Transfer old cash Isa to 2 new ones

Baffledbrain

I’ve reached my £85000 protected money limit in a cash Isa, so now want to transfer it to 2 new cash Isa providers splitting the money. I have paid nothing into this years Isa allowance. Can I open 2 isas and transfer the old Isa money between both and then add my new allowance into one of them ? Thanks 

boingy

You can, as long as your existing provider supports partial transfers out, which many do.

It might be simpler to open just one new ISA then transfer, say, 10K from your existing one and add new money to it. The transfer does not count as part of your £20k allowance so you don't need two new ISAs unless you are going to get a better rate than your existing one.

Alternatively, you could just open a new ISA and put new money in it. Interest will grow the other ISA beyond £85K but a bank going under is vanishingly unlikely and the £85K would still be protected so you only risk losing the interest.

friolento

If you want to split your ISA and the existing ISA provider doesn't support partial transfers-out, simply transfer the lot to an ISA which does support them. Then transfer as required from that ISA.

ISA transfers do not count towards your annual allowance if you follow the proper ISA transfer process. See also https://forums.moneysavingexpert.com/categories/isas-tax-free-savings