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 works in a similar way to a savings account - with one important difference. Any interest that you earn on your savings through the ISA will be tax free up to your yearly allowance.

Everybody has this yearly allowance which can be saved in an ISA tax free. In 2016/2017 this is set at £15,240. In 2017/2018 it will increase to £20,000.

ISAs work independently of any bank accounts you may have, and the interest earned in your ISA is tax free irrespective of any interest you earn in your bank account.

Bank account interest is governed by Personal Savings Allowance rules introduced on the 6th April 2016. These allow any savings account held by a basic rate taxpayer to accumulate £1,000 of tax free interest per year. For higher rate taxpayers, the allowance is set lower at £500, while if your total income is below £17,000 per annum, you’ll not have to pay any interest on your savings.

Which Barclays Cash ISA is right 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 but it does provide instant access to your savings should you need to withdraw funds. You can open an account with just £1.

Another option is the Barclays 18 Month Flexible Cash ISA which comes with an 18 month fixed-rate term.

Again, the ISA can be started with just £1 and allows up to 3 withdrawals free of charge, although each one can’t be more than 10% of the available balance.

A Barclays Help to Buy ISA is the final Barclays cash ISA option and could help 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. On top of this, you will receive a 25% Government bonus on your savings.

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Is a Barclays ISA right for me?

Careful consideration should be given to the different types of Cash ISAs on offer as it’s important to make the right choice for you. 

Whilst an Instant Cash ISA gives you instant access to your money, if you’re able to commit for longer you could benefit from the higher returns of the 18 Month Flexible Cash ISA.

It’s always worth comparing your options before you commit to any specific cash ISA. We’re here to help you do that. Try it today and find the right ISA for your circumstances using our cash ISA comparison service.

All Barclays ISA account details are based on information provided on www.barclays.co.uk on 9th November 2016

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