ISA of 78000 Don't want to go over 85000

evie2468

Hi, I have an ISA which I am transferring to get a better rate, it is 78044.  I have not used any allowance this year.  I now want to use this allowance but would like to make this one 85000 for neatness.  But I want to invest the full 20000.  I think this is impossible, so should just open new cash one of 20000.  Would there be any way to make he transferred one 85000?  Thanks

eskbanker

Provided both providers support partial transfers, you could transfer £65K to the new provider and add the full £20K of new contributions, while separately transferring the residual £13K elsewhere, or transfer the £78K to the new one and then £13K away before adding the £20K.

From a wider perspective, £98K is quite a lot to be holding in cash form, losing real-terms value to inflation, have you considered investing some of it or are you likely to be needing access to the money within the next few years?

evie2468

Thanks for the advice.  We will be spending a fair chunk on our house in the near future, plus our children are needing to borrow some.  I'm doing this to buy some thinking time as the ISA I will use is a better rate than what I have at present.  

xylophone

The £85,000 would be earning interest from the day of deposit so more than £85,000 in the account from day 1......?

evie2468

xylophone said:

The £85,000 would be earning interest from the day of deposit so more than £85,000 in the account from day 1......?

Not sure what you are saying?  The question was answered in previous post by eskbanker

xylophone

Is it your wish to hold no more than £85,000 in any one account?

If you arrange matters so that you have £85,000 in one account  at the start, the interest accruing will mean that there is more than £85,000 in that account from the day after it is opened?

jimjames

evie2468 said:

Thanks for the advice.  We will be spending a fair chunk on our house in the near future, plus our children are needing to borrow some.  I'm doing this to buy some thinking time as the ISA I will use is a better rate than what I have at present.  

If you need the money in the near future then the ISA wrapper is pretty pointless. It would make sense to just get the best rate you can for that time and not worry about the ISA bit and make sure it's in a different bank for FSCS.