Chip Smart Cash ISA - Beware this condition...

ScoobyZ

jJst managed to cancel a transfer to chip after reading some bad reviews on trust pilot.

One was about this interest loss and another saying taking ages to leave. I’m guessing they can delay to get maximum interest withheld.

w0z

The electronic ISA transfer system does not delay, in fact when it works which is most of the time, transfers can finalise in 2 days.

There may be instances where there have been delays due to manual intervention being necessary (for many reasons) but, and it's only my opinion, I think it's highly unlikely that Chip are deliberately delaying transfers.There will (I hope) be more instances of transfers happening quickly, (one already confirmed in a previous post). That would tend to indicate no deliberate delay.

Just to add I have no skin in the game as I've decided for the moment not for the moment to fund my ISA

I would just add that if you have some cash in the ISA on which you are able and prepared to lose the ISA wrapper status* and/or better still you have some allowance left which you can use, the loss of interest can be mitigated by withdrawing all but £1, and leaving the account until the interest is paid. It's a very niche way of avoiding the loss of interest and you have to be in a position to be prepared to lose the ISA status on that cash *which will still count towards your annual ISA contribution. Also it isn't a one way deal, if you change your mind you can always put the cash back into the ISA (in the same tax year) as it's flexible.

(*Of course I'm not recommending that course of action as it will only suit very few people, but it is a way around the loss of interest)

winkowinko

I dunno. Their decision not to pay interest for the month in which you transfer out seems like a calculated one. The only people who stand to gain from it are them. You have to wonder why else they have now inserted this new clause.

Maybe all transfers are completed within a couple of days, and the only people who get caught out are those who haven't read the T's and C's and haven't waited until just after the 10th working day of the month before initiating the transfer. In which case it's fair enough, even if a little sneaky.

Do I want to risk opening an ISA with them right now? Not really.