Transfer out of Plum ISA

tunde10

Hi, just hoping for some advice.

I have the easy Access Plum ISA which the rate has dropped to 4.92%. I think the rate could fall further going forward so decided to open the 1yr Virgin M ISA at 5.05%. During an Online transfer through Virgin, i could not see Plum listed.

Ii tried to do the transfer form but when i log into Plum, there is actually no sort code and account number visible. I had to connect to another bank directly through Plum app to pay the money in initially.

Anyway, my question is with the new ISA rules allowing you to open and fund multiple accounts, can i just take the whole balance out myself and put it in the Virgin account?

If i can't, what is the solution as i'm stuck (already used in £20k allowance). 

lohr500

I think this has been discussed before and assuming you funded the easy access Plum ISA this tax year, then the conclusion was that you can only withdraw and put back into that same ISA.

If it was from an earlier tax year then withdrawing the balance would mean you lose the tax free ISA status on the withdrawal.

You probably need to contact Plum to ask what Sort Code/Account number or membership number you need to use to transfer out of their ISA. 

gravel_2

lohr500 said:

I think this has been discussed before and assuming you funded the easy access Plum ISA this tax year, then the conclusion was that you can only withdraw and put back into that same ISA.

If it was from an earlier tax year then withdrawing the balance would mean you lose the tax free ISA status on the withdrawal.

You probably need to contact Plum to ask what Sort Code/Account number or membership number you need to use to transfer out of their ISA. 

It's not possible but not for the reason you've stated. It doesn't matter which year it was contributed - if the ISA is flexible then it is possible to remove cash from it but that cash has to be returned to the same ISA in the same tax year that it is withdrawn

@OP Plum should/will have some kind of unique reference/account code. This will be enough for the Plum and the recieving provider to know which account they are targetting. It's just a question of whether you can submit a form with just that information.

If Plum allows you to pay in by bank transfer then use that sort code, even if that's a sort code for their third party bank (likely).

slinger2

1. Plum is not a flexible ISA, so any money withdrawn is lost from the ISA umbrella.

2. My understanding is that if you transfer out in the first year you lose all the bonus (0.88%) you've earned so far. You'll get the 4.29/4.04%.

3. Isn't there also a rule about losing interest for any month you make a withdrawal? I'm not sure whether that applies to transfers.

Can of worms.

tunde10

Thanks, looks like its not worth transferring out with the hassle and difference in rates then,

It is worrying how difficult it is as i'd have to transfer eventually in future.

slinger2

Found this in their regulations:

"You can make a request to transfer out your ISA with Plum through Plum’s customer support. If you close your Cash ISA with Plum and Transfer Out within the 12 month period after opening your Cash ISA account with Plum you will lose your bonus and forfeit any interest earned that month. Only full transfers-out for the current tax year are accepted."

Assuming that the monthly interest is paid at the start of the month, it's perhaps best to transfer out immediately after that.

If you can't transfer from Plum to Virgin you could try doing it in 2 stages: Plum to X and then X to Virgin. All gets very complicated.

Albermarle

I have the easy Access Plum ISA which the rate has dropped to 4.92%. I think the rate could fall further going forward so decided to open the 1yr Virgin M ISA at 5.05%

That is a pretty small amount to transfer for, especially as Virgin could drop their rates soon after the transfer.

There are a number of threads on the forum about Plum being a bit quirky to deal with.

slinger2

Albermarle said:

I have the easy Access Plum ISA which the rate has dropped to 4.92%. I think the rate could fall further going forward so decided to open the 1yr Virgin M ISA at 5.05%

That is a pretty small amount to transfer for, especially as Virgin could drop their rates soon after the transfer.

There are a number of threads on the forum about Plum being a bit quirky to deal with.

The Virgin one is a fixed rate, I think

big_head

Hello there, I am curious if there has been any update on transferring out of plum into virgin please? Thanks 

onotimagen

The problem appears to be at the Virgin end. They have a fixed list of providers you can transfer an ISA in from online. Plum and many other similar providers on the best buy list are not on it.
It means you have to download a form from Virgin, fill it in and post it to initiate the transfer

MeteredOut

onotimagen said:

The problem appears to be at the Virgin end. They have a fixed list of providers you can transfer an ISA in from online. Plum and many other similar providers on the best buy list are not on it.
It means you have to download a form from Virgin, fill it in and post it to initiate the transfer

When I've transferred funds from a Plum ISA (but not to Virgin) the correct source ISA choice was Saveable Limited, which is their legal name

https://help.withplum.com/en/articles/9070552-transfer-cash-isa-out-of-plum

Might be worth checking if that's the same with Virgin.