ceejay
Posts: 975 
Likes: 1,149
|
Post by ceejay on Apr 18, 2019 9:21:47 GMT
Its one month notice not 3 months Just to be clear: you can't withdraw in the first three months, after that it's one month's notice. Then subject to liquidity (as usual) and "in our discretion" (not so usual - it would be interesting to know what this means). The 1% fee to withdraw feels a bit high - if you wanted your money back in, say, 6 months you'd be taking roughly a 2%pa hit. So best to think of that as being a handy emergency exit from what you ought to consider as a fixed one year investment. What makes me hold back at the moment is that this will (apparently) be the only offering you can have in their ISA wrapper - so, if after a year you decided you wanted this money to be a bit more flexible, you'd have to go through the hassle of doing an ISA transfer rather than shifting it over to their monthly product. That seems like a shame. The fact that it's a flexible ISA goes only a small way to addressing this issue (you could withdraw the money after the year, shove it into their monthly product or indeed anywhere else for a few months, and then put it back - but only to start another one year clock).
|
|
ceejay
Posts: 975
Likes: 1,149
|
Post by ceejay on Apr 18, 2019 9:24:31 GMT
According to the email, they are extending the 2% bonus for new funds till 30th April, to include this product. Does that tip any hats in their favour? Sorry 'bout that, please ignore. The term extension does not apply to the currently non-offered ISA product. But had they offered to take a deposit and then have that transferred into the ISA to qualify....? Does anyone know if this is possible via lending new funds @ 5.3% for (say) two months, then moving that into the ISA? (I think that might be effective.) from their email: "... you'll be able to transfer the funds across to your new ISA account and still be eligble for your bonus..."
|
|
IFISAcava
Member of DD Central
Posts: 3,692
Likes: 3,018
|
Post by IFISAcava on Apr 18, 2019 9:27:37 GMT
According to the email, they are extending the 2% bonus for new funds till 30th April, to include this product. Does that tip any hats in their favour? Sorry 'bout that, please ignore. The term extension does not apply to the currently non-offered ISA product. But had they offered to take a deposit and then have that transferred into the ISA to qualify....? Does anyone know if this is possible via lending new funds @ 5.3% for (say) two months, then moving that into the ISA? (I think that might be effective.) First, it doesn't help those of us who were planning on transferring previous years' funds in and not using the new ISA allowance on Growth Street. And second, since I don't want to invest in any non-ISA income generating products at the moment (as my marginal tax rates are punitive), it doesn't help me at all. Actually, reading the small print, it would be possible to put say £10,000 cash there and not invest (for me) or invest on rolling monthly (if you have reasonable tax position) Then transfer in from previous years' ISA funds £10,000 Then withdraw the cash/rolling. That should mean your additional investment total remains at £10,000 throughout. And that would give you 7.8% for the year (5.8% + 2% bonus) at the cost of a couple of months cash drag (with low rates on cash at the moment that should only reduce the return by a few tenths of percent)
|
|
IFISAcava
Member of DD Central
Posts: 3,692
Likes: 3,018
|
Post by IFISAcava on Apr 18, 2019 9:31:20 GMT
First, it doesn't help those of us who were planning on transferring previous years' funds in and not using the new ISA allowance on Growth Street. And second, since I don't want to invest in any non-ISA income generating products at the moment (as my marginal tax rates are punitive), it doesn't help me at all. Actually, reading the small print, it would be possible to put say £10,000 cash there and not invest (for me) or invest on rolling monthly (if you have reasonable tax position) Then transfer in from previous years' ISA funds £10,000 Then withdraw the cash/rolling. That should mean your additional investment total remains at £10,000 throughout. And that would give you 7.8% for the year (5.8% + 2% bonus) at the cost of a couple of months cash drag (with low rates on cash at the moment that should only reduce the return by a few tenths of percent) And all tax free - grossed up at 45% the equivalent is 14.2%, at 20% it's 9.75%.
|
|
|
|
Post by dan1 on Apr 18, 2019 9:41:52 GMT
"in our discretion" - to me this negates the benefit of 30 day access because I guess it's designed to prevent withdrawals in the case of a run on the platform? I'd only regard this product as a true long term holding and one that's at greater risk of rising interest rates. Even so, perhaps worth a punt for those in the higher tax bands.
|
|
|
|
Post by nesako on Apr 18, 2019 9:52:47 GMT
First, it doesn't help those of us who were planning on transferring previous years' funds in and not using the new ISA allowance on Growth Street. And second, since I don't want to invest in any non-ISA income generating products at the moment (as my marginal tax rates are punitive), it doesn't help me at all. Actually, reading the small print, it would be possible to put say £10,000 cash there and not invest (for me) or invest on rolling monthly (if you have reasonable tax position) Then transfer in from previous years' ISA funds £10,000 Then withdraw the cash/rolling. That should mean your additional investment total remains at £10,000 throughout. And that would give you 7.8% for the year (5.8% + 2% bonus) at the cost of a couple of months cash drag (with low rates on cash at the moment that should only reduce the return by a few tenths of percent) Yes, taking into account bonus, 7.8% is a good tax-free deal (I am a higher tax payer, so more so to me), at least for that one year! Did you verify with GS this "trick" will work? They have first extended the offer until 15th May and then reduced it back down to 30th April, so I am a bit concerned they have changed their mind on allowing bonus on new ISA money.
|
|
IFISAcava
Member of DD Central
Posts: 3,692
Likes: 3,018
|
Post by IFISAcava on Apr 18, 2019 10:25:31 GMT
Actually, reading the small print, it would be possible to put say £10,000 cash there and not invest (for me) or invest on rolling monthly (if you have reasonable tax position) Then transfer in from previous years' ISA funds £10,000 Then withdraw the cash/rolling. That should mean your additional investment total remains at £10,000 throughout. And that would give you 7.8% for the year (5.8% + 2% bonus) at the cost of a couple of months cash drag (with low rates on cash at the moment that should only reduce the return by a few tenths of percent) Yes, taking into account bonus, 7.8% is a good tax-free deal (I am a higher tax payer, so more so to me), at least for that one year! Did you verify with GS this "trick" will work? They have first extended the offer until 15th May and then reduced it back down to 30th April, so I am a bit concerned they have changed their mind on allowing bonus on new ISA money. I haven't verified it, but the T&Cs clearly state that you have to "increase your total investment on the platform" and that this means your ‘Current Balance’ which includes cash. I may check direct.
|
|
pom
Member of DD Central
Posts: 1,922 
Likes: 1,244
|
Post by pom on Apr 18, 2019 10:35:39 GMT
Perhaps they changed the end date to 30th Apr because they're planning a new offer to cover one/both accounts, which would have to have different Ts&Cs (because ISAs now involved) from 1st May? One can hope anyway.
|
|
|
|
Post by nesako on Apr 18, 2019 18:13:30 GMT
Perhaps they changed the end date to 30th Apr because they're planning a new offer to cover one/both accounts, which would have to have different Ts&Cs (because ISAs now involved) from 1st May? One can hope anyway. Yes, that was my thinking as well, let's see what happens as this should be announced most likely as soon as next week
|
|
puddleduck
Member of DD Central
Posts: 537
Likes: 489
|
Post by puddleduck on Apr 20, 2019 10:11:49 GMT
Thanks everyone for the additional thoughts - I think I probably won't go for this now.
|
|
