Not subscribing to an ISA - it gets cancelled?

bigpappa

For my father, he received the following letter from Nationwide.

HM Rules state that if you don't subscribe to your ISA for a whole Tax year or more you're required to complete an ISA renewal before you can start making subscriptions again.

We have not received a response to our letter therefore to ensure that the ISA remains compliant we enclose a cheque of £50.00 representing subscriptions you've made this tax year. We can confirm that the interest on your ISA has been adjusted to reflect this.

What's next?

If you wish to make further subscription during this tax year, please visit your local branch where you will be able to renew your ISA instantly.

eskbanker

The regulatory requirement to reactivate ISAs (that hadn't been funded for a whole tax year) was removed last year, but individual providers can still choose to operate that way:

https://forums.moneysavingexpert.com/discussion/comment/81330563/#Comment_81330563

This isn't 'cancelling' the ISA as such though, it's just a restriction on making further subscriptions.

Edit:

bigpappa said:

We have not received a response to our letter...

Why not?  Did he receive it?

bigpappa

So what does my father do now? Close the ISA? or put money in? If he has to put money in - how much so this doesn't happen again?

I believe he put £50 in last year - but that has been returned. This is all confusing. 

eskbanker

bigpappa said:

So what does my father do now? Close the ISA? or put money in? If he has to put money in - how much so this doesn't happen again?

I believe he put £50 in last year - but that has been returned. This is all confusing. 

The last line of your quoted wording explains:

If you wish to make further subscription during this tax year, please visit your local branch where you will be able to renew your ISA instantly.

so that's what he needs to do if he wishes to subscribe to it (his choice) - I'm not aware of any specific amount being necessary.

Or he's free to close it (or transfer it to another provider if he feels aggrieved) if he wants to, it's entirely up to him.

Albermarle

If he is only saving small amounts, then he does not need to save in a cash ISA.
He can just save in a normal non ISA savings account.

wmb194

bigpappa said:

For my father, he received the following letter from Nationwide.

HM Rules state that if you don't subscribe to your ISA for a whole Tax year or more you're required to complete an ISA renewal before you can start making subscriptions again.

We have not received a response to our letter therefore to ensure that the ISA remains compliant we enclose a cheque of £50.00 representing subscriptions you've made this tax year. We can confirm that the interest on your ISA has been adjusted to reflect this.

What's next?

If you wish to make further subscription during this tax year, please visit your local branch where you will be able to renew your ISA instantly.

Can he not renew it in online banking?

t0rt0ise

He could just leave the ISA as it is. He won't lose the money, he just can't add to it unless he completes the form etc. If he doesn't want to add to that ISA he could open a new one somewhere else. He can have as many as he likes.