Splitting my cash ISA

kjs31

My ISA is over the FSCS limit so I want to split it into a 12 month fixed rate with the remainder in an easy access cash ISA. Having had 2 abortive attempts at setting up a fixed rate so far (one with UBL and one with Oaknorth) I am about to start attempt 3 with Virgin Money. The Virgin instructions are to check whether the current provider allows partial transfers. Can’t see that info on Principality’s website, only info on how to transfer to another provider so I’m going to assume that it’s fine. I assume I select transfer only for this one and cap at 80k to allow for the interest payment after 12 months. 

Then the remainder I will be transferring into an easy access cash ISA. I assume that I need to wait until the Virgin transfer is done as I want to transfer whatever is left including pending interest and close the Principality ISA so I can’t define the exact amount at this stage. So I select transfer and current year subscription? I have already invested some of this year’s 20k in my investment ISA but I assume that I can still invest the remainder in a cash ISA? Anything else to be aware of there? 

Catplan

Is it the online ISA from Principality, looks like they do allow partial transfers, page 2 under Transferring your ISA.

https://www.principality.co.uk/-/media/PBS/Savings/account-terms/isas/Online-ISA.pdf?la=en&hash=D8AA6288E8109C7D12E1184A24B6FDDA

It sounds like the ISA you are transferring from, is previous years contributions? Not this years as you need to keep current years together. You must use the providers transfer process, don’t withdraw isa funds to a linked account or anything.

kjs31

Catplan said:

Is it the online ISA from Principality, looks like they do allow partial transfers, page 2 under Transferring your ISA.

It sounds like the ISA you are transferring from, is previous years contributions? Not this years as you need to keep current years together. You must use the providers transfer process, don’t withdraw isa funds to a linked account or anything.

Thank you! Yes it’s all from previous years. I haven’t paid anything into a cash ISA yet this year,  just a few thousand into an investment ISA so far, and yes I will follow the transfer process. I’ve done transfers in the past but only the entire amount and I haven’t muddied the water by trying to invest the 20k across cash and investment ISAs before. 

hamski

Would it not be easier to transfer all to easy access isa first then transfer to your chosen fixed from the easy access isa

kjs31

hamski said:

Would it not be easier to transfer all to easy access isa first then transfer to your chosen fixed from the easy access isa

Yes, possibly. Thanks.