APS ISA allowance 11 April 2022 at 6:10PM in ISAs & tax-free savings 4 replies 83 views

Marmaduke123

My husband has recently died, leaving a cash ISA near to the FSCS guarantee limit. In the next few months I shall want to open an additional cash ISA for myself, using the APS allowance. 

I understand the process, but am having difficulty finding out which institutions accept APS funds,  as not all do. Is there a list anywhere?

eskbanker

Not aware of a list, but a quick search of "APS ISA providers" finds Skipton and Virgin among others:

https://www.skipton.co.uk/savings/savings-hub/additional-permitted-subscriptions
https://uk.virginmoney.com/virgin/isa/aps-allowance/

Once an ISA has been funded with APS money, there's nothing stopping you from transferring it elsewhere, to any institution, as it would no longer be treated as an 'APS' ISA as such once moved on from where that initial one-off subscription has been done.

Marmaduke123

Thanks, so I could just fund one of these very low interest ISAs with the APS money, then transfer it elsewhere for a better rate?

eskbanker

Marmaduke123 said:

Thanks, so I could just fund one of these very low interest ISAs with the APS money, then transfer it elsewhere for a better rate?

Yes, that's right - at the time of transferring, the fact that the first ISA was originally set up with APS money is no longer relevant (and may not even be visible to the new provider).

As a wider issue, do you need to retain so much money in cash deposit form?

Marmaduke123

Possibly not, will have to think further about that. Thanks for your help.