Increase in fscs protection scheme?

No_worries

Hi - I've not been here for ages and apologise if there's a hot thread elsewhere which I couldn't find BUT....
Is there any news of the £85,000 protection limit being raised? The new ISA limits from July mean it will be very easy to reach or exceed the £85,000 limit for those who have topped up efficiently each year to the max. No point the Govt offering a higher ISA allowance if it can't be protected?

Stompa

No_worries wrote: »

No point the Govt offering a higher ISA allowance if it can't be protected?

But it can still be protected by using multiple providers.

grey_gym_sock

if necessary, you can split an ISA by making partial transfers. the current tax year's contributions have to be kept in 1 place, but earlier years can be split up as many times as you like.

i reckon a few ppl will have over £85k total in cash ISAs already now (if they've put the maximum in every year, and never taken anything out).

innovate

I would say the FSCS limit will definitely be increased shortly before or after hell freezes over. The only reason it is not lower than £85K is that the protection in EU countries is €100K and the UK didn't want to be seen as the poor relation. There isn't enough in the FSCS fund for the failure of a big bank, although the Government would probably provide a loan to the FSCS members if it were needed.

dunstonh

The FCA, FOS and FSCS levies already eat too much money. Those costs get passed on to the consumer. The FSCS levy I have had to pay nearly doubled this year and there is usually some add on levies for other companies in default that come in later in the year.

The level of protection has to be sensible and affordable.

No_worries

Thanks - so if I've put £5940 into my current (and only) ISA this year (as in 10th April) then in July when allowance increases to £15000 I can put the balance £9060 into A N Other provider?

Archi_Bald

Only if you are talking about both, a cash ISA (e.g. in April) and an S&S ISA (e.g. in July). Or if you do a proper ISA transfer of the entire £5,940 to a different provider first - in which case, you can then deposit the £9,060 with that different provider as well.

gadgetmind

dunstonh wrote: »

The FCA, FOS and FSCS levies already eat too much money.

Yes, perhaps they do, and some of their policies and decisions do seem a trifle Alice in Wonderland, but having invested through the cowboy decades of the 80s and 90s, I'm jolly glad that we now have such organisations.

JGal

Archi_Bald wrote: »

Only if you are talking about both, a cash ISA (e.g. in April) and an S&S ISA (e.g. in July). Or if you do a proper ISA transfer of the entire £5,940 to a different provider first - in which case, you can then deposit the £9,060 with that different provider as well.

I appreciate this is going off topic of the original post but I've just opened a new ISA with a different provider to my existing one, into which I have already paid in the current maximum. I've only done a part transfer to the new one as they insist that you can only pay into one ISA in a year so when the limit increases next month I can only use that to contribute to my previous ISA. This is why I did not do a full transfer. I would have preferred to have done a full transfer and top up the new one in July. If anyone thinks I have been given incorrect info I'd appreciate a link to correct information.

Archi_Bald

You are off topic, yes, and you would be better starting a new thread to ask your question. You need to provide exact dates and amounts for your deposits and transfers for anyone to be able to respond sensibly.

JGal

Archi_Bald wrote: »

You are off topic, yes, and you would be better starting a new thread to ask your question. You need to provide exact dates and amounts for your deposits and transfers for anyone to be able to respond sensibly.

My post was a continuation of a thread that had already gone OT and was partly to question your post "..Or if you do a proper ISA transfer of the entire £5,940 to a different provider first - in which case, you can then deposit the £9,060 with that different provider as well."

IMHO I gave sufficient information in the scenario for the point to be responded to.