Chip cash ISA dilemma - what to do?

pecunianonolet

Hi,

Got an ISA with Trading212, which holds the maturity of the funds and previous year subscriptions and ca 13k of this years subscription allowance. The remaining 7k are in the Chip ISA and have been used over the year as an easy access account to dip into for bill payments, etc as the pot was building up and any withdrawals were replaced with next month salary income. With the ISA subscription limit reached excess funds are diverted into regular savers and some into easy access. 

The Chip rate is 4.58% AER and trading is 4.9% so the difference isn't that significant. I am expecting more rate cuts to come, especially in Feb (inflation, weak currency, government debt, etc.) and Chip as a tracker usually lowers it's rates the same day whereby Trading usually holds them a bit longer before any cuts are passed on. 

My initial thought would be to transfer out from Chip and into Trading212, because why should funds not earn the maximum of what is possible. 

My dilemma is that once transferred out from Chip I am not able to open a new Cash ISA with them ever again as they say. I like the nature of instant 24/7 access with Chip.

Option 1: Bite the dust and keep the 7k in Chip but don't put any more of my new allowance in come 6th of April and keep using the 7k as operating fund as I can freely replace due to the power of it being a flexible ISA but at the expense of accepting the lower rate.

Option 2: Transfer out and accept that this option will cease to exist. I don't use their easy access facility and I don't think that if I close my account and therefore my relationship with Chip and maybe wait a few weeks and become a "new" customer again that I will be allowed to open a new ISA with them. Which means Chip would be dead for me in the future.

I wonder how others have dealt with this dilemma and if transferred out from Chip what alternatives were used? 

Ayr_Rage

The T212 Cash ISA is FLEXIBLE, so just move it all there.

pecunianonolet

Ayr_Rage said:

The T212 Cash ISA is FLEXIBLE, so just move it all there.

I know but withdrawals are not guaranteed instantly and can take up to 3 days (they are much quicker now)

slinger2

Ayr_Rage said:

The T212 Cash ISA is FLEXIBLE, so just move it all there.

Replacement money into the T212 must have been withdrawn earlier in the same tax year from the same ISA. You can't withdraw from another flexible ISA and replace it in T212. Simply not allowed. You'd need to do a transfer.