Cash ISA over the FSCS protection limit

darwin34

I have a cash ISA which has gone over the protected limit of £85k. When it matures in July, can someone advise best method of dealing with it? 
I was thinking transferring £70-80k to another fixed ISA and the remainder withdrawing and going into a newly opened Cash ISA.

To me, its the only real option?

Thanks for reading. 

JGB1955

You could split it and transfer into 2 ISAs.  No need to physically withdraw the balance (which would temporarily lose it's tax free status), leaving you the option of adding £20K of new money in 2024/25.

darwin34

JGB1955 said:

You could split it and transfer into 2 ISAs.  No need to physically withdraw the balance (which would temporarily lose it's tax free status), leaving you the option of adding £20K of new money in 2024/25.

Thanks, i wasn't aware I could do two transfers. That sounds like a good solution

j_netprofit

I asked something similar in another thread and didn't really get many replies.

So let's say you have significant wealth, a million pounds already spread over the best part of half a dozen accounts...what do you do? Turn that into a dozen accounts? All starts to get very confusing and much harder to manage.

Should we really be all that concerned if the holding exceeds 85k but is with "major" banks?

darwin34

jay_ftw said:

I asked something similar in another thread and didn't really get many replies.

So let's say you have significant wealth, a million pounds already spread over the best part of half a dozen accounts...what do you do? Turn that into a dozen accounts? All starts to get very confusing and much harder to manage.

Should we really be all that concerned if the holding exceeds 85k but is with "major" banks?

I understand more accounts needs more management but I'd be disapponted 'if' I lost over £3k, which could potentially be a loss of £5k next year, due to apathy basically. I'm not a gambler, if I was, it would be in Stocks and Shares not a simple Cash ISA.

j_netprofit

Completely understand, so on that basis if you had let's say 500k in savings would you have it across 6 accounts?

darwin34

I already have more than six accounts so it would have to be a yes. I haven't got £85k in each of them though 😃

amanda1024

Those sorts of money, I’d be unlikely to hold in cash (unless very temporarily around selling/buying a home) - pensions, particularly (certain sorts, but not all, are protected beyond £85k). There’s also NS&I - although rates have fallen quite a bit - if you’re wanting all the money in one place

j_netprofit

I don't have this kind of money, I'm just educating myself.

So I'm not missing a trick as such, the only real options excluding a pension are

1) Not protected
2) Loads of accounts
3) NSI Direct Saver (3.65%?)

darwin34

amanda1024 said:

Those sorts of money, I’d be unlikely to hold in cash (unless very temporarily around selling/buying a home) - pensions, particularly (certain sorts, but not all, are protected beyond £85k). There’s also NS&I - although rates have fallen quite a bit - if you’re wanting all the money in one place

NS and I premium bonds restricted to £50k. Their rates on other accounts aren't competitive either. 

darwin34

jay_ftw said:

I don't have this kind of money, I'm just educating myself.

So I'm not missing a trick as such, the only real options excluding a pension are

1) Not protected
2) Loads of accounts
3) NSI Direct Saver (3.65%?)

Thats about it, but you can easily get an extra 1-1.5% with other accounts, compared to NS&I, if prepared to shop around. We all do it for insurances, shopping etc so makes sense to do it with finances too.
Of course with pensions, most people get them when unable to utilise properly due to age 🙄