ISA over £75K limit

dave_hendy

My wifes cash ISA is quite a bit over the prottected £75K limit, should we take out the excess or risk looseing the amount over the £75K?? As far as I know you can't move part of an ISA and keep the rest where it is?

This new limit is a pain!

Thanks
Dave

Nick_C

If you want to transfer money you’ve invested in an ISA this current year, you must transfer all of it.

For previous years, you can choose to transfer all or part of your savings.

https://www.gov.uk/individual-savings-accounts/transferring-your-isa

Presumably you are aware that you can probably earn more money outside an ISA. Also, that the first £1000 of interest for BR taxpayers is non taxable from April.

TheTracker

That's a lot of money in a cash ISA. If you need the money in under 10 years you're probably better off outside the ISA wrapper. If you do not, you are possibly better off with a S&S ISA at least for a portion of it, in safe conservative bonds if that suits.

kidmugsy

You can move out part of the money (except that any subscription this tax year must be moved in its entirety).

eskbanker

dave_hendy wrote: »

My wifes cash ISA is quite a bit over the prottected £75K limit, should we take out the excess or risk looseing the amount over the £75K?? As far as I know you can't move part of an ISA and keep the rest where it is?

What sort of ISA is it? If it's an instant/easy access product then the above posts apply immediately, but if it's a fixed term product then there are likely to be Ts & Cs that inhibit withdrawal options prior to maturity.

dave_hendy

It's actually fixed until April 2017. So might have to risk it until then?

Nick_C

dave_hendy wrote: »

It's actually fixed until April 2017. So might have to risk it until then?

You could probably have withdrawn £10K without penalty before 31 December, but you are likely to have left it too late. Check with your provider.

dave_hendy

The Isa is basically my wife's pension so we wanted to just leave it all together, obviously we won't be able to do that.

Will have to check if we can move any of the ISA without too much of a penalty

Sam_J12

I wouldn't worry too much about going a bit over the £75k limit. The probability of savers losing cash in some kind of collapse is extremely small. There are always some fools predicting imminent collapse - just ignore them. Going over it is no big deal, just avoid putting any more money in to it if it bothers you and choose another institution to invest with now.

Many posters here are the most financially conservative people I have ever known.

eskbanker

dave_hendy wrote: »

The Isa is basically my wife's pension so we wanted to just leave it all together

I don't really follow that logic, but the broader issue is whether keeping it in cash form (ISA or otherwise) is prudent if it's intended for the long-term, although obviously we don't know how far away retirement is! If it's still ten years or more, it may be sensible to look into stocks and shares ISAs to benefit from better long term growth potential....

dave_hendy

My wife is mid 40's so probably has more than 10 years to go. I would not risk a stocks and shares ISa again as we lost money once before when we had to take the money out at the wrong time when we needed it.