Plum ISA at 5.17%

Pat38493

The best ISA on the MME website page at the moment is Plum at 5.17%.

However I'm wondering if this is really a good idea - looking into the description on the web site, the actual ongoing rate you get paid is 4.29%.  Then there is a bonus of 0.88% that you get paid after one year.  

However, it says that the interest rates are variable, and so is the bonus.

Does this mean you could end up worse off if Plum decides to a) reduce the monthly interest I am paid and b) reduce the annual bonus part?  (they will for sure do this if the base rate goes down but what's to stop them just doing it whenever they like)?

I was going to invest £20K in this but I'm a bit wary of getting locked in for a year to what turns out to be not as good a deal as it looks.

gravel_2

Post seems a bit mixed up.

All access ISAs will be variable. Normally the underlying rate is variable, but yes with Plum even the bonus is variable. This is the price you pay for not wanting a fixed term ISA.

It is bad that transfers get 4.29%. If you are transferring an ISA balance you should pick a different product.

You should be able to transfer a Plum ISA to some other bank if you decide you no longer want it. Note however the terms seem to suggest that if you move money mid month you lose interest that month.

Mark_d

https://help.withplum.com/en/articles/8320302-what-is-plum-interest

Beddie

You're right - the terms are somewhat designed to potentially trap people. I'd avoid it too. Go with Chip instead.

Pat38493

Beddie said:

You're right - the terms are somewhat designed to potentially trap people. I'd avoid it too. Go with Chip instead.

The Chip one looks interesting also.  However on the MME best buy page is says that transfers in are not allowed with the Chip account, but on the Chip website it seems to indicate that they are allowed.

eskbanker

Mark_d said:

https://help.withplum.com/en/articles/8320302-what-is-plum-interest

That relates to a different product from their cash ISA that this thread is about....

Mark_d

eskbanker said:

Mark_d said:

https://help.withplum.com/en/articles/8320302-what-is-plum-interest

That relates to a different product from their cash ISA that this thread is about....

Ahh yes.  You're correct. Silly name for an account "Plum Interest" !

gravel_2

https://intercom.help/withplum/en/articles/8998770-what-is-cash-isa

The Plum cash ISA can however utilise QMMFs.

Beddie

Pat38493 said:

Beddie said:

You're right - the terms are somewhat designed to potentially trap people. I'd avoid it too. Go with Chip instead.

The Chip one looks interesting also.  However on the MME best buy page is says that transfers in are not allowed with the Chip account, but on the Chip website it seems to indicate that they are allowed.

You didn't say it was a transfer in your earlier post...  Cash ISA transfers are coming soon, according to Chip website. 

friolento

Beddie said:

Pat38493 said:

Beddie said:

You're right - the terms are somewhat designed to potentially trap people. I'd avoid it too. Go with Chip instead.

The Chip one looks interesting also.  However on the MME best buy page is says that transfers in are not allowed with the Chip account, but on the Chip website it seems to indicate that they are allowed.

You didn't say it was a transfer in your earlier post...  Cash ISA transfers are coming soon, according to Chip website. 

it's been coming soon for a very long time already

FIREmenow

I also looked at this and was put off by losing interest in the month you made a withdrawal. You also don't get any of the bonus if you transfer out before it has been credited, plus that month's interest.

Also states that cash has the usual FSCS protection but QMMFs do not, and then vaguely says we might hold your money in either. Says FSCS protection is across all money held with the banking partner, but doesn't say who that is.

Lastly, if you make more than three withdrawals in a year the rates drops to 3%