Automatic subscription to ISA for subsequent years? (Barclays Golden ISA Issue 2)

discopatrick

I've just opened a Barclays Golden ISA Issue 2.

Part of the online registration form had a declaration along the lines of "I agree to subscribe to the Barclays ISA for the tax year 09/10 and all subsequent tax years until further notice".

Rather than complete the form online I decided to phone them and query this statement. To be honest I can't really remember what they told me, other then assuring me that it was all fine. I want to get a second opinion!

As I understand it, you can only subscribe to one ISA per tax year. This leads me to believe that if Barclays automatically subscribe me to the same ISA in the next tax year, I can't subscribe to a different one next year. Therefore I should give them notice immediately that I don't want to re-subscribe next year - I want to keep my options open!

Or does it simply mean that they'll keep this year's allowance in that ISA, and I'm still free to subscribe to a new one next year?

I will phone them again now, though I'm not hopeful of a straight answer, so if anyone else could advise me I would appreciate it! Thanks.

discopatrick

Well fancy that. I got a very straightforward and helpful answer.

Basically, by re-subscribing each year, the account will remain open and my money will accrue interest. However, if I don't pay money into the account next tax year then I'm still entitled to susbribe to a different ISA and pay into that one instead.

jh2009

Thanks, thats interesting, and makes sense.

I always thought it was just standard wording that suggested you would continue to pay into it each year forever, but this wording was not really legally binding, so i always just ingored it whenever i set one up.