A simples guide

Compare Barclays ISAs

Barclays is a 325-year-old banking giant, so they’re used to offering a wide range of financial products, including ISAs . There are five ISAs to choose from, including cash ISAs, investment ISAs and a help-to-buy option, so there’s bound to be one that fits the bill. Here’s a rundown of what’s on offer as of 31 March 2017.

How does a Cash ISA work?

An ISA is an ‘individual savings account’. You can open one if you’re over 16 (18 for some products, including stocks and shares ISAs) and live in the UK.

A Barclays cash ISA 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. There’s also an annual allowance of how much you can put into an ISA, which changes every financial year. For 2017/2018, it’s £20,000.

Standard savings accounts, on the other hand, are liable to tax. If you’re a lower-rate taxpayer, you can earn up to £1,000 interest tax free; any interest you earn after that is subject to tax. For higher-rate taxpayers, the allowance is £500. If you earn £17,000 or less each year, you won’t pay any tax on your savings interest at all.

Which Barclays Cash ISA is right for me?

  • Instant cash ISA: You can open one of these with just £1. You can take money out whenever you like, and you can access and manage your account through online banking, in branch or by phone.
  • 2 year flexible cash ISA: The interest rate on this is fixed for two years – that means it will stay the same for that period. But you’re limited to three withdrawals a year – each one up to 10% of the balance. It’s a good option if you’re not too bothered about getting to your money and can afford to leave it ticking along.
  • 2 year premier flexible cash ISA: A bit of a mouthful but, in short, you can only open one if you’re a Barclays Premier banking customer. If you are, you’ll get a fixed interest rate for two years. As with the standard flexible cash ISA, you can make up to three withdrawals a year, each one up to 10% of the ISA balance.

 

Compare Barclays ISAs

How does an investment ISA work?

Unlike cash ISAs, where you invest your money and gain straightforward interest, an investment ISA (also known as a stocks and shares ISA) tracks the stock market. That means the money you put into your ISA isn’t guaranteed and the return you get will depend on how the market performs. 

Should I open a Barclays ISA?

It’s up to you, but you should always carefully consider the different types of cash ISAs on offer as it’s important to make the right choice for you and your money.

Don’t make the assumption that you need pots of money to open an ISA – just £1 is often enough and saving a little each month soon adds up. So, make the most of your hard-earned cash and invest it wisely. If you’re not convinced by ISAs, then find out whether a savings account would suit you better. Whatever you do – make sure you comparethemarket.com

All information correct as of 31 March 2017.

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