ISA and £85k FSCS

[LunchtimeNaps]

Can anyone advise how I do this. Currently have an ISA which very soon will reach the FSCS limit. When it comes to my ISA rate going down and opening a new one in the next financial year how would I split this in order to keep within the maximum amount? I still plan on saving so would be looking for a good interest rate.

You could have a look at Hargreaves Lansdown active savings ISA where you can split savings between different banks.

www.hl.co.uk/savings/cash-isa

Or you could do a partial transfer of half to another ISA and then tfr the rest to another one.

It depends which ISA provide are using - If it someone reputable like Big banks ( Barclays etc), Vangaurd etc then I wont worry. But if you are using new comers like Trading212 then I would make a new ISA account.

You can open multiple ISAs of the same type in the same tax year
https://www.vanguardinvestor.co.uk/articles/latest-thoughts/investing-success/3-key-changes-for-isas-in-2024-25

Cash ISA are easy to transfer from one provide to another. Stocks are harder ( takes long time). not sure whether you have cash ISA or Stock ISA?

If an ISA provider / platform failed the underlying investments, assuming this is a stocks & shares ISA and not a cash one, would not (almost certainly) have failed and would ultimately be transferred to a new provider as part of the resolution of the platform. FSCS wouldn’t come into play, but you would probably have some delays to getting access to your investments.

A cash ISA is more like a savings account and the FSCS limits would then be relevant.