Can my wife pay directly into my ISA?

YorkshireBoy

Lokolo wrote: »

Barclays, when I opened an ISA, specfied if I paying in my cheque I would need the cheque to be from me, to me. Not anyone else. And I'm sure they had a reason to say that!

Halifax told me the same the last time I had an ISA with them.

Hemel wrote:

It's not in the T&C either.

Are you referring to your own provider?...because it appears to be in the A&L Direct ISA T&C's (section 30, Definitions).




EDIT: It looks like providers may interpret the regulations/guidance notes as they wish.

Section 6.6 (top of page 50) in arealhighlander's 'guidance notes' link clarifies the 'guidance' for ISA managers, and says...

"Cash subscriptions from third parties can be accepted without question unless the ISA manager holds information that shows that the cash does not belong to the investor"

enigmam

arealhighlander - thanks for that information, I couldn't find it anywhere, obviously not looking in the right places. It's obviously not clear to everyone, as the replies on the thread shows.

Thank you

arealhighlander

When OPENING an ISA you probably need to use a cheque in your own name as it is the initial payment and its part of the Money Laundering/we need to know you are who you say you are type rules.

But once the initial deposit is made, then anyone can pay in.

FluffyFiFi

There are no legal reasons why the money has to come from you. Some providers may make their own rules but the tax allowance is for your savings, i.e. you can save £3600 per year. Whether the money comes from your own account or someone elses shouldn't make any difference. I work for Nationwide and we will accept money or cheques for a cash ISA as long as it doesn't take the account over the £3600 limit.

Lokolo

arealhighlander wrote: »

When OPENING an ISA you probably need to use a cheque in your own name as it is the initial payment and its part of the Money Laundering/we need to know you are who you say you are type rules.

But once the initial deposit is made, then anyone can pay in.

I am not quite sure this is the reason, I only say this because they surely have other ways to check. For example, they use your national insurance, bank statements to prove where you live, drivers liscence, passport etc. which are all needed when opening an ISA.

FluffyFiFi

Lokolo wrote: »

I am not quite sure this is the reason, I only say this because they surely have other ways to check. For example, they use your national insurance, bank statements to prove where you live, drivers liscence, passport etc. which are all needed when opening an ISA.

The cheque can be from anyone, as long as it is made out to you. All new accounts have to be verified that you are who you say you are, which is covered by your passport of full driving licence. The second part of the verification is your address which is covered by a utility bill, bank statement or Community Charge notice, these must not be more than three months old. Once the customer is verified this does not need to happen again if they open another account.

Lokolo

FluffyFiFi wrote: »

The cheque can be from anyone, as long as it is made out to you. All new accounts have to be verified that you are who you say you are, which is covered by your passport of full driving licence. The second part of the verification is your address which is covered by a utility bill, bank statement or Community Charge notice, these must not be more than three months old. Once the customer is verified this does not need to happen again if they open another account.

Please reread the above quote. When opening an account, Barclays said they had to have a cheque from yourself, to yourself. As with Halifax from someone else. This is what I was responding to

cheerfulcat

enigmam wrote: »

Sorry if this is a stupid question, but if I set up an ISA in my name, can BOTH my wife and I make direct payments into it. I understand it can't be a jointly named account, and we are both happy with that, but we would both like to make ad-hoc direct payments using internet banking.

You could open a joint current account and make payments from that. Doesn't answer your question but might be a way round?

arealhighlander

Sorry, it took me a while to read all 183 pages!

In Chapter 6 it says :-

6.6 Investors can subscribe cash to either type of ISA. They must subscribe with their own cash, and this includes payment by cheque, direct debit, charge card, credit card, telegraphic transfer and standing order. Cash subscriptions from third parties can be accepted without question unless the ISA manager holds information that shows that the cash does not belong to the investor.

Which seems to contradict itself? i.e. only you can pay into it, but others can also pay into it unless the ISA Manager can show the money being paid in doesnt belong to you (how are they going to do that??)

dunstonh

And the ISA managers arent usually willing to take on that responsibility so they say that the cheques should be drawn on the account of the individual paying into the ISA.

I suspect that Cash ISAs are more flexible on this than stocks and shares ISAs due to counter services at the banks & building societies.

For the record, none of the fund supermarkets I looked at (and its the big 3) will accept cheques from anyone other than they ISA account holder.