Santander transfer form - small print

mangotree1

Hi,
I have just used the Santander ISA transfer form to transfer my old ISA to a new Santander cash ISA. On the form I had to sign a declaration which included the following paragraph:

I apply to subscribe for a Cash ISA for the tax year 2012/2013 and each subsequent tax year until further notice. (This doesn't commit you to paying in every year but ensures that if you do, we don't need to ask you to sign another form)

Does this mean that next year, come April 2013, I will not be able to open an ISA with another bank because I will have already opened my 2013 ISA automatically with Santander?
Thanks

scope

I think you can open as many accounts as you like, its the amount paid into them that cant be more than £5460 (I think) per year.

Is read it to mean the account will stay open after 2012/13, but that another account will be opened.

innovate

No it definitely doesn't. You can apply for a new ISA each tax year.

All banks have this clause - it's supposed to make it easier for you because if you want to (and are allowed to) pay more money into the same ISA next year, you don't have to first "apply" again, you just deposit your new money.

lizzyshep

Hmm, I'm a bit confused about this. My husband is planning to transfer last year's ISA to the Santander 2 year fixed rate, and to open a new ISA with the AA to put in this year's allowance. But if Santander have small print saying 'I apply to subscribe...' then surely this means they will expect him to pay new money in, and that this will stop him opening the AA account? This is all very confusing!

psychic_teabag

Yes, that statement is confusing.

I think the concensus is that applying to subscribe does not commit you to subscribing. And you can choose this year to be one of the years when you choose not to actually subscribe.

lizzyshep

psychic_teabag wrote: »

Yes, that statement is confusing.

I think the concensus is that applying to subscribe does not commit you to subscribing. And you can choose this year to be one of the years when you choose not to actually subscribe.

Thanks, that clears it up

Mikeyorks

lizzyshep wrote: »

But if Santander have small print saying 'I apply to subscribe...'

It leaves the option open for him to 'subscribe' ..... without them getting a new application. But he doesn't have to (subscribe).

Mikeyorks

mangotree1 wrote: »

Does this mean that next year, come April 2013, I will not be able to open an ISA with another bank because I will have already opened my 2013 ISA automatically with Santander?

No. It's covered by your quote :-

(This doesn't commit you to paying in every year but ensures that if you do, we don't need to ask you to sign another form)

lizzyshep

Mikeyorks wrote: »

It leaves the option open for him to 'subscribe' ..... without them getting a new application. But he doesn't have to (subscribe).

Thanks very much

hermante

IIRC there was a thread on here about some people getting forms to sign at the start of a new tax year because the previous form did not include that "subsequent year" clause.