We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Plum ISA at 5.17%
Options

Pat38493
Posts: 3,328 Forumite


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.
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.
0
Comments
-
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.
0 -
-
You're right - the terms are somewhat designed to potentially trap people. I'd avoid it too. Go with Chip instead.1
-
Beddie said:You're right - the terms are somewhat designed to potentially trap people. I'd avoid it too. Go with Chip instead.0
-
Mark_d said:0
-
https://intercom.help/withplum/en/articles/8998770-what-is-cash-isa
The Plum cash ISA can however utilise QMMFs.0 -
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.0
-
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.
it's been coming soon for a very long time already
1 -
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%1
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.9K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.9K Work, Benefits & Business
- 598.8K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards