Plum now delaying cash ISA monthly interest payments

masonic

wmb194 said:

masonic said:

If that's correct (and I don't have much confidence in their front-line support being well educated in these details), then it is even more bizarre as the balance of your account is just a number on a screen until you actually withdraw it. So what difference does it make to credit the interest vs not if you are still accruing interest on it either way? They can't avoid crediting it immediately if your ISA is transferred out to another provider. How much benefit are they going to get from hiding the last few pounds of the money that is acknowledged to be part of each customer's balance that is accruing interest?

Plum Fintech Ltd's filings on Companies House make for alarming reading as it appears to be haemorrhaging cash but on the other hand it's still raising money - £16.1m a few months ago, comprised of a £13.4m "Series B" funding round and £2.7m via Crowdcube.

https://www.fintechfutures.com/2024/07/uk-money-management-app-plum-raises-16-1m-investment/

https://find-and-update.company-information.service.gov.uk/company/09952199/filing-history

Yes, I did have a look at its recent accounts. The main thing I took away was that it was consistently spending £2.20 for each £1 turnover, which I thought was quite surprising given they haven't exactly been throwing money at customer acquisition (at least not in a way we could profit from it). Historically I've used them as a convenient source of direct debit mandates for switching incentives and that's probably where I would draw the line. The move to delay interest payments by a month (whether or not this reduces the compound interest earned) is only going to annoy and drive customers away. I very much doubt it will help their financial position.

sstephanie40

Newbie_John said:

Just seen an email, they already delay interests by keeping bonus for 12 months and now it says we'll get interests on 1 Nov and then.. 31st Dec 😅

Keeping in mind they track BoE interest rates, it's very likely their 4.92% will drop again in November - so I'll move my money away at the end of this month keeping there just a £100.

I asked them about this. They say you can't partially transfer this ISA. It has to be a total transfer (& closure). They allow partial withdrawal to a non ISA account - so losing ISA status. 

Oxford2010

Recently transferred my ISA from plum to Trading 212, better interest and payed daily.