ISA Advice

BBAMH

My Dad has just got a new ISA that's just been opened with his inheritance from Mums ISA after she passed away , this was done via APS ( Additional Permitted Subscribtions). He now has 2 ISA accounts with the same bank but paying a very low interest rate , because of the £85k FCS limit for if the bank goes bust he doesn't want to put all into the same ISA . Does the ISA that's just been opened using my Mums APS stop him opening a new ISA now , his own ISA he opened in 2018 .

xylophone

 Does the ISA that's just been opened using my Mums APS stop him opening a new ISA now , 

No. Your father still has his current tax year's ISA allowance available.

https://www.thisismoney.co.uk/money/saving/article-1583864/Best-savings-rates-Isas-Cash-Isa-accounts-fixed-rate-Isas.html

afis1904

He also most likely won't need to put everything in an ISA as the first £1000 (basic rate) or the first £500 (higher rate) of interest outside of an ISA are tax free.

eskbanker

afis1904 said:

He also most likely won't need to put everything in an ISA as the first £1000 (basic rate) or the first £500 (higher rate) of interest outside of an ISA are tax free.

Just to add the usual pedantic clarification, these aren't tax-free as such but are taxed at 0% - for most (but not all) people the net effect is the same though....