Plum being scammy..?

Sanvish

elsien said:

They do. But if you read them, see that they unfair and not transparent and then go ahead anyway there has be a certain degree of personal responsibility.

They are being scammy or at the very least bad/ sharp practice. I opened a Cash ISA account last year in April 2024. 

All was ok till end October and they changed the T&C so interest was paid a month in arrears. No option to customers for a way out of it was not acceptable. Transferring out meant you lost the bonus you got for staying with them

Decided to transfer out, once the 12 months expired and got an email saying interest for March will be credited end of April and not when the transfer occurs. So need to put in another transfer request once it is credited. Still unclear if the bonus will be credited though I stayed with them for 12 months and obviously I also lose any interest for April which is truly " scammy".

Still glad I am getting out even if I lose 15 days interest. MSE Should really not be recommending this company without the necessary caveats.

masonic

I would describe this as scummy rather than scammy.

Sanvish said:

Still glad I am getting out even if I lose 15 days interest. MSE Should really not be recommending this company without the necessary caveats.

They specifically aren't recommending it. They've excluded it from the "what we'd go for" rundown - I don't recall previously seeing them do this for a top rate. It is only listed in the "in rate order" table. That's as close to a "we don't recommend this" as you will get from a best buy article.

booneruk

MSE don't recommend, they list in rate order. 

If people want to jump about all the time chasing rates then why isn't the interest lure enough to stay the full 12 months?

masonic

booneruk said:

If people want to jump about all the time chasing rates then why isn't the interest lure enough to stay the full 12 months?

It's better to exit after 3-4 months, having secured the bonus rate, even if you forfeit a few days interest at the lower rate. That way you'll achieve a rate equivalent to slightly north of 5%.

Sanvish

Redacted content of email in full

"Hello xxx,

We’ve received a request from xxxx to transfer your ISA from Plum.

We aim to process this transfer within 5 working days, unless your provider has asked us to wait until your Plum ISA matures. Please note that any pending interest, including bonus interest (if applicable), is paid on the last working day of the following month, not at the time of transfer or Plum ISA maturity.

When this interest is paid, it will be added to your Plum ISA account. You’ll then have the option to:

Withdraw the funds to your Plum Pocket and linked bank account, or

Request a new transfer through your external ISA provider for us to send the funds to.

In any case, the choice will be yours once the interest arrives.

If you have changed your mind, you’re welcome to cancel your transfer request within the next 24 hours, just let us know and you must inform your provider so they can update their records.

If we do not hear anything from you, we’ll continue and proceed with your request.

If you have any questions in the meantime, we’re always happy to help.

Best regards,

xxxxxx

Plum ISA Transfers

Plum Team

withplum.com"

So beware..Essentially whatever interest rate is advertised, you will always get a little bit less at the end unless you're ok with interest a month in arrears even when you transfer out.

The month in arrears may also change at any time and there probably will be no get out clause.

masonic

Based on the text of this email, I wonder if you could specify the 1st of the month as the transfer date on the new provider's form to minimise the amount of interest forfeit. For example, if your bonus payment date was say 5th July, request it for 1st August. Though it won't make a huge difference vs an immediate transfer requested on 7th July.

Sanvish

masonic said:

They specifically aren't recommending it. They've excluded it from the "what we'd go for" rundown - I don't recall previously seeing them do this for a top rate. It is only listed in the "in rate order" table. That's as close to a "we don't recommend this" as you will get from a best buy article.

booneruk said:

MSE don't recommend, they list in rate order. 

Fair enough, not recommend but the listing could be caveated to advise, as they did with CMC investment for example.

Sanvish

masonic said:

Based on the text of this email, I wonder if you could specify the 1st of the month as the transfer date on the new provider's form to minimise the amount of interest forfeit. For example, if your bonus payment date was say 5th July, request it for 1st August. Though it won't make a huge difference vs an immediate transfer requested on 7th July.

Yes, probably advisable to do that. I thought it would work just like any other self respecting financial institution where interest would be credited till the day one transferred out, but obviously not.

masonic

Sanvish said:

masonic said:

They specifically aren't recommending it. They've excluded it from the "what we'd go for" rundown - I don't recall previously seeing them do this for a top rate. It is only listed in the "in rate order" table. That's as close to a "we don't recommend this" as you will get from a best buy article.

booneruk said:

MSE don't recommend, they list in rate order. 

Fair enough, not recommend but the listing could be caveated to advise, as they did with CMC investment for example.

The CMC caveat is factual - the money is not held in deposit accounts so there is investment risk. The issues raised in this thread are hypothetical and conjecture-based. If MSE put a warning against every provider some of their readers have formed a negative opinion about, there would be nothing left.

Sanvish

masonic said:

Sanvish said:

masonic said:

They specifically aren't recommending it. They've excluded it from the "what we'd go for" rundown - I don't recall previously seeing them do this for a top rate. It is only listed in the "in rate order" table. That's as close to a "we don't recommend this" as you will get from a best buy article.

booneruk said:

MSE don't recommend, they list in rate order. 

Fair enough, not recommend but the listing could be caveated to advise, as they did with CMC investment for example.

The CMC caveat is factual - the money is not held in deposit accounts so there is investment risk. The issues raised in this thread are hypothetical and conjecture-based. If MSE put a warning against every provider some of their readers have formed a negative opinion about, there would be nothing left.

From what I understand for the cash ISA there isn't an investment risk. The money is currently held with NatWest which may change. The risk is with protection if you have other deposits with whatsoever bank CMC are holding the deposit in.