Cash ISA with instant withdrawal

epm-84

https://forums.moneysavingexpert.com/discussion/comment/82030584#Comment_82030584

You can't. I transferred to Virgin Money last week. Once I selected Chip as the current provider from the drop down there wasn't the option of partial transfer. I imagine not every ISA provider will have a form which automatically updates to remove the partial transfer option if you state Chip. He/she may find the transfer gets rejected, or that Chip transfer everything if he/she fills out the form Chip send to confirm the transfer.

Also worth remembering with any partial transfer you unincurred interest doesn't transfer, so while the balance might be £1 after the transfer out, but on the next interest payment date it'll increase to the relevant amount.

epm-84

https://forums.moneysavingexpert.com/discussion/comment/82030585#Comment_82030585

I'm not a financial expert but I'm sure Martin Lewis has talked about being allowed to leave mobile contracts penalty free if the terms change mid contract. I wonder if that would apply to ISAs which have terms defined.

molerat

https://forums.moneysavingexpert.com/discussion/comment/82030562#Comment_82030562

Tesco is pretty much instantaneous transfers out.

cmgurney

https://forums.moneysavingexpert.com/discussion/comment/82030562#Comment_82030562

I have re-read the email and I think you are correct. It is transfers in that are no longer allowed, not deposits. Though why anyone would want to transfer in at 1.06% is beyond me! The app is now live again, so I used the add money function to move the £2k back in. Chip informed me that there was not enough money in my bank account to make the payment although there was. Now the Chip app is showing the money has been added to the ISA but my bank account is not showing a withdrawal. A win-win situation if it lasts😂I will look again tomorrow to see if the transfer actually took place. UPDATE I looked at Chip again and the £2k was no longer there. I tried to add money again and got the same message that there was not enough money in my bank account. I think they are just putting up a random error message when they block deposits.

MeteredOut

https://forums.moneysavingexpert.com/discussion/comment/82030587#Comment_82030587

Thanks, I did the partial transfer to CMC, and their form did allow the selection of it, even after choosing Chip, so I'll see what happens.

I don't have much left in the ISA balance, so any lost interest will be immaterial.

roked

https://forums.moneysavingexpert.com/discussion/comment/82030582#Comment_82030582

Why are you locked in for 12 months? I cant see that anywhere. The only gotcha thing is the unpaid interest part which means they will keep the interest gained between the 10th of the month and when ever you close / transfer it.

Personally its the loss of instant withdrawals that is a bigger thing for me, especially when its the weekend & bank holidays and you have to wait for a working day.

cmgurney

https://forums.moneysavingexpert.com/discussion/comment/82030704#Comment_82030704

Apologies. When they first launched the Smart ISA you had to keep the money in for a year or lose the interest but I see from comments on Reddit that they recently changed it to monthly interest.

confederated

I have a Chip Cash ISA. Initially I thought their new Smart Cash ISA would fit the bill so transferred my savings into that. Thinking about it decided to open a Trading 212 Cash ISA. Given I only have around £6K in the Chip ISA I decided to withdraw the funds to my current account and add it to Trading 212 manually rather than going through the ISA transfer process. I set the withdrawal in motion yesterday, and it says to wait until the next working day to receive the funds. THAT is the reason I'm moving elsewhere. My cash ISA is a repository for spare cash and I need instant access to it if I want to pay for something.

danco

Is the next working day just a Shortt-term issue while they are moving people over, or is it permanent? Certainly the old cash ISA withdrawals took only a few minutes.

MeteredOut

https://forums.moneysavingexpert.com/discussion/comment/82030567#Comment_82030567

The Chip App still has the option to add funds today (though I've not tried it) so, on the face of it, it looks like we can still redeposit any flexible funds previously removed and it is just the ability to transfer in that has been inhibited. That now only allows transfer between Chip accounts.