A simples guide

Barclays Cash ISA

Barclays is a banking giant in the UK and it’s no surprise they are a major player on the Cash ISA (Individual Savings Account) scene. If you are thinking of opening a Barclays Cash ISA, make sure you have all the facts, you’ve checked the interest rates and you’ve compared them with the competition using our Cash ISA comparison service.


How does a Barclays Cash ISA work?

A Barclays Cash ISA account is similar to a savings account, but the interest you earn on your savings through the ISA will be tax free up to £15,240 during the 2016/2017 tax year.

This is separate to the new Personal Savings Allowance rules introduced 6th April 2016 which mean that any savings account held by a basic rate taxpayer can accumulate £1,000 of tax free interest per year, whilst higher rate tax payers will have a reduced allowance of £500. If your total income is below that of £17,000, you will not be subject to any tax on your interest accumulated from savings.

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Which Barclays Cash ISAs have the best terms and interest rates for me?

There are various types of Cash ISAs available at Barclays, each with their own terms and conditions.

The Barclays Instant Cash ISA offers a lower rate of interest than some of the other options however it provides instant access to your savings should you need to withdraw funds. You can open an account with just £1.00 and take advantage of the following interest rates:

  • £1.00 – 14,999.: 0.80% AER/tax-free pa variable
  • £15.000 - £29,999: 0.90% AER/tax-free pa variable
  • £30,000 and above: 1.00% AER/tax-free pa variable

Another option would be a Barclays Flexible Cash ISA which offers a two or three year fixed-rate term (interest rates above that of a Barclays Cash ISA). Both allow you to make up to three withdrawals free of charge with each one up to 10% of the balance.

  • 2 Year Fixed Term: 1.25% AER/tax-free pa
  • 3 Year Fixed Term: 1.5% AER/tax-free pa. To be eligible for this rate, you need to be a Premier customer, either paying in £75,000 or more into a Barclays current account or having a minimum of £100,000 saved or invested with Barclays.

A Barclays Help to Buy ISA could also be another option for you if you are a first-time home buyer. You can save up to £1,200 in the first calendar month and up to £200 monthly onwards at a generous interest rate (2.27 AER/2.25% tax-free pa). On top of this, you will receive a 25% Government bonus on your acquired savings.

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Is a Barclays ISA right for me?

Careful consideration should be given to the different types of Cash ISA’s on offer as it’s important to make the correct choice. Whilst an Instant Cash ISA may be suitable for some, a 2 or 3 Year Flexible Cash ISA may be more viable for others. We hope that by using our Cash ISA comparison service you will be able to make the right choice.

All Barclays ISA account details are based on information provided on barclays.co.uk data on 26 April 2016

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