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Cash ISA and FSCS limit
lylbf
Posts: 2 Newbie
Morning all,
Looking for advice on how to handle the (fortunate) situation where cash ISA I have been saving into for years is now approaching limit of FSCS coverage.
My thought was to stop contributing to this cash ISA and open a new one with a separate provider next tax year and use that to save into.
Assuming that's correct strategy, how do I ensure I continue to get a decent rate on the one I won't be contributing to any more? It's currently with a provider on a introductory rate that runs until August 2020. Can I open a second cash ISA next tax year, transfer in, and not make further contributions? Or does that count as "subscribing" and therefore fall foul of ISA rules.
Grateful for clarification and suggestions.
Looking for advice on how to handle the (fortunate) situation where cash ISA I have been saving into for years is now approaching limit of FSCS coverage.
My thought was to stop contributing to this cash ISA and open a new one with a separate provider next tax year and use that to save into.
Assuming that's correct strategy, how do I ensure I continue to get a decent rate on the one I won't be contributing to any more? It's currently with a provider on a introductory rate that runs until August 2020. Can I open a second cash ISA next tax year, transfer in, and not make further contributions? Or does that count as "subscribing" and therefore fall foul of ISA rules.
Grateful for clarification and suggestions.
0
Comments
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Presumably you have subscribed to this ISA in the current tax year. Once the new tax year starts, the existing ISA will hold only subscriptions from earlier tax years.
You can transfer it to another cash ISA without affecting your subscriptions for the tax year 20-21.0 -
Hi xylophone, yes have subscribed to current ISA in 19/20 tax year. Thanks for confirming what I thought!0
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I'd suggest that if you hold £85K or more in cash ISAs, it would be worth considering investing some of that money unless you anticipate needing it all within the next few years, otherwise, even at the best rates, its real-terms value will probably decline relative to inflation....Grateful for clarification and suggestions.0
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