Transferring from Cynergy ISA

truescot

This is a really simple question but I couldn't find it in the terms document for my Cynergy Online ISA Issue 67 and the helpline is closed. I am consolidating 2 cash ISAs into one (Plum easy access) but what happens with the interest i have accrued on my Cynergy ISA? I will transfer the current balance to Plum but will the interest automatically be added and included to the amount transferred?

refluxer

If you want the full amount in the Cynergy ISA transferred (plus any interest due) and the account closed, you would need to request that Plum do a full transfer - don't request that a specific amount should be transferred, as this would be a partial transfer and the Cynergy account will remain open and the interest due won't be credited.

If Plum do ask for an amount when requesting a full transfer, this is usually for info purposes only so you could either give the current balance or an estimate of what you think it should be, including the interest.

One scenario where you need to be careful is when the ISA account you're transferring from has a bonus element to the interest and the account needs to be open for a certain length of time (often a year) in order to get that bonus interest, but I don't think the Cynergy Online ISA falls into this category ?

truescot

Ok so my Cynergy account is now closed (although no notification, it just disappeared from the app 2 days ago). But the money has not appeared in my Plum account. Anyone know how long this should take? Is this the part that can take up to 15 days? Its a bit disconcerting not knowing where the money is…

refluxer

https://forums.moneysavingexpert.com/discussion/comment/82193801#Comment_82193801

There are obviously delays when ISA funds are sent via cheque between providers as you're relying on the post but delays can sometimes occur even when funds are transferred electronically because ISA transfers require human input at each end (the process isn't wholly automated), so you're more reliant on things like working hours or whether a provider processes payments over a weekend (not all do).

Plum appear to only accept electronic transfers (so it's not the post that's holding things up) but I don't think they use the (commonly used) BACS ISA transfer service, although I don't know if this would have a bearing on transfer times.

The 15 day guidance for cash ISA transfers is for the whole transfer process, so the timer starts from the day the transfer request is received. I've had online transfers completed with 1-2 days in the past, but some can take longer so I would sit tight for at least another day or two. In theory, interest should be back-dated to the date your the money left your Cynergy account so you shouldn't lose out.

refluxer

Incidentally - hopefully you've read the small print for the Plum account ? T&Cs/offers can change, but you usually need to keep a Plum cash ISA open for a year to receive the bonus interest and you only get the headline rate for new ISA subscriptions (not transferred-in funds, like you're doing). Their current rate is 4% for transferring in (which isn't great) and you'd get substantially less than that if you transfer away within 12 months.