CASH ISA >£35K -what should I do ?

n0p

I have a cash ISA which has built up over the years to in excess of £35K.

I am a high rate tax payer (and also have cash in high rate savings accounts) I like that fact the the ISAs are 'tax free' savings, however how can I ?
a) still gain interest tax free saving and b) protect my money which is above the £35K 'protected' theshold?

Or is the answer as simple as I can't just start again ??

Lokolo

Northern Rock are fully protected yes.

Where is the £35k? To be quite honest, no bank is going to fall (especially stable ones such as HSBC and Lloyds, B&B, HBOS).

Um the £35k isn't £35k + interest not paid either. Most crazy scared people put £30k in, as any interest not paid to date will still be protected upto the £35k.

Hungerdunger

n0p wrote: »

Or is the answer as simple as I can't just start again ??

The answer is as simple as: "Just stop worrying". You're probably as likely to be hit by a bus tomorrow as you are to lose your savings, but you're not sitting there worrying about being hit by a bus. Are you?

Jumping_Bean

Just open another ISA with a different provider and transfer anything over £35K into there? Then carry on saving in that one. Or have I missed something fundamental in what you're asking?

Baldur

n0p wrote: »

how can I ?
a) still gain interest tax free saving and b) protect my money which is above the £35K 'protected' theshold?

You are allowed to transfer partial previous tax years' (or whole current tax year's) Cash ISA funds at any time, under the HMRC guidance (see Chapter 11).

Just select a new ISA provider (see HERE for information on those which accept inward transfers) and complete their transfer form - ensure that your chosen one permits partial transfers, as some do not.

bluebell_lily

n0p wrote: »

I have a cash ISA which has built up over the years to in excess of £35K.

I am a high rate tax payer (and also have cash in high rate savings accounts) I like that fact the the ISAs are 'tax free' savings, however how can I ?
a) still gain interest tax free saving and b) protect my money which is above the £35K 'protected' theshold?

Or is the answer as simple as I can't just start again ??

Today, on the news, it was stated that from Tuesday 7 October 2008, the threshold would be raised to £50K. :rotfl: