ISA about to reach £85K - what should I do?

LJH149
LJH149 Posts: 6 Forumite
in Savings & investments
When this year's interest is added my ISA will go over the £85K mark.
Is it possible to split it and transfer 50% to two new ISA accounts, or can I only transfer the whole amount to one new ISA?
Obviously I want to spread my money to keep it safeguarded, but without having to withdraw the money and lose the tax free status. Appreciate your help, thank you in advance.
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Comments

  • MallyGirl
    MallyGirl Posts: 6,617 Senior Ambassador
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    I thought the compensation limit for investments was only £50k so you have already exceeded it
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  • talexuser
    talexuser Posts: 3,499 Forumite
    Name Dropper First Post First Anniversary
    The OP may have a cash ISA?
  • LJH149
    LJH149 Posts: 6 Forumite
    MallyGirl wrote: »
    I thought the compensation limit for investments was only £50k so you have already exceeded it

    It's £85k. Check out the Isa section on this site (I'm not allowed to post the link)
  • LJH149
    LJH149 Posts: 6 Forumite
    talexuser wrote: »
    The OP may have a cash ISA?

    What's the OP?
    The question is more about can I transfer one cash ISA into two new ones.
  • Lungboy
    Lungboy Posts: 1,953 Forumite
    First Anniversary First Post
    OP means Original Poster, the person that started the thread (ie you in this case).
  • AirlieBird
    AirlieBird Posts: 1,046 Forumite
    edited 8 March 2018 at 5:11PM
    Yes you can split up your ISA, subject to the terms of your ISA. (Some don't allow partial transfers, in which case you just transfer the whole lot to somebody that does). You can have as many ISAs as you want for previous tax year deposits. You must hold any money put in during the current tax year in the same ISA. Just remember to use the ISA transfer process
    Did you really mean to put loose?
    Lose: no longer possess, not to retain, unable to find
    Loose: not firmly or tightly fixed in place
  • capital0ne
    capital0ne Posts: 872 Forumite
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    Make sure the new ISA provider(s) initiate the transfer(s) - DO NOT withdraw the ISA funds and pay into a new ISA as this will lose ISA status once withdrawn and will use up your ISA allowance when it goes into a new one. But I'm sure you know that. Good Luck
  • thenewcomer
    thenewcomer Posts: 146 Forumite
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    LJH149 wrote: »
    It's £85k. Check out the Isa section on this site (I'm not allowed to post the link)

    is this only for cash ISA? not for investment related ISA?
    Aim to retire by 45.
  • ValiantSon
    ValiantSon Posts: 2,586 Forumite
    thenewcomer wrote: »
    is this only for cash ISA? not for investment related ISA?

    FSCS protection of £85,000 applies to savings, e.g. a cash ISA.

    FSCS protection of £50,000 applies to investments, e.g. a S&S ISA.

    The two protection schemes are quite different.
  • jimjames
    jimjames Posts: 17,611 Forumite
    Photogenic Name Dropper First Anniversary First Post
    LJH149 wrote: »
    When this year's interest is added my ISA will go over the £85K mark.
    Is it possible to split it and transfer 50% to two new ISA accounts, or can I only transfer the whole amount to one new ISA?
    Obviously I want to spread my money to keep it safeguarded, but without having to withdraw the money and lose the tax free status. Appreciate your help, thank you in advance.

    If you have that much in the ISA, do you need it all to be in cash? Splitting some of it into S&S ISA would get you under the limit and increase potential returns and income
    Remember the saying: if it looks too good to be true it almost certainly is.
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