ISA query

miabrown

Hi all,
I've currently got 91,000 in my Isa and will be able to add another 20 in the new financial year. I'm aware that already I'm over the FSCS limit, so if I out in another 20, I will be well over. How can I split it up please in the new financial year?
Thx Mia

mebu60

Presume we're talking Cash ISA here. 
On or after 6 April open a Cash ISA with another provider that accepts transfers-in. Put the new £20k in there and ask the new provider to transfer-in at least £11k from your old ISA (to allow headroom for interest). 

eskbanker

Open an ISA with another provider and initiate a partial transfer from your current one, via the new provider's ISA transfer process.  Check that both support partial transfers, not all do....

miabrown

Thanks mebu and eskbanker - so I will have 2 Isa accounts - one dormant just accruing interest and one 'live' one?

mebu60

miabrown said:

Thanks mebu and eskbanker - so I will have 2 Isa accounts - one dormant just accruing interest and one 'live' one?

Effectively, yes. I was also assuming your current ISA is easy access.

miabrown

mebu60 said:

miabrown said:

Thanks mebu and eskbanker - so I will have 2 Isa accounts - one dormant just accruing interest and one 'live' one?

Effectively, yes. I was also assuming your current ISA is easy access.

Not easy access currently - its locked away for a year, maturing when I need it to in April.

mebu60

miabrown said:

mebu60 said:

miabrown said:

Thanks mebu and eskbanker - so I will have 2 Isa accounts - one dormant just accruing interest and one 'live' one?

Effectively, yes. I was also assuming your current ISA is easy access.

Not easy access currently - its locked away for a year, maturing when I need it to in April.

If you're planning to fix it again be sure to do the transfer-in to the new Cash ISA first, i.e. don't let the current one just rollover into another fix. The current one will presumably be £91k plus interest in April. As above, I'd suggest reducing capital to around £80k to allow for the following year's interest and keeping with FSCS limit.