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
Pat38493 Posts: 3,328 Forumite
Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
edited 14 May 2024 at 11:35AM in ISAs & tax-free savings
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.


«1

Comments

  • gravel_2
    gravel_2 Posts: 623 Forumite
    Seventh Anniversary 500 Posts Name Dropper Combo Breaker
    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.
  • Beddie
    Beddie Posts: 1,011 Forumite
    Part of the Furniture 500 Posts Photogenic Name Dropper
    You're right - the terms are somewhat designed to potentially trap people. I'd avoid it too. Go with Chip instead.
  • Pat38493
    Pat38493 Posts: 3,328 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    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
    eskbanker Posts: 37,059 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Mark_d said:
    That relates to a different product from their cash ISA that this thread is about....
  • Mark_d
    Mark_d Posts: 2,401 Forumite
    1,000 Posts First Anniversary Name Dropper
    eskbanker said:
    Mark_d said:
    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
    gravel_2 Posts: 623 Forumite
    Seventh Anniversary 500 Posts Name Dropper Combo Breaker
    https://intercom.help/withplum/en/articles/8998770-what-is-cash-isa

    The Plum cash ISA can however utilise QMMFs.
  • Beddie
    Beddie Posts: 1,011 Forumite
    Part of the Furniture 500 Posts Photogenic Name Dropper
    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
    friolento Posts: 2,386 Forumite
    1,000 Posts Second Anniversary Name Dropper Photogenic
    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
    FIREmenow Posts: 375 Forumite
    100 Posts Second Anniversary Name Dropper
    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%
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

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

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.