Transferring an ISA

johnws1963

My partner and I both have ISA's with Moneybox that matured recently. The % rate has changed to a reasonable 4.45%. I looked at a transfer to Plum given their headline rate of 5.01% but delving deeper it seems to be offering 3.79% "if you transfer in". I don't understand the logic of this as I would be a new customer to Plum. Is my understanding right & if so, why are Plum doing this?

QrizB

johnws1963 said:

... why are Plum doing this?

If I was to guess, it would be that Plum don't want to pay 5.01% on more than £20k per account holder.
If they paid it on transfers in, they might end up paying that rate on six-figure sums.

Hoenir

Marketing to get new customers on board. As opposed to seeking huge amounts of deposits. 

Albermarle

johnws1963 said:

My partner and I both have ISA's with Moneybox that matured recently. The % rate has changed to a reasonable 4.45%. I looked at a transfer to Plum given their headline rate of 5.01% but delving deeper it seems to be offering 3.79% "if you transfer in". I don't understand the logic of this as I would be a new customer to Plum. Is my understanding right & if so, why are Plum doing this?

If you look through the forum you will see a few threads commenting on Plum's sometimes unusual way of operating.