Bonds - Important Information
At Foresters Friendly Society, we explain to you exactly WHAT a product is, precisely WHY the product may suit your requirements and in simple to understand language, HOW you can apply.
It is also important for you to be aware of the following factors:
- A Bank or Building Society account has greater certainty of growth than a Foresters Friendly Society Bond. The addition of bonuses is not guaranteed and therefore it is possible that the Bond might not receive any annual and/or final bonus.
- The exact amount of money that you get back from your Bond cannot be predicted, because this will depend on the amount of money you invest and the length of time you keep your Bond. Depending on the performance of the With Profit Fund, we may or may not also pay out a final bonus.
- The value of your investment is not guaranteed and you may not get back the amount of your original investment.
- When calculating how much to give you back when you cash-in your Bond, in adverse investment conditions a Market Value Reduction may be applied. If applied this would reduce the value of your Bond. We would only do this to ensure fairness between Bond holders leaving the fund at different times. We will not apply an MVR on death.
- You should be aware that inflation will reduce what you can buy in the future with the fund.
- The Annual Management Charge is initially set at 2% per annum of the value of your Bond. It will not exceed 3% of the value of your Bond in any one year.
- Our deductions may turn out to be higher than expected.
- Your circumstances may change forcing you to cash in your bond.
- The rules and legislation covering the operation of Bonds may change in the future which could affect the tax status of your Bond.
If you are unsure as to the suitability of this product you should seek advice from an Independent Financial Adviser. You may have to pay for this advice.
You should keep your documents in a safe place - they contain important information about the Bond. You will also receive an annual statement illustrating how the policy is performing.
You must read the Bond Key Features Document before you decide to invest.
