MSE misleading on Trading212 ISA

wiseonesomeofthetime

Lettuce2 said:

I totally agree with the comments of  27th June@ 12:41.
It would have been better and transparent if upfront on their flyers Trading 212 clearly state the delay in payment....just like Oxbury bank for example.
It is not until my son tried to withdraw £3995 on Friday the 20th for the deposit of a car that we were reminded of the small print in paragraph 9.3 of the terms and conditions.
The monies was deducted from his ISA account but payment was not received into his Lloyds account until Tuesday 24th.
The bank of mum and dad had to come to his rescue and saved the day!

But then people wouldn't read the small print before opening the account, would they?  🤔

Czure

cmgurney said:

Grahamnoelbutler said:

So I transferred in a large cash ISA recently with ease. I have a similarly large cash ISA elsewhere

I’ve been informed that I have a 40/40/20 split of those funds across their three linked banks.

Is there any reason I shouldn’t transfer my other cash ISA account in?

It’ll give me nearly double the FSCS protection limit. As long as their spreading of my second ISA is in similar vein,?

I came here looking for an answer to the same question. I've had my cash ISA with Trading212 since June. With the interest being added daily, I will hit the £85,000 limit tomorrow. The split on my account is 16 / 40 / 44 between the three linked banks. There are two separate posts by Trading212 on their user forum stating that FSCS protection is £85,000 per bank. I have no other savings with any of those three banks. I realise that the proportions held in each bank could change but that's something that can be monitored and it has remained stable for the past three months. So I'm inclined to leave the money to accumulate interest over £85,000.

Unless they've got over £250k I feel that the possibility of £85k of someone's ISA sitting in only 1 of the banks used by T212 at the time that bank went bust would make someone the unluckiest person in human history BUT that doesn't make it an impossibility!
Personally on hitting £80k (not 85) I'd look for an additional ISA with the next highest payer who isn't one of those banks & open a new ISA with them for the peace of mind, doesn't even need to be easy access because you could get an even better rate whilst still having the access & flexibility of the money in your T212 ISA if moneys ever needed.
Otherwise you'll find you need to check your T212 split at least a couple of times a day, everyday. 

nomorekids

Have anyone any info on transferring out of Trading 212, do they allow partial isa transfers? I have a largish isa maturing shortly and thinking of parking it in Trading along with what I've managed so far to save this tax year, for a bit, at least whilst they have a higher interest rate than the fixes. I will want to do a partial ISA transfer out at some point though. Thanks in advance anyone, can't find the info myself.

uscool

nomorekids said:

Have anyone any info on transferring out of Trading 212, do they allow partial isa transfers? I have a largish isa maturing shortly and thinking of parking it in Trading along with what I've managed so far to save this tax year, for a bit, at least whilst they have a higher interest rate than the fixes. I will want to do a partial ISA transfer out at some point though. Thanks in advance anyone, can't find the info myself.

yes you can

Exodi

Lettuce2 said:

I totally agree with the comments of  27th June@ 12:41.
It would have been better and transparent if upfront on their flyers Trading 212 clearly state the delay in payment....just like Oxbury bank for example.
It is not until my son tried to withdraw £3995 on Friday the 20th for the deposit of a car that we were reminded of the small print in paragraph 9.3 of the terms and conditions.
The monies was deducted from his ISA account but payment was not received into his Lloyds account until Tuesday 24th.
The bank of mum and dad had to come to his rescue and saved the day!

I think in general it's not sensible to to request withdrawal of a large amount from a savings account on a Friday if you need it immediately.

While T212 does typically take ~2 days in my experience (though I've also had it be instant a few times also), I have likewise had experience with the other 'instant' transfers (e.g. Chip) being delayed. I suspect doing it over a weekend only exasperates the risk.

In my experience, a ~2 days withdrawal window is easy to work around (and in this example, presumably the idea to buy a car wasn't sudden).

Though I guess there is some credit to those suggesting that it's not really 5.17% if you have to withdraw a few days earlier than other apps. That said, I'd imagine it still smashes any other EA rate, even with the delay considered.

I guess if you absolutely require instant transfers, then hold an account with one of the clearing banks (or Chip/Clearbank which seem to be an exception). Tandem and Zopa also seem to clear in ~1-2 hours.

Czure

For those wondering, T212 accepts partial transfers in for both previous years savings & also separately for money saved in the current year. You can also do the same for transferring out.

EDIT FOR BELOW INFO- Turns out Coventry only allow partial transfer out of previous years but not for current, so because I opted for full previous years which was done as requested, Coventry then automatically sent all of this years instead of only the amount T212 asked for.
Lesson from this is remember to check back with current providers T&C's & not just those for the new provider.
I deserve a slap on the wrists for failing to do that, BUT the Coventry agent I spoke with deserves a kick up the jacksy for not informing me of this but instead trying to lay the blame at T212's door.

I also removed some of my later comments as they weren't really relevant to this issue.

ORIGINAL COMMENT- BUT BEWARE. I opened my T212 ISA at 1am on Tue' 12th Nov' & requested they transfer my Coventry BS ISA's full previous years amounts BUT ONLY a partial amount from my current year which should've left me with over £2k still in my Coventry ISA, this didn't happen!

Last night I tried logging into my Coventry online account to see if anything had changed only to be blocked from logging in, I rang Coventry (lines open till 7pm) to see what was going on & was told that T212 had taken the amounts I requested BUT THEN TOOK the interest of £2,407.67 as a separate transfer amount which closed my Coventry ISA, hence no Coventry account to login to.

masonic

Czure said:

Last night I tried logging into my Coventry online account to see if anything had changed only to be blocked from logging in, I rang Coventry (lines open till 7pm) to see what was going on & was told that T212 had taken the amounts I requested BUT THEN TOOK the interest of £2,407.67 as a separate transfer amount which closed my Coventry ISA, hence no Coventry account to login to.

Hard to know what's really gone on here, but T212 is not able to "take" anything from Coventry, it must be given. The only way it would be given, after the original amount was transferred, is if Coventry sent it in error, Coventry was unwilling to partially transfer current year money, or T212 requested it under cover of another spurious transfer request. Looking at the terms around ISA transfers from Coventry, this is interesting:

So my guess is that Coventry was unwilling (or their systems unable) to split the current year subscriptions.

Aidanmc

Czure said:

For those wondering, T212 accepts partial transfers in for both previous years savings & also separately for money saved in the current year. You can also do the same for transferring out.

BUT BEWARE. I opened my T212 ISA at 1am on Tue' 12th Nov' & requested they transfer my Coventry BS ISA's full previous years amounts BUT ONLY a partial amount from my current year which should've left me with over £2k still in my Coventry ISA, this didn't happen!

Last night I tried logging into my Coventry online account to see if anything had changed only to be blocked from logging in, I rang Coventry (lines open till 7pm) to see what was going on & was told that T212 had taken the amounts I requested BUT THEN TOOK the interest of £2,407.67 as a separate transfer amount which closed my Coventry ISA, hence no Coventry account to login to.

It's not the end of the world for me personally as I have almost £10k of this years allowance left so could open another ISA if I wished using money from that and/or even transfer some of the T212 if I wanted to, but as I'm nowhere near £85k there's no panic for this, unless a much more favourable rate is miraculously offered by another provider.

It's the fact that someone has failed to carry out my instructions correctly that bothers me as this is a very long way off being good practice. I haven't contacted T212 regarding this (as I say "it's not an issue for me" fortunately) so I can't be certain if it was T212 who actually failed to follow my instructions correctly or if Coventry are in fact the guilty party & their agent was merely passing the buck.

The good news is that my money is now showing in T212 so the transfer only took 2 & a bit days. The amount I've paid in this financial year is actually showing as 'Reserved' in T212. It's making interest & accessible for withdrawal if needed, the exact message regarding this on the site says-

 'Reserved' represents value from your ISA transfer, allocated to your current tax-year allowance.

 The funds are deposited and available for use. We're just confirming if the transfer should apply to your current years allowance. In the meantime, we assume it does to protect you from oversubscribing.

 You don't need to do anything. We will notify you as soon as your ISA allowance is fully confirmed.

T212 seem to do things slightly differently from any other ISA provider I've used but I do understand the reason for this reserved amount & my full amount does show in my available funds AND is counted for making interest, so this isn't an issue.

As for the reports of people waiting 3 working days for withdrawals to clear, I know it's not ideal so if you can't keep a nice lump of cash for instant access in another account then remember this wait time & try to plan ahead whenever possible, although plenty have reported fast clearance times. The banks used by T212 all use instant and/or next working day withdrawals BUT I suspect that the money requested for withdrawal needs to be transferred from T212's account with the bank into a different account with that bank before then being sent out & this would explain the 3 day terms & why no interest is made over those days.

Was the 'interest of £2,407.67' already credited to the existing Coventry ISA before the transfer was initiated?

I wouldn't have thought T212 could have taken it as such, i would have thought it had to be sent from Coventry to T212.

Czure

masonic said:

Czure said:

Last night I tried logging into my Coventry online account to see if anything had changed only to be blocked from logging in, I rang Coventry (lines open till 7pm) to see what was going on & was told that T212 had taken the amounts I requested BUT THEN TOOK the interest of £2,407.67 as a separate transfer amount which closed my Coventry ISA, hence no Coventry account to login to.

Hard to know what's really gone on here, but T212 is not able to "take" anything from Coventry, it must be given. The only way it would be given, after the original amount was transferred, is if Coventry sent it in error, Coventry was unwilling to partially transfer current year money, or T212 requested it under cover of another spurious transfer request. Looking at the terms around ISA transfers from Coventry, this is interesting:

So my guess is that Coventry was unwilling (or their systems unable) to split the current year subscriptions.

Ah-Ha. Silly me not to have gone back for another look at Coventry's T&C's eh.

That can be the only explanation for why nothing was left behind, BUT VERY VERY NAUGHTY of the Coventry agent not to have pointed this out but to instead lay the blame on T212. Slapped wrists for both he & I in this instance.

Lesson to take from this is- Remember to check T&C's not only for the new provider but also for your current one.

Czure

Aidanmc said:

Czure said:

For those wondering, T212 accepts partial transfers in for both previous years savings & also separately for money saved in the current year. You can also do the same for transferring out.

BUT BEWARE. I opened my T212 ISA at 1am on Tue' 12th Nov' & requested they transfer my Coventry BS ISA's full previous years amounts BUT ONLY a partial amount from my current year which should've left me with over £2k still in my Coventry ISA, this didn't happen!

Last night I tried logging into my Coventry online account to see if anything had changed only to be blocked from logging in, I rang Coventry (lines open till 7pm) to see what was going on & was told that T212 had taken the amounts I requested BUT THEN TOOK the interest of £2,407.67 as a separate transfer amount which closed my Coventry ISA, hence no Coventry account to login to.

It's not the end of the world for me personally as I have almost £10k of this years allowance left so could open another ISA if I wished using money from that and/or even transfer some of the T212 if I wanted to, but as I'm nowhere near £85k there's no panic for this, unless a much more favourable rate is miraculously offered by another provider.

It's the fact that someone has failed to carry out my instructions correctly that bothers me as this is a very long way off being good practice. I haven't contacted T212 regarding this (as I say "it's not an issue for me" fortunately) so I can't be certain if it was T212 who actually failed to follow my instructions correctly or if Coventry are in fact the guilty party & their agent was merely passing the buck.

The good news is that my money is now showing in T212 so the transfer only took 2 & a bit days. The amount I've paid in this financial year is actually showing as 'Reserved' in T212. It's making interest & accessible for withdrawal if needed, the exact message regarding this on the site says-

 'Reserved' represents value from your ISA transfer, allocated to your current tax-year allowance.

 The funds are deposited and available for use. We're just confirming if the transfer should apply to your current years allowance. In the meantime, we assume it does to protect you from oversubscribing.

 You don't need to do anything. We will notify you as soon as your ISA allowance is fully confirmed.

T212 seem to do things slightly differently from any other ISA provider I've used but I do understand the reason for this reserved amount & my full amount does show in my available funds AND is counted for making interest, so this isn't an issue.

As for the reports of people waiting 3 working days for withdrawals to clear, I know it's not ideal so if you can't keep a nice lump of cash for instant access in another account then remember this wait time & try to plan ahead whenever possible, although plenty have reported fast clearance times. The banks used by T212 all use instant and/or next working day withdrawals BUT I suspect that the money requested for withdrawal needs to be transferred from T212's account with the bank into a different account with that bank before then being sent out & this would explain the 3 day terms & why no interest is made over those days.

Was the 'interest of £2,407.67' already credited to the existing Coventry ISA before the transfer was initiated?

I wouldn't have thought T212 could have taken it as such, i would have thought it had to be sent from Coventry to T212.

Only £2100.42 interest had gone in when I checked my Coventry on the day of requesting the transfer, the amount I requested to go from the current year should've left £2k behind to my mind.

BUT I made the error of not looking back at the Coventry T&C's again & thanks to 'masonic' above I now realise my mistake & should've asked for full current year but minus the £2k from previous years & that would've done the trick. As for the extra interest amount of £307.25 that was obviously the final amount still to be added up to date.

My silly mistake for only checking T212's T&C's without going back to re-familiarise myself with Coventry's T&C's, but very very naughty of Coventry agent trying to lay the blame at T212's door instead of pointing out their terms relating to full & partial transfers.

At least I now know what happened however & keeping the Coventry wasn't a deal breaker.