Can this be done with cash isas?

philipsaveer

My mum and dad have 52000.00 that they would like to put into a isa but they want to keep it separate from any other funds they have.

The issue is they both have isas in their names and they also want to move them to a better rate than they are currently getting so obviously if they move them they can't open a new isa this tax year so what I suggested is they combine both their current ISAs into one under one person'e name (my mum for instance) and move that one to a isa with a better rate then put the 52000.00 in a brand new isa under my dads name.

My only question is can this legally be done?

MoneySavingUser

No because:

1) The limit for Cash ISA's subscribed to in one year is £5640 per person so they can't deposit £52000
2) You can't transfer ISAs to another person

Vortigern

philipsaveer wrote: »

...obviously if they move them they can't open a new isa this tax year

No, it's not obvious at all. What you say is just plain wrong!

They can each move their existing ISAs to a better rate without using any of this year's allowance. Then each can add this year's allowance to their new ISAs or each can open a new ISA for this year's money.

They can't combine their ISAs to make a joint ISA. There is no such thing. The I in ISA is for Individual.

Wail

Existing ISA's

They can transfer them and put them into any account that will accept transfers. This does not affect their ability to open a new ISA.

I am doing 4 transfers at the moment and I have not even opened a new ISA yet. I will do this coming week.

Don't withdraw the money. It must be transferred to retain ISA protection. Be careful when transferring to a different product in the same bank/Building Society. When transferring, you will fill in a Transfer Form for your new bank/building society and give them the details of your existing and new account. Your new bank/building society will then send the form you have filled in to your old bank/building society and they will send the dosh over to your new bank/building society who will put it into your new account.

New ISA's

They each have £5640 capacity to invest in cash, so could put £11280 into ISA's. They can open an ISA each and put £5640 in.

Is that clear???

If not ask, no such thing as a dumb question.