Paying into an ISA monthly from multiple accounts - is this possible?

[HesterLee]

My 6 closest friends and I would like to open a savings account and each put in £10 a month. The idea behind it is to have a little pot to spend on things like dinners out, our yearly secret santa etc.

I have been looking at an ISA and am aware of the yearly limits but do not know if money can be paid into an ISA from 7 different people each month. I've tried googling the question without much info found. Does anyone know if this is possible or do deposits have to come from one nominated account? Thanks.

Why an ISA and not a regular savings account?

No particular reason. I suppose the tax free aspect but doubt we would ever save enough for that to be an issue. We are open to a regular savings account too. I was wondering if that might be a better idea?

I suspect the answer is not an ISA, as the 'I' in ISA stands for indivudal, so it would have to be in one persons name. And however much went through the account would then come off that individuals ISA allowance (which could well be cut by a Labour chancellor, as they look to encouraging spending not saving!) There are plenty of instant access accounts paying a reasonable amount of interest - I'd use one of those

Thankyou Tryingtokeepgoing I think you are right - we want to keep it simple, so an instant access account sounds more feasible.

But any account is going to be in one person's name only? You can't have a joint account between 7 people.

You can open a joint account in two or more names, though finding a bank that'll do it for 7 could be a challenge! But putting that to one side, there is a finite limit on what can be put in an ISA, so using up some of that in one persons name on an account that isn't actually anyones really, and is not a long term investment, seems a bit silly. Epecially as the amount of interest being earned is negligible, and it's likely once split that it won't push anyone who benefits from the current £500/£1000 tax free interets level over it. Just make sure the account pays interest gross- plenty of bank will do that

I can see so many pitfalls here, OP. Better to save in your own accounts, I think.

This is where a Hyperjar card could come in very handy but I wouldn't put vast sums of money onto it. You could use it like a kitty. You wouldn't get interest because it is a pre-paid card, not a bank account.

The above poster is correct about there being pitfalls. I would put my money aside by myself.

I really wouldn't advise communal, why don't you all just pay for things as you go along. In the future there may be meals or things not everyone wants to participate in or there might be fallings out in which case having a communal pot of money to split makes things extra awkward. You can't save for more than one person in an ISA as it's for an individual.

Isa is individual.
Only one name on it
Anyone could pay into it but only one person has power over it
It s a tax thing.
You should not do this kind of joint thing with people like this each should do their own do not mix money and friends

Each save then use splitwise app to divvy up

Thankyou all. I appreciate all your points. Yes any account would be in one person's name, so in practice they could take it all.

I know I will get many raised eyebrows when I say the trust and bond between us is huge. The shortest period of knowing 3 of the group is 35 years and the longest for one person is 50 years.

We have been doing the lottery as a syndicate with it all being in one person's name for about 5 years.

However, I've read enough awful tales here on MN of families and friendships ruined by money so will think/discuss again.

I've never heard of hyperjar so will take a look, thankyou