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MSE News: Got an old Barclays NISA? Check your rate's not about to drop
Former_MSE_Helen
Posts: 2,382 Forumite
"Over one-and-a-half million Barclays NISA customers will see their rates drop this autumn"...
Read the full story:
Got an old Barclays NISA? Check your rate's not about to drop
Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
Got an old Barclays NISA? Check your rate's not about to drop
Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
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Comments
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I have received this letter and I am not very happy about it, since I could have subscribe to a new ISA in April instead of continuing in the Barclays one that is dropping now.
Can we do anything about this? Is it possible to start subscribing to a new one?
Thanks0 -
You can't just start subscribing to another new cash ISA in this tax year if you have already been contributing to the Barclays one since 6 April - unless you formally transfer your Barclays current year contributions to the new place too.
You simply fill out a form with your new provider of choice that authorises them to go and get your current year contributions from Barclays and set up a new account for you. Then you will be off and running with a new provider and you won't have lost your tax status on the funds transferred. You can also have them transfer previous year contributions from Barclays too, at the same time.
Some ISAs don't accept contributions from previous tax years (because there's a limit on how much they want to give a decent interest rate on) so you might need to shop around to find the perfect provider (or mix of providers) to take over your Barclays money. But cash ISA transfers are quite quick and straightforward these days, so no need to stay with Barclays if you don't want to.
In the course of window shopping you may find the best net returns on cash are found outside ISAs and just close it altogether. Or you might decide to use a S&S ISA if you're putting money away for the long term. Lots of choice out there beyond the low rates offered by instant access cash ISAs.0 -
Variable rates can be changed at any time, provided notice has been given as detailed in the T&Cs.
You can request a formal transfer of your current year's deposit to elsewhere if the new provider accepts transfers in.
If the new provider does not accept transfers in, there is still a way out by making a self transfer which is allowed once a year. See clauses 12 ff in this document: http://www.hmrc.gov.uk/isa/isa-guidance-notes.pdf
If the total you want to save in a cash ISA this year is less than £7,500, it's even easier: just withdraw up to £7,500 from Barclays, and then deposit up to £7,500 into the new ISA of your choice. You will have used your £15,000 allowance if you do this with the max £7,500.
I haven't read the MSE article, so apologies if I just repeated what they said.0 -
Just received my letter from Barclays...find it very misleading..quote
" If you have subscribed to your ISA during a tax year and then close the account, you will not be able to re-open the account or subscribe to another cash ISA either with us or any other ISA manager in the same tax year"
When I read this I thought I was stuck with my Barclays ISAs until April 2015 , thank goodness I read the posts above!
I'm sure most people won't though and just leave the money with Barclays, thinking they can't transfer it !
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Just received my letter from Barclays...find it very misleading..quote
" If you have subscribed to your ISA during a tax year and then close the account, you will not be able to re-open the account or subscribe to another cash ISA either with us or any other ISA manager in the same tax year"
It's strictly true though - if you close your ISA not transfer it, then you cannot open another one to pay into this year.
But as above the best rates are on current accounts and no ISA matches the 5% on those even when tax is taken off.Remember the saying: if it looks too good to be true it almost certainly is.0 -
I've got a letter about this too.
I currently have these Barclays ISAs from previous tax years, which will convert to 'Instant Cash ISA Issue 1':
Loyalty Reward ISA (2.03% AER).
Direct Cash ISA (1.80% AER).
Golden ISA (1.80% AER).
At the start of the 2014/2015 tax year in 6 April, I went into branch to query about ISAs. They told me to put the current tax year money into the Loyalty Reward ISA, as it pays the most interest. Also, before putting my money for the current tax year into the Loyalty Reward ISA, I queried if I can transfer-in the Direct Cash ISA and Golden ISA monies into the Loyalty Reward ISA, and they say no. The reason is that Loyalty Reward ISA doesn't accept transfer-in. After that, I put my first monies (in April) for this tax year in the Loyalty Reward ISA.
Now I have 3 ISA's, which will convert into 3 'Instant Cash ISA Issue 1 in November.
The letter states that I can consolidate those 3 ISAs above into one ISA account, which is 'Instant Cash ISA Issue 1', by using the 'transfer-in' process. However, I am already putting money in the Loyalty Reward ISA since April.
Can I still request a 'transfer-in' of those 3 ISAs to the Instant Cash ISA Issue 1, despite already putting money since April? This means in the end I will have one ISA account. I don't want to end up with 3 'Instant Cash ISA Issue 1' ISA accounts.
I hope you can assist.0 -
How much is in your ISAs?Remember the saying: if it looks too good to be true it almost certainly is.0
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In the short to medium term you would do better to just put this sort of money into current accounts http://www.moneysavingexpert.com/savings/savings-loophole0
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As above you can get 5% on £6500 of that money and 3% on rest. It might be taxed but you'll still beat any ISA. If rates improve next year you can still put it all back in.Remember the saying: if it looks too good to be true it almost certainly is.0
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