What happens in this case?

Rusty190

Won't bore you with the full saga but, I've opened a fixed rate ISA and funded it with £20.

The account in question has a minimum balance requirement of £500 - I'm not going to add any further funds.

What will happen given that I've signed up to this account?

elsien

I’m going to take a guess that they will close it and return the money to you.
what do their terms and conditions say?

Ayr_Rage

Whatever the Ts and Cs of the product say will happen if you don't add the minimum in the timescale specified.

flaneurs_lobster

Have you checked the Terms? There should be a fixed period allowed to (minimally) fund the ISA after opening, typically 14-28 days.

If the minimum funding isn't made then the account will close and your funds will be returned.

I think your annual ISA allowance is unaffected.

Rusty190

I have read through the T's and C's but can't see any mention of what happens if you don't fund it to the minimum requirement.

There is information regarding not funding it at all, but nothing that I can see that covers this.

It's Santander if that helps.

friolento

If you are still in the cooling off period, you can ask them to close / void your account.

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/81976794#Comment_81976794

I recon that whatever the T&Cs say about not funding will probably apply to non-minimum funding too, with the addition of returning your funds.

Do you have a particular concern here? Is there a problem other than being down 20 quid (temporarily)?

surreysaver

If you don't tell is who the provider is, then we're all just guessing. But in all likelihood they'll close the account and return the money from where it came.

Edit: sorry, just noticed you told us it's Santander. Don't know, in this instance, but in my experience Santander's computers don't always enforce what's written in T&Cs. I wouldn't be surprised if the money just sat there.

Rusty190

https://forums.moneysavingexpert.com/discussion/comment/81976841#Comment_81976841

Just wondered if they send the debt collectors round for £480 I "owe" them or put me on a blacklist of some description?

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81976855#Comment_81976855

Not sure if you're being serious or not, but no, nothing like that!