Chip ISA Promo Honoured for Transfers In?

larachantie

Chip has a promotion for six months with a boost of 0.68% to take it to 5% for new customers paying in this tax year or transfering existing ISAs.  To get the promo you must pay in £1 within 14 days of opening.  I think you can see the catch for transfers: if you have maxed out your £20k payments this year you can't pay the £1 and of course the transfer may take more than 14 days.  So would Chip then honour the promo or put you on 4.32%?  If not, the switch makes no sense as my existing ISA provider pays more than 4.32%.  Of course, I've messaged Chip but no reply yet...

I doubt if anyone knows the answer so I'm flagging this up for anyone thinking of doing the same.

winkowinko

Open it towards the end of the month, and deposit the £1 within 14 days (ie 6th April). I don't think the transfer HAS to take place within 14 days.

larachantie

winkowinko said:

Open it towards the end of the month, and deposit the £1 within 14 days (ie 6th April). I don't think the transfer HAS to take place within 14 days.

Thanks.  This might work for newbies (I've already opened one) as it looks like Chip will run the promo for all of March at least.  But that means losing the higher rate for two and a bit weeks.  Hopefully Chip will simply honour the promo for transfers if they do take > 14 days, as implied.

larachantie

Just to close this.  Chip said yes as along as you initiate the ISA transfer within the 14 promo days of opening they will honour the promo rate even if transfer takes longer.  In fact they did our transfers (wife as well) from Moneybox in about four working days so good service.

soulsaver

In another thread, someone asked whether it was thought a good idea to hold some ISA intended funds back rather than use the lot in one go early in the FY. 

They got a lot of negative responses, but I don't think it's a bad idea & usually hold back £100 (from my £20k) until the end of the FY exactly for these opportunities. Trading 212 had/has similar boosted offers that you could secure with a £1 keeping options open until the new FY. 

sammy_zammy

soulsaver said:

In another thread, someone asked whether it was thought a good idea to hold some ISA intended funds back rather than use the lot in one go early in the FY. 

They got a lot of negative responses, but I don't think it's a bad idea & usually hold back £100 (from my £20k) until the end of the FY exactly for these opportunities. Trading 212 had/has similar boosted offers that you could secure with a £1 keeping options open until the new FY. 

I think it makes complete sense. I wanted to open a Shawbrook ISA, but didn’t have £1k left to do it. It was going to require some complicated partial ISA transfers to achieve that, and it was muddied by the fact I’d just requested a transfer to Chip, which doesn’t allow partial transfers. Thankfully Shawbrook confirmed I could add the £1k at any point, so am waiting until next tax year, but £1k to spare would’ve been handy!

Of course in previous tax years it wouldn’t be an option as you could only add new funds to 1 ISA a year.