Paying into an ISA from a joint account?

busy_dad

Hopefully a simple answer to this one..

My wife is setting up a Vanguard ISA and will be paying into this monthly. Can these monthly payments be made from our joint bank account or does it have to made from her sole bank account? Just slightly confused as understand you have to pay your own money into an ISA and therefore if it comes from the joint, then technically half is coming from me (even though I could simply transfer money into her account first - it just involves an extra step!).

Thanks

xylophone

Your wife can pay the money from the joint account.

IanManc

busy_dad wrote: »

Hopefully a simple answer to this one..

My wife is setting up a Vanguard ISA and will be paying into this monthly. Can these monthly payments be made from our joint bank account or does it have to made from her sole bank account? Just slightly confused as understand you have to pay your own money into an ISA and therefore if it comes from the joint, then technically half is coming from me (even though I could simply transfer money into her account first - it just involves an extra step!).

Thanks

No, "technically" half is not coming from you, because in a joint account both account holders own all the money, not half of it each. Similarly if the account goes into overdraft then both account holders are liable for all of what is owed, not just liable for half each. It is called joint and several ownership / liability.

busy_dad

Wonderful, thanks both for your replies