Maximising income with only a couple of new accounts

nushnush

bigadaj wrote: »

You don't appear to understand what you have invested in which is a little worrying.

You are either getting no interest on uninvested money, or 2% return on an investment within which your capital is at risk.

As to whether the cash is covered up to £50k or £75k seems to be a point for discussion, though hopefully the average person would above nowhere near this amount in this product.

Please note the fscs protection for investments is effectively just against fraud and the platform going bust which would leave your underlying investments intact but needing to be managed by another broker.

Hopefully you do understand what you have invested in and have expressed it poorly, in my understanding at least.

i am receiving 2% on all uninvested funds, i fully understand my investments. if it was invested (which it cannot be yet as debentures are not allowed inside an ISA yet) then my cash would be at risk, also as it is a flexi ISA my cash is now earning maximum available in uk bank current accounts. with a flexi ISA you can withdraw the cash so long as you put it back in in the same financial year. thats what i am doing. i am not the best with words so maybe you could fully read the FAQ page and that would explain better

nushnush

should of added this link to the isa page, it helps it all make sense

https://www.abundanceinvestment.com/how-it-works/innovative-finance-isa/

masonic

nushnush wrote: »

i am receiving 2% on all uninvested funds

Not those flexibly withdrawn, presumably.

On the subject of FSCS protection, clearly it is not relevant to money that you have flexibly withdrawn, and the situation is clear on cash held on deposit, but what is still a very big grey area IMHO is the risk of being unable to replace flexibly withdrawn subscriptions should a provider go into default. For this reason alone, I would avoid using an IF ISA for the purposes of flexibly withdrawing subscriptions - cash ISA from a major bank does the job just as well.

redux

pyrex wrote: »

The idea of opening as many current accounts as you can is interesting and creative. My country of citizenship, however, requires me to report information each year about all bank accounts. There are steep penalties for failing to report each account and I'm reluctant to bear this additional annual administrative overhead/risk.

Nevertheless, I think you might consider this again. It's only a few minutes a year to keep on top of the transfers and other admin, and surely the rules don't extend to limiting your number of accounts or explaining yourself.

nushnush

no i dont get 2% on cash i have withdrawn, i get a bit more. lol, as for being able to put cash back in if abundance go bust, i believe they must have plans in place to cover that eventuality to get FSCS approval, i am happy with the risk as the reward is a fair return for uninvested funds. major bank isa's are a rip off. this method allows me to get £1000 interst outside of the flexi isa before i return my cash to get the 2% inside of it.