T212 vs Plum

dont_use_vistaprint

I recently transferred my Cash ISA savings to a T212 and also put the full amount in for this tax year.

As T212 is flexible, do you think it’s worth now shifting this years 20K into Plum?

what would be your own personal reasons for or against doing this?

masonic

It's irrelevant whether or not T212 is flexible. Flexibility no longer allows you to shift money between different ISAs yourself - you'd need to do a formal transfer.

Plum has various baggage that means my bargepole wouldn't touch it. See other threads for the details.

dont_use_vistaprint

masonic said:

It's irrelevant whether or not T212 is flexible. Flexibility no longer allows you to shift money between different ISAs yourself - you'd need to do a formal transfer.

Plum has various baggage that means my bargepole wouldn't touch it. See other threads for the details.

I did not  know that , I though this years 20K allowance could be withdrawn from T212 and deposited in another ISA?

yeah I’m aware of all the baggage, otherwise it would be a no brainer , or maybe not if above is the case :-)

dont_use_vistaprint

In fact what is to stop you doing that ? 

And according to HMRC they will only tax ISA savings that exceed 20K within or across providers in a single tax year

InvesterJones

Flexible ISA withdrawals can only be put back where they came from if you don't want to remove further from your current year's allowance (wording from HMRC is 'put it back').

refluxer

You'd need to do an ISA transfer from T212 to Plum and Plum don't pay the interest bonus for transferred funds, which would obviously make such a move undesirable.

This, coupled with the fact that the ISA has to remain open for a full 12 months in order to receive the bonus, means you're effectively tied to them for a year. You'd struggle to find a less desirable easy access ISA account then Plum's, that's for sure !

dont_use_vistaprint

refluxer said:

You'd need to do an ISA transfer from T212 to Plum and Plum don't pay the interest bonus for transferred funds, which would obviously make such a move undesirable.

This, coupled with the fact that the ISA has to remain open for a full 12 months in order to receive the bonus, means you're effectively tied to them for a year. You'd struggle to find a less desirable easy access ISA account then Plum's, that's for sure !

Yeah I’ve misunderstood the flexible ISA limitation & need to do a transfer of current years deposits , I knew about the other stuff with Plum, and with T212 dropping to 4.99 &  potentially further, I thought it might be worth it in spite of the limitations, clearly it isn’t.

beefturnmail

I'm not happy with the security of Trading 212's internet banking system - often when I try to login I have to go through a rigmarole of having my identity reverified via video and passport.  Then they sent me a email today regarding an ISA transfer - it has a link in the e-mail to check on my transfer - when I click on this I get logged straight in to my full account, no questions asked.  Also if you close the browser it doesn't automatically log out.  Don't like Plum for the reasons above.  Considering Moneybox, but downside of them is interest (paid annually) is not covered by FSCS

random321

beefturnmail said:

I'm not happy with the security of Trading 212's internet banking system - often when I try to login I have to go through a rigmarole of having my identity reverified via video and passport.  Then they sent me a email today regarding an ISA transfer - it has a link in the e-mail to check on my transfer - when I click on this I get logged straight in to my full account, no questions asked.  Also if you close the browser it doesn't automatically log out.  Don't like Plum for the reasons above.  Considering Moneybox, but downside of them is interest (paid annually) is not covered by FSCS

By default it appears T212 has no security enabled which I also found strange, but if you go into settings you can enable passcode and two-factor authentication if desired.

Ponchos

beefturnmail said:

I'm not happy with the security of Trading 212's internet banking system - often when I try to login I have to go through a rigmarole of having my identity reverified via video and passport.  Then they sent me a email today regarding an ISA transfer - it has a link in the e-mail to check on my transfer - when I click on this I get logged straight in to my full account, no questions asked.  Also if you close the browser it doesn't automatically log out.  Don't like Plum for the reasons above.  Considering Moneybox, but downside of them is interest (paid annually) is not covered by FSCS

Been looking at this thread as I'm wondering where to put money for an ISA (didn't know about Plum problems so I'll go searching in a momet), but for anyone considering Moneybox, I have a Simple Saver with them which is used just for a Direct Debit on bank switches, but works well and the app is good HOWEVER the app is telling me that Cash ISA interest is dropping from 5.17% to 4.92% on 17th December 2024, which "includes an introductory bonus rate of 0.47% for the first 12 months".

It seems to me that Trading212 might be the best option as it is flexible and the interest is paid daily so will surely be compounded throughout the year so you would end up with more money than if interest was paid annually like with most other ISAs (please correct me if I'm wrong).

masonic

dont_use_vistaprint said:

refluxer said:

You'd need to do an ISA transfer from T212 to Plum and Plum don't pay the interest bonus for transferred funds, which would obviously make such a move undesirable.

This, coupled with the fact that the ISA has to remain open for a full 12 months in order to receive the bonus, means you're effectively tied to them for a year. You'd struggle to find a less desirable easy access ISA account then Plum's, that's for sure !

Yeah I’ve misunderstood the flexible ISA limitation & need to do a transfer of current years deposits , I knew about the other stuff with Plum, and with T212 dropping to 4.99 &  potentially further, I thought it might be worth it in spite of the limitations, clearly it isn’t.

The rules used to be different, but were tightened up this tax year.