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  • FIRST POST
    • LJH149
    • By LJH149 8th Mar 18, 3:29 PM
    • 6Posts
    • 1Thanks
    LJH149
    ISA about to reach 85K - what should I do?
    • #1
    • 8th Mar 18, 3:29 PM
    ISA about to reach 85K - what should I do? 8th Mar 18 at 3:29 PM
    When this year's interest is added my ISA will go over the 85K mark.
    Is it possible to split it and transfer 50% to two new ISA accounts, or can I only transfer the whole amount to one new ISA?
    Obviously I want to spread my money to keep it safeguarded, but without having to withdraw the money and lose the tax free status. Appreciate your help, thank you in advance.
Page 1
    • MallyGirl
    • By MallyGirl 8th Mar 18, 3:35 PM
    • 2,741 Posts
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    MallyGirl
    • #2
    • 8th Mar 18, 3:35 PM
    • #2
    • 8th Mar 18, 3:35 PM
    I thought the compensation limit for investments was only 50k so you have already exceeded it
    • talexuser
    • By talexuser 8th Mar 18, 3:38 PM
    • 2,403 Posts
    • 1,903 Thanks
    talexuser
    • #3
    • 8th Mar 18, 3:38 PM
    • #3
    • 8th Mar 18, 3:38 PM
    The OP may have a cash ISA?
    • LJH149
    • By LJH149 8th Mar 18, 3:40 PM
    • 6 Posts
    • 1 Thanks
    LJH149
    • #4
    • 8th Mar 18, 3:40 PM
    • #4
    • 8th Mar 18, 3:40 PM
    I thought the compensation limit for investments was only 50k so you have already exceeded it
    Originally posted by MallyGirl
    It's 85k. Check out the Isa section on this site (I'm not allowed to post the link)
    • LJH149
    • By LJH149 8th Mar 18, 3:41 PM
    • 6 Posts
    • 1 Thanks
    LJH149
    • #5
    • 8th Mar 18, 3:41 PM
    • #5
    • 8th Mar 18, 3:41 PM
    The OP may have a cash ISA?
    Originally posted by talexuser
    What's the OP?
    The question is more about can I transfer one cash ISA into two new ones.
    • Lungboy
    • By Lungboy 8th Mar 18, 3:58 PM
    • 1,409 Posts
    • 1,352 Thanks
    Lungboy
    • #6
    • 8th Mar 18, 3:58 PM
    • #6
    • 8th Mar 18, 3:58 PM
    OP means Original Poster, the person that started the thread (ie you in this case).
    • AirlieBird
    • By AirlieBird 8th Mar 18, 4:06 PM
    • 1,038 Posts
    • 847 Thanks
    AirlieBird
    • #7
    • 8th Mar 18, 4:06 PM
    • #7
    • 8th Mar 18, 4:06 PM
    Yes you can split up your ISA, subject to the terms of your ISA. (Some don't allow partial transfers, in which case you just transfer the whole lot to somebody that does). You can have as many ISAs as you want for previous tax year deposits. You must hold any money put in during the current tax year in the same ISA. Just remember to use the ISA transfer process
    Last edited by AirlieBird; 08-03-2018 at 4:11 PM.
    Did you really mean to put loose?
    Lose: no longer possess, not to retain, unable to find
    Loose: not firmly or tightly fixed in place
    • capital0ne
    • By capital0ne 8th Mar 18, 6:39 PM
    • 524 Posts
    • 254 Thanks
    capital0ne
    • #8
    • 8th Mar 18, 6:39 PM
    • #8
    • 8th Mar 18, 6:39 PM
    Make sure the new ISA provider(s) initiate the transfer(s) - DO NOT withdraw the ISA funds and pay into a new ISA as this will lose ISA status once withdrawn and will use up your ISA allowance when it goes into a new one. But I'm sure you know that. Good Luck
    • thenewcomer
    • By thenewcomer 8th Mar 18, 9:32 PM
    • 95 Posts
    • 21 Thanks
    thenewcomer
    • #9
    • 8th Mar 18, 9:32 PM
    • #9
    • 8th Mar 18, 9:32 PM
    It's 85k. Check out the Isa section on this site (I'm not allowed to post the link)
    Originally posted by LJH149
    is this only for cash ISA? not for investment related ISA?
    • ValiantSon
    • By ValiantSon 8th Mar 18, 9:37 PM
    • 2,047 Posts
    • 1,895 Thanks
    ValiantSon
    is this only for cash ISA? not for investment related ISA?
    Originally posted by thenewcomer
    FSCS protection of 85,000 applies to savings, e.g. a cash ISA.

    FSCS protection of 50,000 applies to investments, e.g. a S&S ISA.

    The two protection schemes are quite different.
    • jimjames
    • By jimjames 8th Mar 18, 9:46 PM
    • 12,653 Posts
    • 11,322 Thanks
    jimjames
    When this year's interest is added my ISA will go over the 85K mark.
    Is it possible to split it and transfer 50% to two new ISA accounts, or can I only transfer the whole amount to one new ISA?
    Obviously I want to spread my money to keep it safeguarded, but without having to withdraw the money and lose the tax free status. Appreciate your help, thank you in advance.
    Originally posted by LJH149
    If you have that much in the ISA, do you need it all to be in cash? Splitting some of it into S&S ISA would get you under the limit and increase potential returns and income
    Remember the saying: if it looks too good to be true it almost certainly is.
    • LJH149
    • By LJH149 10th Mar 18, 7:53 AM
    • 6 Posts
    • 1 Thanks
    LJH149
    I don't know very much about S&S ISAs except that there is risk involved. But thanks for the tip, I'll look into it as an option.
    • colsten
    • By colsten 10th Mar 18, 9:33 AM
    • 9,028 Posts
    • 7,806 Thanks
    colsten
    Is this 50k for investment and 85K for cash ISA per ISA provider or the total money invested/saved irrespective of how many providers.

    So say 80k cash ISA in provider A and another 80K cash ISA on provider B. IS this sum of 160k is still protected or not?

    For investment ISA 50k what the FSCS protection is involved, it is the original value of investment you put or what?
    Originally posted by adindas
    FSCS protection is per financial institution, where a financial institution is defined by their FCA Licence number. Only a few providers offer both, cash and S&S ISAs. Generally speaking, the S&S ISAs offer by these providers are not value for money, and you'd be much better advised to use an investment platform for your S&S ISA.

    Money invested in S&S ISAs is covered by the FSCS but only up to 50,000 per fund manager. For example, if you have more than 50,000 invested in three funds by the same fund manager and fund manager goes bust, you will only get 50,000 back. But if you invested three lots of 50,000 with three different fund managers and all three went bust you would get all your money back. The value of the investment would be the last traded value before they went bust.
    Last edited by colsten; 10-03-2018 at 9:35 AM.
    • eskbanker
    • By eskbanker 10th Mar 18, 10:40 AM
    • 7,446 Posts
    • 8,028 Thanks
    eskbanker
    I don't know very much about S&S ISAs except that there is risk involved. But thanks for the tip, I'll look into it as an option.
    Originally posted by LJH149
    There is of course risk involved in staying in cash too - as things currently stand it's a stick-on certainty that your money will lose its value in real terms because interest rates are below inflation.

    Investing does indeed also involve risk but it's a different type of risk, i.e. there is no capital protection and the growth over time isn't linear in the way that cash deposits are, as there is volatility along the way with spikes and troughs. However, a well-diversified portfolio should comfortably outperform cash deposits over the long term.

    Many savers are understandably nervous about the prospect of investing but it's a myth that investing = risk and cash = no risk!
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