Mother and Son Joint Account ?

jehangir

Can anyone please give me some advice .

I am looking at ways of maximising my mothers savings without opening too many accounts .

I have a Santander 123 account as does my mother both which have the full amount in them - would it be possible to open a joint account between us ?

If it is would it be possible to setup the £500 transfer between the joint to hers account fulfil the terms and conditions to get the interest?

I know it would be possible to get more by having various accounts but she does not want too many accounts to manage.

Any help would be much appreciated

Stubod

...yes I think you can open a joint account as well as have an individual account each, but I think the "money in" has to come from "outside"..ie you can't transfer from the same bank...you would also need 2 DDs..

xylophone

Your mother could open a joint account with you - she could also open a Tesco current account (no pay in or DDs required and interest on credit balances up to £3000) and a couple of Tesco savings accounts to create DDs for the joint account.

She would set up a SO on the Tesco current account to send the required amount to the joint Santander and a SO on the joint Santander to send it back again.

jehangir

Thanks for the quick responses and help . I will get it all sorted hopefully tommorow then i can sort out my own savings .

LXdaddy

xylophone wrote: »

Your mother could open a joint account with you - she could also open a Tesco current account (no pay in or DDs required and interest on credit balances up to £3000) and a couple of Tesco savings accounts to create DDs for the joint account.

She would set up a SO on the Tesco current account to send the required amount to the joint Santander and a SO on the joint Santander to send it back again.

On the DD question - if your Mother has household bills then using DD to pay them from the Santander account would give cash back that could well cover the monthly fee.


And to agree with others - the funding requirement needs to come from an account outside Santander so it would be necessary to set up an account with a different bank and simply bounce £500 out and back on the same day (pick a a date which is not near the day of the month you open the account as the Santander "month" is not a calendar month)

badger09

jehangir

Please make sure both you and your mother understand the implications of opening a joint current account before you go ahead.

You will be linked financially, and the money in the account will be accessible to both of you. This may be what you intend, but it may not:cool:

jehangir

Thank so for pointing out the financial implications , I am a soletrader and my mother a pensioner who relies solely on her pension which is why i am trying to make her money " work " for her .

Could having a joint account cause some tax implications as they HRMC may take it as being mine ?

LXdaddy

jehangir wrote: »

Thank so for pointing out the financial implications , I am a soletrader and my mother a pensioner who relies solely on her pension which is why i am trying to make her money " work " for her .

Could having a joint account cause some tax implications as they HRMC may take it as being mine ?

HMRC assume that a joint account is 50% for each holder - certainly each holder is assumed to get 50% of the interest and has to include in their tax affairs.

C_Mababejive

See here for HMRC
http://www.hmrc.gov.uk/manuals/saimmanual/saim2420.htm

Ken68

Best to keep separate accounts, Jehan, anything could happen otherwise.
You don't say if there are other children, how would they feel if your business had a downturn and you 'borrowed' from the joint account.