Are Fintech’s worth it? Over established banks.

TeaBee72

Following the great rate that Plum offered on their cash isa I opened one and put a sizeable amount into them. A year ok I’m looking to move to a better rate and oh my what a faff

it turns out that as Plum (and allegedly other FinTechs) don’t have the same establishment as high street banks - the process for transfers is clunky. I’m almost two months on to a paper transfer with neither Lloyds or plum really being able to help and each blaming each other ( it appears evidently to be an issue with Plum releasing funds).

I always wandered why people favoured established brands… and thought it was narrow minded. I’m starting to see why. Maybe worth a few pennies less in interest for ease and convenience.

anyoem had similar issues? 

clairec666

Plum seem to be a bit problematic. There's another thread on here about the difficulties of transferring out of Trading 212. It's not impossible, but it's a bit of a faff and some people haven't got the time for that and would happily forego a higher interest rate.

Trouble is, often their rates are quite a chunk higher than established brands, so it's not just a few pounds difference.

I personally keep my "emergency funds" in a Trading 212 ISA, but have avoided putting my long-term savings in there - I'd like the security of a hassle-free transfer out when they drop their interest rate (which they seem to do quite often!) I'm potentially missing out on some higher rates, but it suits me.

grumpy_codger

Complain. There is 15 working days limit for cash ISA transfers.

Albermarle

TeaBee72 said:

Following the great rate that Plum offered on their cash isa I opened one and put a sizeable amount into them. A year ok I’m looking to move to a better rate and oh my what a faff

it turns out that as Plum (and allegedly other FinTechs) don’t have the same establishment as high street banks - the process for transfers is clunky. I’m almost two months on to a paper transfer with neither Lloyds or plum really being able to help and each blaming each other ( it appears evidently to be an issue with Plum releasing funds).

I always wandered why people favoured established brands… and thought it was narrow minded. I’m starting to see why. Maybe worth a few pennies less in interest for ease and convenience.

anyoem had similar issues? 

Remember inbetween new entrants like ( Plum and T212) and High St banks, there is a whole raft of mainly well established smaller players/savings providers. Such as Paragon, Aldermore, Charter, Ford Money etc . Plus various building societies.
Dealing with them is normally very similar to dealing with a High St bank, except that the interest rates are normally better.