ISA help/advice.
Options
sean_boy
Posts: 2 Newbie
Hi,
I currently have over £100,000 in an up to date ISA.
I’m aware of the £85,000 safety limit with banks, hence the reason I want to devide it between banks/building society’s (ideally still keeping my ISA/s).
Any info or suggestions would be much appreciated.
Thank you
I currently have over £100,000 in an up to date ISA.
I’m aware of the £85,000 safety limit with banks, hence the reason I want to devide it between banks/building society’s (ideally still keeping my ISA/s).
Any info or suggestions would be much appreciated.
Thank you
0
Comments
-
You can only contribute to at most one cash ISA each tax year, but you can transfer any amount of money you've contributed in previous tax years between cash ISAs.
So, open a new cash ISA, don't pay any money into it, but ask for transferring something like 50k from your existing ISA, and both ISAs will be staying in the 85k limit.0 -
If the £100k is in a cash ISA (as suggested by your concern over the £85k limit) then it is being eroded in spending power every year by inflation. It might be worth moving some of it, that you will not need for 5+ years, into a S&S ISA and invest in a mainstream balanced fund which should generally keep up with inflation?
Alex0 -
Thank you both for your replies.
I have paid into a new ISA each year with many years, hense my accumulated amount.
If I open a new ISA for this new tax year and transfer £50k into it also. Therefore leaving the balance in my old ISA, that means it will earn maybe .25% at best?
I will also look at S&S ISA, but again it's knowing where to start as there is so much out there.
Many thanks again0 -
:eek:If I open a new ISA for this new tax year and transfer £50k into it also. Therefore leaving the balance in my old ISA, that means it will earn maybe .25% at best?
I agree with Alex that keeping it all in cash is unlikely to be sensible over the long term, but even if you don't want to move from cash for now, at the very least you should transfer it all into products earning semi-respectable interest.
You could do a lot worse than splitting it with some into an easy access product (1.45-1.5% available) and the rest (for money you won't need for a year or more) into a fixed rate one at upwards of 1.78%. When splitting the money up, just bear in mind that all current year money needs to be in one place, which shouldn't be difficult to achieve, and that you need to use the receiving provider's ISA transfer process.
See https://www.moneysavingexpert.com/savings/best-cash-isa/0
This discussion has been closed.
Categories
- All Categories
- 343.3K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 248K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards