What would happen to any balance over £85,000 invested in ISAs should they go into financial difficulties?
13 September 2021
Question by joy
What would happen to any balance over £85,000 invested in ISAs in a firm like Nutmeg or Wealthify should they go into financial difficulties?
Answered by Matt Angell
Both companies are covered by the FCA which in turn gives you the cover of the financial compensation scheme and gives you that £85,000 limit.
If either company went bust then you would receive £85,000 but anything in excess of this would be lost.
One of the key things we will always do is to use the most financially strong businesses that give us the peace of mind that our client's money is safe with many clients having more than £85,000 in their ISA's.
Nutmeg though have recently had their financial strength increased after big US firm J P Morgan announced plans to acquire them and is also one of the largest Robo advice options with over £2 billion invested.
Wealthify is also backed by a large well-known brand Aviva so that adds huge backing to them too.
Please have a good read through the compare section on the Boring Money site to look through the various options available and look through their financial strength ratings too.
Founder & Financial Planner
I am the founder of Creative Lifestyle Planning, an independent financial planning firm that works with many families across the UK. Matt specialises in helping families to answer those all important questions they have on their mind and helping many clients gain a clearer, simply understanding of when and how to they can retire.