Plum ISA transfer out - interest forfeited

Babycakes

I have a Plum ISA, which I have had for over a year. A better rate came out, so I asked my new provider to transfer in from Plum. Plum have sent my monthly balance today, but I have lost 3 weeks interest.

They tell me that you forfeit the interest when you transfer out, yet this was never made clear when I opened the account.

Anyone else had a similar issue?

masonic

They do make it clear that if you transfer out part way through the month you forfeit interest for the part-month.

https://help.withplum.com/en/articles/9070552-transfer-cash-isa-out-of-plum

It's also in the T&Cs.

Yes, it also happened to me, and I was well aware it would happen before I opened the account just over a year ago. I lost 8 days interest, but the rate was pretty rubbish by that point anyway. The transfer was actually completed very quickly, so that was something.

Even with those few days lost, my achieved interest for the year was still better than I'd have got from a mainstream provider.

eskbanker

Their current terms (para 2.18) do state:

If you close your Cash ISA with Plum or Transfer Out within the 12 month period after opening your Cash ISA account with Plum, you will lose your bonus that is not earned and forfeit any interest earned that month

Was the account definitely open for more than a year when you requested the transfer? If so, challenge them about exactly where in the Ts & Cs they claim the right not to pay interest in the month of transfer…

Babycakes

I have asked them to send me the T&Cs. Just annoyed that this was not made clear when I opened the account or when I asked for the transfer to take place.

They emailed me to let me know that they had received a request to transfer out, but no warning about loss of interest

Babycakes

It is also annoying that I applied for the transfer 2 weeks ago, and that it took 2 weeks to process

masonic

https://forums.moneysavingexpert.com/discussion/comment/81972200#Comment_81972200

It is 3.9 in the terms in force a year ago that they'd rely on:

(edit: this is still included in the current terms)

Albermarle

Plum have good rates, but are a regular topic on this forum due to their various rules and quirks.

Babycakes

As an app based application, so it is harder to read the T&Cs. Furthermore, Plum should be aware that most people do not read the T&Cs, and so should have been made clear to the customer.

I think I am going to make a complaint as this is an unusual contract term, and Plum should make this clear to the customers. They had an opportunity when I applied and another when they received the transfer request, which they took time to process.

masonic

https://forums.moneysavingexpert.com/discussion/comment/81972206#Comment_81972206

You can find the current ones at: withplum.com/api/files/file/Plum%20Cash%20ISA%20Terms%20UK%20-%20March%202026-3.pdf

I have cross referenced them with the November 2024 terms that were still in force in April 2025 and the relevant terms have not changed.

I would always advise capturing T&Cs and as @Albermarle says, this is a case where it was worth being especially careful.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81972212#Comment_81972212

Fair enough, as a non-customer I didn't spot the help page you quoted when having a quick look around their site, which certainly isn't the most intuitive! Re the Ts & Cs extract, that seems to be about withdrawals rather than transfers, or do they clarify they treat both the same?

masonic

https://forums.moneysavingexpert.com/discussion/comment/81972220#Comment_81972220

They had a separate help page on the topic here containing useful information about how to transfer out, including what account number to use and the forfeiture rules: https://help.withplum.com/en/articles/9070552-transfer-cash-isa-out-of-plum

Not reading the T&Cs = "you can do whatever you like to me". Not recommended!

https://forums.moneysavingexpert.com/discussion/comment/81972227#Comment_81972227

The help page is necessary reading, as it is only there you learn you probably need to select Saveable Limited as the provider and use your NINO as the account number. The help section is fairly accessible and well organised, as opposed to their main site which exists to drive traffic to the app.

Plum is an aggregator, so your money is placed into various third party banks. This section of the terms relates to those banks and how you receive interest indirectly from them. To transfer an ISA it must first be withdrawn from those third party banks.