ISA £85,000 security

streetdancer

I have a cash ISA which has a balance close to £85.000. How do I carry on investing in a cash ISA with the best interest rate possible, without going over the £85,000 limit per institution?
Thank you

masonic

Unless two ISAs from different providers have identical rates, you have to make a choice, either you have an ISA with the best possible rate and some of your money not covered by the FSCS, or have two ISAs, one of which not having the best interest rate possible, but all of the money covered by the FSCS.

The best ways to achieve the latter would be to request a partial transfer of some previous year money to a different provider, or use your 2019/20 allowance somewhere else.

Terry_Towelling

Do you have any intention, or foresee any need, to use the money in the ISA - which I am presuming is an easy-access account?

I ask because you could just transfer some of it out to a fixed rate/fixed term ISA with another provider to free up some space in the ISA with the best easy-access rate. Fixed term/rate ISA's tend to have slightly better interest rates than easy-access ones.

Alternatively, take the risk and go over the limit, or consider not using an ISA and stick some cash elsewhere in a non-ISA account (which will usually have slightly better rates anyway). Is tax on interest an issue for you?

masonic

Indeed, I'm presuming the OP is either a millionaire with an extensive investment portfolio or has need of the money in the short term, otherwise holding such a large sum in cash in any kind of savings account is generally ill-advised.

Keep_pedalling

masonic wrote: »

Indeed, I'm presuming the OP is either a millionaire with an extensive investment portfolio or has need of the money in the short term, otherwise holding such a large sum in cash in any kind of savings account is generally ill-advised.

Agree far to much cash, and for most people cash ISAs are a poor place to park your savings.

Apodemus

masonic wrote: »

Indeed, I'm presuming the OP is either a millionaire with an extensive investment portfolio or has need of the money in the short term, otherwise holding such a large sum in cash in any kind of savings account is generally ill-advised.

Or just risk averse. I think most of us on this board have a different understanding of financial risk than the general population. We weigh up the certainty of losses to inflation against investment risks and risks of banking failures and come to a different conclusion from those with a simpler approach to finances. I’ve just been through this with a relative who is adamant that all their wealth should be held in bank accounts, suitably spread to be protected by FSCS and won’t countenance anything else. Quite frustrating, but an insight into the way that many people think.

md458

Apologies as not trying to hi-jack but am I near £85k on a savings account quite a turn around for me but definitely not a millionaire!
Reading the info and the replies on here there isn't a definite 'rule' that people follow but if I would want all the money to definitely be safe I should open another protected account with a different provider and start putting in there?

Harvic

If you want complete security (other than inflation eroding the value of your cash) then stick consider NS&I premium bonds alongside FSCS protected cash ISAs. Also tax free and protected unless the government fails... that used to sound more reassuring.

droopsnoot

Keep_pedalling wrote: »

Agree far to much cash, and for most people cash ISAs are a poor place to park your savings.

I've fallen into a similar position - I just leave it too late to do anything close to the end of the tax year, panic about losing my annual allocation, so open a cash ISA to get it sorted quickly. Then intend to "sort things out" after the dust has settled, and all of a sudden it's the end of March again.

md458 wrote: »

if I would want all the money to definitely be safe I should open another protected account with a different provider and start putting in there?

Yes, and make sure that it's a separate provider in reality, rather than just a separate bank counted as the same provider: https://www.moneysavingexpert.com/savings/safe-savings/#whatcounts