Over £35000 in Cash ISA

Comfortably_Numb

I currently have just over £35000 in the Lloyds TSB fixed for a year ISA. I'm sure that at the end of the fixed rate I'll have to move it to get a decent rate, but I'm a bit concerned with it all being in one place now I've reached this amount.

If I want to transfer it at the end of the year, is it possible to split it between two best payers, or does the whole lot have to go in total to only one new organisation?

Thanks.

flossy_splodge

Yes you can split the money but only AFTER the end of the year it was deposited. Similarly you can split money in any previous years Cash ISA, just not THIS year's yet. After April 6th 2009.:T

Comfortably_Numb

flossy_splodge wrote: »

Yes you can split the money but only AFTER the end of the year it was deposited. Similarly you can split money in any previous years Cash ISA, just not THIS year's yet. After April 6th 2009.:T

Thanks. Does that mean I go to two new organisations, and ask them to take a certain amount each?

I presume I would ask No 1 to transfer £15000, and No 2 to take the rest, including interest.

Lokolo

Yes. But only some ISAs will accept partial transfers so keep an eye out for this.

Comfortably_Numb

Lokolo wrote: »

Yes. But only some ISAs will accept partial transfers so keep an eye out for this.

Thanks. I will have to do a little reseach nearer to April.

danielinto

Also, you might want to think about the timing of this as you are only allowed to open one cash ISA per year, so, unless you want to leave some in your current ISA and move the rest to the new one, you will have to open one before the end of the tax year to transfer all of this years contributions plus however much you wish to transfer from previous years and then open a 2nd one in the new tax year and transfer the rest.

Hope that helps!

Paul_Herring

How likely do you think LTSB are going to go bankrupt?

AirlieBird

danielinto wrote: »

Also, you might want to think about the timing of this as you are only allowed to open one cash ISA per year, so, unless you want to leave some in your current ISA and move the rest to the new one, you will have to open one before the end of the tax year to transfer all of this years contributions plus however much you wish to transfer from previous years and then open a 2nd one in the new tax year and transfer the rest.

Hope that helps!

Not correct. You can open as many as like as long as all the money deposited in this tax year is in the same ISA. An ISA that only receives a transfer of previous years deposits does not count towards the "one-ISA-a-year" rule

Comfortably_Numb

Paul_Herring wrote: »

How likely do you think LTSB are going to go bankrupt?

I'm pretty confident they are safe for the foreseeable, but I'm sure their leading rate will drop next year, and I suppose wherever the best rates are then are also unlikely to go down the pan.

However, I often see advice about spreading savings to avoid the possibilty, once over £35,000.

Do most people spread it, or am I falling foul of unnecessary scaremongering?

Paul_Herring

Comfortably_Numb wrote: »

or am I falling foul of unnecessary scaremongering?

Do you read (or more pertenantly believe) the editorial (or otherwise) content coming out of the DMGT group? (Which includes their website.)

Clearly I'm biased against them and would have to answer 'yes' to your question.



(Specifically, I don't yet hold £35K yet with any individual institution other than the company holding my pension fund (they're excluded anyway,) but am likely to hit that limit with a certain Icelandic bank soon. I don't plan on specifically moving cash purely because of this £35K limit.)

dunstonh

LTSB are one of the most secure banks in the UK. By the time they go down, virtually every other bank would have to have done so we would be living in anarchy then and getting used to a middle ages lifestyle.

Do most people spread it, or am I falling foul of unnecessary scaremongering?

You are falling for the media driven scaremongering I'm afraid.