Cash ISA for my Mum!!

Paddy_Boy

Hi people

Couple of things I thought I should run by you all before we do anything.

My Mum is going to open a cash ISA and use full allowance for this year, she is even prepared to betray her instincts and place this with the best paying account and not stay with Yorkshire Bank( took loads of convincing). She also will be using the full allowance on April 6th for the next year.

Now, she wants the isas to be with one provider, so does she just pay into one asap , then wait till new tax year to find the best rate and then pay that in full and transfer this years into the new one??

The transfering and paper work will panic her so just wondered what the best way of doing this was?

Many Thanks

blueberrypie

For now, the paperwork etc will be simple - perhaps when she sees that, it will reassure her for the future.

In April, it will depend on who is offering her the best deal. There are several possibilities:

The ISA she opens now is still the best available - then she can just pay her 11/12 allowance into the current ISA.

A different ISA is offering a better deal, and accepts transfers in - she can fill in one form and deposit her 11/12 allowance at the same time as asking the new provider to transfer her previously-deposited funds.

A different ISA is offering a better deal and does *not* accept transfers in - in that case she has a choice: she can either have two ISAs running at the same time (one for her 11/12 allowance, and one at a lower rate for the rest of her funds), or she can forego the best deal and choose one ISA which allows both new money and transfers in.

Now it might be that the two ISAs are with the same provider - for example, her provider is offering a good deal on ISAs for new money but which does not allow transfers in. The same applies as in the paragraph above, although the transfer is likely to be more straightforward.

None of these steps is very onerous, and as it doesn't all have to be done at the same time, and as you seem willing to do some hand-holding, it shouldn't cause your mum much stress.

lisyloo

It's a very simple 1 page form.
You need to obviously give details of the accounts it's going from and too and sign it, but there's not really much more than that.