Maturing cash ISA over £85,000

soulsaver

Observations/Options:

Shawbrook's 4.11% (?) isn't the best 1yr rate around to stay there, but: 

W/d down to c£82k would keep you under the fscs limit even in the (unlikely event) they failed near the end of the term  - but you lose the tax shelter on c£5k. 

However, you can probably get 4.11%+ after BR tax using regular savers for the w/d amount - but it would be sensible to keep the tax shelter going forward.
However, if you'll not have the £20k for next FY, it'll go towards your ISA again in April '26? 

Otherwise it's a 2 step - full transfer out to an interim provider's Easy Access ISA, then partial to provider of your choice - even back to Shawb, if you like.

I haven't looked for the best interim provider rate but OTTOMH I know Lloyds EA Isa is flexible, allows partial transfers out and about as safe as it gets for the short time you'll be exceeding fscs - only 3.2% IIRC so GYFO and you'll not be there for long enough to make a diff.

friolento

Beddie said:

As it's only couple of thousand above the £85,000 threshold, the easiest ways are to take the (tiny) risk or withdraw it and put into a saving account. Yes, you'll then be liable for tax on any interest, but that will only be a small sum.

That's only a fix for the current tax year. The problem will re-occur next year, etc etc. Best to bite the bullet.

Having said this, weren't we mean to get a £110k FSCS protection sometime soon, perhaps?

https://www.bbc.co.uk/news/articles/c62z32pyegyo

Ch1ll1Phlakes

friolento said:

Beddie said:

As it's only couple of thousand above the £85,000 threshold, the easiest ways are to take the (tiny) risk or withdraw it and put into a saving account. Yes, you'll then be liable for tax on any interest, but that will only be a small sum.

That's only a fix for the current tax year. The problem will re-occur next year, etc etc. Best to bite the bullet.

Having said this, weren't we mean to get a £110k FSCS protection sometime soon, perhaps?

https://www.bbc.co.uk/news/articles/c62z32pyegyo

Yeah there's no official timeline for this change though. It's question marked in for applying from 1st December but there's been no official comment that this will happen or even when it will be announced.

Yorkie1

I remember previous threads which said that you could only "open and operate" one cash ISA with Shawbrook in any one tax year. e.g. Shawbrook multiple ISA rules — MoneySavingExpert Forum

Might be worth double checking their current rules in case your plan is to fully transfer out, with the intention of opening a fresh ISA for a partial transfer back in.