Growing ISA’s over a ten year period

splinters

Apologies if this is an obvious question but I was a bit clueless with ISA’s taking the interest from a maturing one then closing and opening another for years. I know, stupid.
Anyway, I have an ISA maturing 12th April and another in October. 

My plan is to transfer the maturing ISA to a new Cash ISA, add another £20k and then transfer in the October matured ISA. I believe this is permissible as one of those was a two year, the other a one year. I will lose some interest on that but want to consolidate/align some investments. Next April I would add another £20k to it and then I would be very near to the £85000 limit covered by the FCSC.
I would then leave that ISA to accrue annual interest while opening another with a new 20k, and so on repeating this every 3-4 years. By the end of a 10 year period I would have 4 maxed out ISA’s.
In my mind, this seems too easy (yes, I know finding a spare 20k is not easy, but I have around £200k in various savings accounts that I’m getting taxed on).
My wife is also doing the same with my money from these savings accounts until I get most of the tax paying savings into tax free ISA’s
Looking at this statistically, I could get around £350k in ISA’s in that period.
Am I missing some restriction or limits here? From what I can see, there are no limits on the amount of ISA’s owned as long as you don’t put more than £20k in each year (but transferring is fine). I would need to choose providers who will allow the transfers in.
I have managed to save over £20k a year for the last decade and hope to do the same for the next 10 years so this should be realistic (£20k of my savings and £20k from the savings for the next 7 or 8 years).

masonic

There are a small number of ISA millionaires and have been from some time, so no you are not missing anything when you consider the possibility of accruing a 6-figure sum over 5-10 years.

But it may be worth considering whether holding so much in cash is the right thing to do if you intend to invest it for the long term and appear to have a stable and decent income.

splinters

masonic said:

There are a small number of ISA millionaires and have been from some time, so no you are not missing anything when you consider the possibility of accruing a 6-figure sum over 5-10 years.

But it may be worth considering whether holding so much in cash is the right thing to do if you intend to invest it for the long term and appear to have a stable and decent income.

Thanks, I do need to reduce the cash savings. I already put an additional £30k from the cash into my workplace pension this year, I have a teachers pension I can’t add to anymore (starts when I’m 60). The money came from inheritance while I was overseas so I just put it into high interest accounts until I got back to the UK and now I’m looking at reducing the tax I have to pay on savings.

jimjames

masonic said:

There are a small number of ISA millionaires and have been from some time, so no you are not missing anything when you consider the possibility of accruing a 6-figure sum over 5-10 years.

But it may be worth considering whether holding so much in cash is the right thing to do if you intend to invest it for the long term and appear to have a stable and decent income.

I dont think any ISA millionaires will have achieved that with cash. My understanding is the likely total from cash is around £360,000 if you've added the maximum since 1999.

gravel_2

With that amount of savings I would look at S&S options as well for some of your savings. We're likely heading back into a lower interest environment so 200+k in cash ISAs won't be doing as much work for you as over the last year or so.

400ixl

If you have a 10 year investment window for this ISA money you would be better off with a S&S ISA to get better growth and its less hassle as you don't need to keep creating and transferring cash ISA's.

masonic

jimjames said:

masonic said:

There are a small number of ISA millionaires and have been from some time, so no you are not missing anything when you consider the possibility of accruing a 6-figure sum over 5-10 years.

But it may be worth considering whether holding so much in cash is the right thing to do if you intend to invest it for the long term and appear to have a stable and decent income.

I dont think any ISA millionaires will have achieved that with cash. My understanding is the likely total from cash is around £360,000 if you've added the maximum since 1999.

Yes, that was a point I considered adding to my post, but I didn't want to overdo it