Chip Smart Cash ISA - Beware this condition...

arcnet

https://forums.moneysavingexpert.com/discussion/6669193/chip-smart-cash-isa-beware-this-condition

At the very least, 11 days' interest would be forfeited because they pay interest on the 10th working day for the previous month. At worst this could rise to 44 days' of interest if the transfer went ahead on the 9th working day of the month. Ouch!

sdm1985

Any experience with Nationwide ISA? Rate is good for the 1 year fixed. Is it a flexible ISA?

I need to sort mine, as already losing money on Chip.

tasty_snacks

I previously used CHIP as an intraday liquidity net to keep my current accounts as close to zero as possible. Previously with the old CHIP ISA the deposits and withdrawals were genuinely instant, which fully enabled this. The one day delay doesn't work for purpose I need, so will have to move elsewhere now which is a shame, because the instant nature of the transfers is not something I've found elsewhere yet.

w0z

Further thought, there is a "workaround" to *minimise any potential interest loss.

My understanding is (and please correct me if I'm wrong)…

The ISA is flexible, so any funds (up to the amount subscibed in the tax year) removed in the tax year in which they were originally subscibed, will not count towards your ISA allowance for that tax year, thus flexible funds withdrawn can be deposited in a new ISA as long as you ensure you have not subscibed more than your annual allowance in the tax year.

(Worst case is losing ISA status on any previously accrued interest withdrawn which would take you over your allowance, so if for example you started with £20k cash subscription and over 10 months, did very few transactions or most of the cash was in the ISA for most of the time and,(for example), you accumulated (say) £543 interest, but you withdrew £20,542 , you would only be able to contribute £19,999 to the new ISA you opened, as you had left £1 of your flexible allowance in the Chip ISA

The "workaround" is to withdraw all the funds but for £1, and wait for the next interest payment which you will then either withdraw or transfer out (*you'd be losing very little interest on a transfer out as the balance would be low at that point).

SteveP62

I switched my cash isa to the Smart Cash ISA, but am now trying to transfer it out to another provider, but I’m struggling.

Most providers ask for the sort code and account number when requesting a transfer, but the Smart ISA only has a reference number.

I’ve now tried 2 other providers, but they have both said they can’t request the transfer with sort code and account number

Is anyone else having this issue, and has anyone managed to successfully transfer out?

w0z

"but they have both said they can’t request the transfer with sort code and account number"

Did you mean without a sort code and ac no?

Their electronic systems may not be able to cope because they may be wrongly configured but that doesn't mean it can't be done and are they should process the transfer manually despite their protestations (which incidentally are nonsense, sounds like the computer says no).maybe you haven't managed to speak to the right person yet.

Their systems should be set up to allow filling in only a reference field capable of accepting an ad-hoc alphanumeric reference when there is no account no and sort code; it's not uncommon for ISA providers to assign a reference number or a non "standard" alphanumeric reference to an ISA, I had one which used my N.I. number as a reference) (Chip strangely use an account reference for their smart cash ISA in the form of ABCD-E12F-GH3. although why anyone would use dashes in a reference number is beyond me, maybe to reduce human transcription errors)

There are various ways to proceed depending on the provider,.Have you suggested filling out a paper transfer form? The only disadvantage is it may take longer to complete compared to the standard electronic transfer system which can be very fast. (I've had one complete in a day but usually around a week or less)

Who are the providers?

From their help section

As an aside:

As far as I know (but do check), IF the Chip ISA - is a flexible ISA any funds contributed in this tax year should be able to be withdrawn as cash without it counting toward this year's contributions. You can then contribute it as new money to a different ISA provider.

sdm1985

Anyone transferred out from Chip recently? If so, how long did it take? I want to be out by 10/07. Managed to get 4.6 T212

winkowinko

Looks like Chip have done away with the max 3 withdrawal rule.

You do however lose that month's unpaid interest if you transfer out.

Jom60

Is Chip Smart Cash Isa set up to iintentionally impede or hamper the request to transfer to another ISA Provider?
I am having issues with transferring my Smart Cash Isa to another provider from Chip.

I requested a transfer to Cynergy and incorrectly initially asked that part of my savings be transferred unaware Chip do not support this so it was rejected.

Chip subsequently said Cynergy needed to cancel the request on their isa transfer solution provider and confirmation be sent to them before another transfer request could be actioned.

When I contacted Cynergy they informed me the request had been rejected so there was no need to cancel. I decided not to go forward with this mainly because I didn’t want to waste any more of my time corresponding between them on this issue.

I opened an ISA with Charter Savings and requested Chip transfer my ISA using their reference as their is no sort code or account number that appears to be linked to the Smart Cash Isa account.

Charter advised me this was rejected by Chip as the reference was unknown.

When I contacted Chip and advised them of this, their response was to inform me the Smart ISA is listed under Chip Financial (Investments) Ltd, and I should provide screenshots of how Chip is appearing on the new providers end…I do recall their were 2 options when I requested the initial transfer solution and I was unsure which to select.

I did get a bit frustrated at this point and asked Chip to supply the exact

Name of Chip Account and Sort Code/ Account number, Reference/Roll Number.

Chip have been unable to provide this to me to date, I have raised a complaint.

Is Chip Smart ISA intentionally set up to impede/ hamper the transfer process?