Strategy to having multiple ISAS

Gromit1234

Hi, I have 3 fixed isas that are maturing in May, total value around £60k and I have £20k to go into an isas now. I can't decide if it's best to open a new isa at around 4% making 4 isas in total or adding the £20k to an existing provider if the interest rate is the same. Is it better to have more or less isas? Any advice would be gratefully received.

masonic

It depends on your circumstances. If you are fixing, then it may be beneficial to have tranches of money maturing at different times and the ability to spread the risk related to locking into a rate. But it is more admin. Having them all mature in the same month seems to defeat any benefit you'd get from splitting.

XzavierWalnut

masonic said:

It depends on your circumstances. If you are fixing, then it may be beneficial to have tranches of money maturing at different times and the ability to spread the risk related to locking into a rate. But it is more admin. Having them all mature in the same month seems to defeat any benefit you'd get from splitting.

Totally agree with having different maturing dates. Between my wife and myself we have 9 ISAs, and fix some for 1 year and some for 2 years. In the past we have had 5 years fixed which rode out some of the very low interest years.

Reed_Richards

It's better to have more.  And you'll soon need more than one ISA provider (if you don't already) as the total you have in ISAs could soon exceed £85k and you will want it all protected under the FSCS Compensation Scheme.  

Gromit1234

Thanks for your comments. As suggested having different maturing dates would have been ideal but in regard of this years Isa it looks like interest rates will be dropping ( they have started already ) So I don't want to hang around. 

Yorkie1

You could always open and fund one now for this year's allowance.

Then in May, consider whether to transfer the 3 maturing ones into one single ISA - whether with one of those providers or a different one. That way you're not likely to breach the £85K limit with a provider, while locking in rates while you can.