CASH ISA & FCSC Protection

SIMMONS069

Hi, does anyone have any advice on what to do if your CASH ISA total in one institution was to approach the £85K FCSC protection limit? Can you transfer out part of the balance to a new provider/product for the new tax year so you don't lose the use of your yearly allowance? Any advice on how to manage CASH ISAs to avoid this happening? Many thanks.

SonOf

Can you transfer out part of the balance to a new provider/product for the new tax year so you don't lose the use of your yearly allowance?

Potentially yes.

Any advice on how to manage CASH ISAs to avoid this happening?

1 - many wont be bothered if they are using a mainstream bank
2 - many wont hold as much in cash and use investments instead.
3 - many will have multiple banks before they get to that stage.

eskbanker

If you have, say, £80K in a cash ISA, then this must mean that at least £60K was paid in in previous tax years.

You can transfer contributions from previous years at any time without affecting any annual allowances, subject to the receiving product accepting transfers in - make sure you use their ISA transfer process....

badger09

eskbanker wrote: »

If you have, say, £80K in a cash ISA, then this must mean that at least £60K was paid in in previous tax years.

You can transfer contributions from previous years at any time without affecting any annual allowances, subject to the receiving product accepting transfers in - make sure you use their ISA transfer process....

And subject to the existing £80k ish ISA not being fixed term/fixed rate. If it is, the transfer out can still be made (ISA regulations) but there could be a hefty penalty to pay.