What to do with Cash ISA/Savings?

Phil_05_UK

Hi there,

Just looking for some advice, I bank with Lloyds TSB and currently have nearly 30K in a Cash ISA and £26200 in an Online Saver (Both with Lloyds TSB)

I haven't put any money in my Cash ISA this year yet, but what is the limit you can put into your Cash ISA this year? & is it ok to have more than 30K in a Cash ISA? or should I open another account elsewhere?

Regards

Phil.

Mickygg

The limit this year for 2010/2011 has increased to £5,100 for a cash ISA. You can rack up as much as you like in a cash ISA as long as the maximum allowed only is put in each year.

Phil_05_UK

Thanks Mickygg

My concern is what is the maximum you should have in any one bank or Cash ISA?

Should you go over 30K in one Cash ISA?

Between my Lloyds Cash ISA and Lloyds Online Saver I have about 56K

Should I open another bank account elsewhere? What's the best way of splitting this so I don't have too much in one bank but still get good interest?

GlasWolf

Maximum of £50k with any one institution to stay under the FSCS limit, same as any other savings account.

robbieroy

Phil
You might want to check what rate you are getting on you existing cash ISAs (check here: http://www.lloydstsb.com/rates_and_charges/savings_rates_link_page.asp)
If the rates are low the you might consider transferring them (not closing the accounts or withdrawing the money) to another ISA provider. You can get a tranfer form from your new provider. I was in the same position as yourself and found that my old cash ISAs were earning as little as 0.1% AER.
See ISA transfer article here... http://www.moneysavingexpert.com/savings/cash-isa-transfers
RR

Phil_05_UK

Ok, i have £29773.56 in a Lloyds TSB Cash ISA, account was opened before the 21/02/2010 so the interest rate is 1.00 AER/tax-free (per annum)%

If I transfer it all to Nationwide who allow transfers (if you have a current account with them which I can open but don't have to use), can i still put in £5100 this year or should I put another £5100 into Lloyds ISA and then transfer it?

Are there any known penalties for transfering between Lloyds TSB and Nationwide

robbieroy

If I transfer it all to Nationwide who allow transfers (if you have a current account with them which I can open but don't have to use), can i still put in £5100 this year or should I put another £5100 into Lloyds ISA and then transfer it?

You can transfer it all to Nationwide AND open an ISA for 2010/11 with ANY provider you choose. I tranferred my existing ISAs to Nationwide but will subscribe to a new ISA with Barclays (3.1% AER)

Are there any known penalties for transfering between Lloyds TSB and Nationwide

Not as far as I know. Just make sure you complete the transfer forms from Nationwide and they will do the rest. You will need to remember that the rate from Nationwide is only effective until June 2011 so you should move your lump sum again when it matures after a year or in June
Hope this helps
RR

robbieroy

Phil
You might also consider taking out a longer term fixed term ISA with a higher rate:
for example, Two years, 3.5% AER and Three years, 3.9% AER This would be useful if you do not need access to the money.
See: http://www.moneysavingexpert.com/savings/cash-isa-transfers
and look under the section Top Fixed Rate Accounts