ISA FCSC

cargo

Hi

My current Isa recently matured and as gone over the FCSC limit I am assuming the scheme works with Isa accounts as with any other savings account. 

I am unsure what to do ?

Should I be splitting and transferring this up into smaller Isa accounts? Can you do that ? I thought you are only allowed to open one Isa account per year upto 20k at the moment.

Any advice would be more than welcomed.

Thanks

FrugaiMacDugal

The £20k is for 'new' money per tax year.

To transfer 'old' money you must get new provider to initiate transfer to maintain ISA status.

Grumpy_chap

You can transfer funds from one ISA to another while remaining within the ISA wrapper - be careful with process to ensure everything goes as a transfer rather than withdrawal and new deposit.  If the funds are withdrawn, the limit you referenced will apply.

flaneurs_lobster

You can open as many ISAs as you like, what you can't do is add more than £20k of new money in total in any one tax year.

Some providers only allow you to hold a single ISA with them, but splitting across two or more won't be an issue, and is what you want to do in your case.

Albermarle

The FSCS scheme works just the same for cash ISAs as for normal savings accounts.

Some people would always keep the amount with one provider below £85K. Others can be a bit more relaxed if it is with a bigger bank.

Regarding ISA rules in general, there is a sub forum that would be useful for you to read through.
ISAs & tax-free savings — MoneySavingExpert Forum

cargo

Thanks to all whom have replied. 

It's really appreciated.

So to summarize I can split this account in half and transfer each half to two new providers ?

This can be done as many times a year  (if needed I have another Isa account near the limit) as long as it's transferring existing Isa funds ?

Thanks

flaneurs_lobster

cargo said:

Thanks to all whom have replied. 

It's really appreciated.

So to summarize I can split this account in half and transfer each half to two new providers ?

This can be done as many times a year  (if needed I have another Isa account near the limit) as long as it's transferring existing Isa funds ?

Thanks

Yes...........

Heedtheadvice

Yes....but,

From memory...

You must get the destination ISA provider to initiate the transfer otherwise you loose that ISA status  and

Transferring part of an ISA depends also upon the rules that the source provider has. Sometimes you can only do transfers in full  not in part. Worth checking the Ts & Cs before any action!

Eyeful

When thinking about the FSCS limit remember the interest that will be added to that account each year.

badger09

And don’t try to do both xfers at the same time. 

Ask ISA provider A to xfer £xxx, then once that’s completed, ask provider B to xfer the balance.   

saajan_12

cargo said:

Thanks to all whom have replied. 

It's really appreciated.

So to summarize I can split this account in half and transfer each half to two new providers ?

This can be done as many times a year  (if needed I have another Isa account near the limit) as long as it's transferring existing Isa funds ?

Thanks

You can, but what's the point of going to 2 new providers? Just transfer part out, and leave the rest with this one?