Issues with Plum

Gemstars2024

I just wanted to post this for info for anyone considering a Plum Cash ISA. 

I'm new to ISAs, opening my first late last year, and my second this year. 

I wanted something that pays interest monthly as I may need to take that money out short notice (house hunting) and opted for the MSE recommended Plum Cash ISA with a 5.17% interest rate. 

It turns out it's not 5.17, it's 4.29 with a 0.88 bonus. The bonus interest is only paid out after 12 months and if the ISA is closed before then the bonus is forfeit. 

Like I said, I'm new to this so maybe that would have been obvious on sign up to someone more savvy than me, but I thought it might be useful to share my experience. 

gravel_2

Plum is an unusual product and it has caught a number of posters out. Strictly speaking, if you had read the terms you would know of these problems in advance, but with the particular provider I do sympathise with you - it's really not set up as your expect a normal cash ISA to be.

eskbanker

Gemstars2024 said:

I wanted something that pays interest monthly as I may need to take that money out short notice (house hunting) and opted for the MSE recommended Plum Cash ISA with a 5.17% interest rate. 

Most standard savings accounts (including ISAs) paying interest annually will add accrued interest to the final balance if closing before the year is up, so ironically if you'd gone for one of those without that bonus structure, you'd have received (pro rata) interest at the full rate.