Helping out my kids with ISAs

penny_pincha

I have a little confusion ISA issue. I have a Nationwide Flexclusive (4.25%) opened last April and my son (under 16) and daughter (17) both have some money they want to invest. They both are interested in opeing the Halifax 6% junior ISA but need a parent to have a Halifax ISA which I do not nor does my husband. I was considering opening one (and put a small amount in it) so that they could benefit.

What I am a little concerned about is that when the Flexclusive 4.25% rates runs out at the end of October, the money in there will be looking for a new home. I may want to open a new ISA at a better rate than the Halifax one then, but will have shot myself in the foot as I can't because I have already opened one with the Halifax.

david78

You can open two accounts with the Halifax if you want to. One for new money, and one to transfer from your Flexcusive ISA at the end of October.

Only your son needs to appy for a Junior ISA. Your daughter can have a "grown up" Cash ISA since she is over 16 (but wont get 6% then).

No foot was harmed in the production of this posting

AlwaysLearnin

You can partially transfer ISA's from previous tax years. Therefore, as the current year rates aren't great for Halifax, you could potentially open a Halifax ISA with a nominal transfer value from your existing ISA in order to satisfy the criteria.

penny_pincha

Thank you to david78 and AlwaysLearnin for taking the trouble to reply. I don't think I was very clear on my OP. I don't wish to transfer into a Halifax ISA which ever one I open from the Flexclusive as the rates are rubbish or a ties up for ages.

My daughter wants to open a Halifax ISA too. I think I will perhaps open an ISA with the Halifax to help them out.

anoncol

I thought you could open as many ISAs as you wanted legally. So you can open another but just dont pay new money into more than one in each tax year.

innovate

anoncol wrote: »

I thought you could open as many ISAs as you wanted legally. So you can open another but just dont pay new money into more than one in each tax year.

That's exactly the issue.

Halifax do not allow transfers-in from non-Halifax ISAs.

You don't want to pay into a Halifax ISA at a horrendous sub-2% interest rate when you can get 4.25% at Nationwide.

However, if you desperately want to help your kids, you might forego the 4.25% and put money into the horrendous Halifax ISA, so your kids can earn 6% in their JISAs.

AlwaysLearnin

innovate wrote: »

Halifax do not allow transfers-in from non-Halifax ISAs.

I read it that they did. From "Useful Info" tab here:

http://www.halifax.co.uk/savings/accounts/cash-isas/isa-saver-online/

it says "Existing cash ISA balances can be transferred into this account from another ISA provider, as long as you use our ISA Switching service. Previous tax year funds won't affect your current tax year allowance."

Looking at the "Funding Information" section at the bottom of their transfer form, I took it that you could just open with a transfer of a nominal amount (£100? Less?) to get the account without losing too much interest from your current better rate, whilst leaving your current years allowance intact.

As long as they don't want a 'new' £1 to open prior to transfer (not come across that before, but never transferred in to Halifax)...

innovate

AlwaysLearnin wrote: »

I read it that they did. From "Useful Info" tab here:

http://www.halifax.co.uk/savings/accounts/cash-isas/isa-saver-online/

it says "Existing cash ISA balances can be transferred into this account from another ISA provider, as long as you use our ISA Switching service. Previous tax year funds won't affect your current tax year allowance."

You might be right there, and if they do then it's all easy-peasy. I was just going by a quick glance on their ISA pages (http://www.halifax.co.uk/isas/?WT.seg_3=Common/promotion/savings/hlinkd/saving-isasonli-lnkd-isasonli00) which talks about transferring in old Halifax ISAs.

If you can transfer in from elsewhere, it's all very easy - - just transfer in a couple of hundred (or whatever the stipulated minimum might be) from an old ISA, get your kids their 6% JISAs, and continue with your own ISAs as if you never had a Halifax ISA.

rb10

innovate wrote: »

Halifax do not allow transfers-in from non-Halifax ISAs.

As far as I can remember, Halifax have always permitted transfers in from any provider.

penny_pincha

I have now had a new look at the maths of this. If I open a Halifax ISA with the minimum of £1 in one of their <2% ISAs it does still mean I have opened an ISA this year. Come end of October, the £10K in the flexclusive will be looking for a new home. I won't be able to move it anywhere without sacrificing too much interest. The Halifax ISA rates are rubbish and/or you have to tie up your money for too long.

I think the best they can do is open another one. Perhaps the Nationwide 3.25% Junior ISA.

innovate

penny, there's a belief that you can open a Halifax ISA with a transfer-in (of previous years's ISA(s)) - - are you saying this isn't possible?

If it were, you could get at the 6% JISA at very reasonable cost