Advice wanted - trying to work out what to do with ISAs

Abatement

Just looking for some advice really, as I'm struggling to keep on top of ISA portfolio and work out what to do next.

I currently have 21k in cash split across two ISAs - 15k in one paying 1.25%, and 6k in another paying 2.2% (30 days' notice). I've also got £23k in a S&S ISA with iWEB, with another 5k left to subscribe this tax year.

My wife has 23k in cash split across three ISAs - 13k at 1.25%, and 2 x 5k at 0.5%ish (i can't remember exactly, but it's low). She has the full 15k left to subscribe this year.

We've also got a Santander 123 current account maxed out to 20k and a couple of FD regular savers.

I'd really like to get all the ISA holdings consolidated in one or two institutions because it's driving me mad having money all over the place. I'm also not sure what to do with the remaining amounts to subscribe this year.

For simplicity I'm thinking of transferring all of the ISAs to a 2 year fixed rate ISA at Santander for each of us. Then adding my wife's 15k to that, and putting my 5k into my iWEB account.

Does that sound reasonable? I'm not necessarily looking to squeeze every penny out of it, but how much am I sacrificing for the convenience of having it all in one place? And am I going to run into problems with the FSCS?

masonic

Abatement wrote: »

I'd really like to get all the ISA holdings consolidated in one or two institutions because it's driving me mad having money all over the place.

That's a shame because I was going to suggest spreading some of your money around the 5% current accounts.

Does that sound reasonable? I'm not necessarily looking to squeeze every penny out of it, but how much am I sacrificing for the convenience of having it all in one place? And am I going to run into problems with the FSCS?

Moving and consolidating the ISAs should allow you to earn more interest, not less. If you settle for Santander, then you'll compromising vs the best available rate elsewhere.

FSCS pays up to £85k per person per institution for cash, so you are some way off needing to be concerned about that limit. Arguably, very few people should have more than that sitting around in cash long term anyway.

It might bring you out in hives to note that my own cash savings are spread between 7 accounts with 6 different institutions. None of those accounts are ISAs. If you want to secure the best rates that's what needs to be done.

Abatement

masonic wrote: »

That's a shame because I was going to suggest spreading some of your money around the 5% current accounts.


Moving and consolidating the ISAs should allow you to earn more interest, not less. If you settle for Santander, then you'll compromising vs the best available rate elsewhere.

FSCS pays up to £85k per person per institution for cash, so you are some way off needing to be concerned about that limit. Arguably, very few people should have more than that sitting around in cash long term anyway.

It might bring you out in hives to note that my own cash savings are spread between 7 accounts with 6 different institutions. None of those accounts are ISAs. If you want to secure the best rates that's what needs to be done.

Thanks, but yes, you're right - I'm not interested in setting up more current accounts. Appreciate that it's possible to get higher returns by doing that, but I just don't have the time (or self-discipline) to jump through all the hoops and manage it all at the moment. I'd also like to retain the tax benefits of keeping the investments inside an ISA wrapper.

Thanks for the clarification on FSCS.

Archi_Bald

Abatement wrote: »

Thanks, but yes, you're right - I'm not interested in setting up more current accounts. Appreciate that it's possible to get higher returns by doing that, but I just don't have the time (or self-discipline) to jump through all the hoops and manage it all at the moment. I'd also like to retain the tax benefits of keeping the investments inside an ISA wrapper.

Thanks for the clarification on FSCS.

Put all your investments into your S&S ISA. Keep your savings in current accounts. If you need more than £20K in cash and your 123 is full, get a joint 123 with your wife, and/or a 123 in her sole name. You'd need to have a non-Santander source for the monthly £500s, as well as a couple more DDs. Both these things can be resolved very simply with a couple of Tesco savings accounts.

Abatement

Archi_Bald wrote: »

Put all your investments into your S&S ISA. Keep your savings in current accounts. If you need more than £20K in cash and your 123 is full, get a joint 123 with your wife, and/or a 123 in her sole name. You'd need to have a non-Santander source for the monthly £500s, as well as a couple more DDs. Both these things can be resolved very simply with a couple of Tesco savings accounts.

I'm a bit nervous about putting too much into S&S - I didn't mention in my original post that all our pensions are in equity funds, so putting both of our full ISA allowances in this year would leave us quite exposed. Hmm. Maybe I'm worrying too much about that. I'll think about it. Thanks for the advice.

AndyPK

Bring your ISA's together to get a minimum of £24K and you can earn 2% with clydesdale

enthusiasticsaver

I have a 2 year fixed rate isa with Santander maturing 1.5.15 earning 3.1% but don't think that they will be offering a new 2 year fixed rate earning that. The Coventry BS 4 year isa which I opened last October is offering a higher rate than both of yours 2.4% but not sure if it accepts transfers in but your wife might like to consider that for this years allowance. You can get it out with a 60 day penalty.

Abatement

AndyPK wrote: »

Bring your ISA's together to get a minimum of £24K and you can earn 2% with clydesdale

which product is that?

eskbanker

enthusiasticsaver wrote: »

The Coventry BS 4 year isa which I opened last October is offering a higher rate than both of yours 2.4% but not sure if it accepts transfers in but your wife might like to consider that for this years allowance. You can get it out with a 60 day penalty.

Their current product (issue 25) isn't as appealing - it pays 2.25% (until November 2018), doesn't allow transfers in, early closure subject to a charge of 120 days' interest on the closure balance and partial withdrawals not available before maturity.

AndyPK

Abatement wrote: »

which product is that?

http://www.cbonline.co.uk/personal/savings/tax-efficient-savings/cash-isa-40-day-notice/