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NSI & ISAs

This topic has 1 reply, 2 voices, and was last updated 3 years, 11 months ago by Annie.

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June 10, 2020 at 14:36 #151864

Sam
Participant

So I have two NSI – National Savings and Investment – ISAs one in my wife’s name and one in mine. My understanding is that they’re backed by The Treasury, so if there was a financial crash I wouldn’t lose any of the money.

On the other hand I have two ISAs with the bank – if I move the cash from the NSI ISAs because it’s a better rate would I have the same guarantee?

July 14, 2020 at 10:52 #155996

Annie
Keymaster

Hi Sam,

It all depends on how much you have in your ISAs and where you want to move them to. Your savings are each protected up to £85,000 per banking group – your wife and you each get that allowance, so it’s not split between married couples.

We’ve just published this article, which explains who owns which banks: https://www.moneymagpie.com/manage-your-money/who-owns-who-protecting-your-money-under-fscs-rules

As long as you spread any money over £85k (each) across different groups, you’re protected if your bank goes bust. It’s the same for the NS&I ISAs, too – anything over that amount isn’t protected, although the risk of that bank going bust is negligible because, as you say, it’s the only state-backed bank with Treasury support.

Hope that helps!
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