Cash ISA strategy: add to existing or open new

alwaysquestioning

I’d really appreciate some advice on how to manage my Cash ISAs and where to put this year’s £20k allowance.

Right now I have:

• £86k with Moneybox at 4.32% (including a bonus rate that still has 10 months left — I opened it 2 months ago)
• £66k with Trading 212 at 3.60%

I’m unsure whether putting another £20k into Moneybox is the best move. On one hand, the rate is good for now, but on the other, I’m wondering if it might be smarter to spread funds across multiple Cash ISAs rather than building up a large balance in one place.

I know the FSCS limit is £120k now, so I’m still below that, but I’ve also noticed that it can be difficult to find ISA providers that allow partial transfers. That worries me a bit in case I go above the limit in the future and want to move only part of the funds.

I’m not considering a Stocks & Shares ISA since I’m planning to buy a house this year or next, and I’m also not considering a LISA either, so this is purely about Cash ISAs.

My main questions:

1. What would you do in my position? Put the £20k into a new Cash ISA for diversification, or just add it to Moneybox and bring it up to £106k?
2. I’m also planning to transfer the £66k from Trading 212 to another Cash ISA with a better rate, does anyone have recommendations for good providers offering >4% and accepting transfers in?

Thanks in advance for any insights!

Newbie_John

Honestly not much difference, you really overcomplicated a simple problem.

I'd be more interested in why you don't consider LISA?

Are you not eligible for the house youre planning to buy (not first time buyer, expensive house etc.)?

Regarding topic, put money towards Moneybox and move on, 0.1% on £100k is £50 difference - you could save much more making house offers now with lower price trying to chance the market.

IOWJJBTM2025

I have been looking at my ISA's and opened an account with prosper which was advertised at 4.7%. After becoming a member it said that it had now closed the 4.7% rate and today has said that they have a new 4.6% rate available. Like yourself I have a Trading 212 ISA but mine has a rate of 4.33% until Jan 2027.

I now see that Plum are offering 4.6% for newbies and 4.45% for transfers. Plum maybe an option for you? Not sure if you could transfer £66K from Trading 212 and also put new £20K in? It would get you an extra £1400 per year on your £166K plus £920 on your new £20K

I would be interested if you could do both as I could do a similar action?

alwaysquestioning

https://forums.moneysavingexpert.com/discussion/comment/81953026#Comment_81953026

I am not considering LISA because of the 450k limit, in London in the areas where I would like to buy is impossible to find a 2 bedrooms flat at that price, even if I underoffer.

alwaysquestioning

https://forums.moneysavingexpert.com/discussion/comment/81953049#Comment_81953049

I was looking at Plum this morning, and it seems they only pay the bonus after 12 months. If you transfer the money out before then, you won’t receive the bonus until the full 12-month period has passed. and the basic rate is very low. That’s at least how I understood it, but I’m going to read through the details again to be sure.

It’s good to know that Prosper is changing the rules as they go, I’m not sure I’d trust them because of that.

superleeds27

Same boat. Do I chuck a bit more into moneybox where my bonus rate (4.15% at the minute) ends in July, or look at somewhere new and spread it, or, move it all somewhere else.

Undecided at the minute

KTog

Interesting dilemma
I get what you mean about spreading funds around. It particularly comes prelevant when reaching the max FSCS cover but then some providers don't allow partial transfer so you're stuck with the full amount.

However on the flip side - a few of the top % providers will also say "new customers only" so it's best to only use them when needed. Only use them to their fullest outcome.

So in your position - I personally would add the extra £20K to Moneybox this year, then next or year after consider splitting.

Albermarle

https://forums.moneysavingexpert.com/discussion/6663021/cash-isa-strategy-add-to-existing-or-open-new

I know the FSCS limit is £120k now, so I’m still below that

Neither Moneybox or T212 are directly covered by the £120K FSCS cover, as they are not banks.

They deposit your money with large banks, who are covered for £120K. However this limit includes any other funds you might have with those banks.