The Best Mini Cash ISA Article Discussion Area

exel1966

The underlying rate is 5.5% AER variable + a 1.00% bonus for 12 months from date of opening.
Yes the rate will change in 12 months time. What's confusing ? The option to take up this ISA may be withdrawn at any time so get it whilst it's available.

masonic

echo wrote: »

[So what it’s saying is that the rate can change so I might not necessarily get that rate for the whole of the year.right now I’m thinking between barclays and the bradford and bingley Fixed rate ISA(8)

No, the rate is not guaranteed, but few are. If you want certainty, you'll need to go with a fixed rate account, or one with a rate guarantee. Otherwise, you take the gamble Barclays will keep the rate up for at least a year, and transfer out quickly if it turns out they don't.

echo

think i'm gonna go with the b&b option cos i know the rate will stay the same.

mosaic_2

If you can just leave any time..it seems a good idea to go with a high interest rate while it's on offer, then leave when you see a better deal.

Why do you have to transfer out quickly if you want to go to another higher interest isa? Can't you just leave any time?

Plarka_2

I'm confused too, is the Barclay's ISA 6.5 or 6.31?

6.50% AER (6.31%† tax-free**) includes 12-month introductory bonus. Interest paid monthly.

I thought it was all tax free, so why are they saying 6.31 tax free?

Rachel

jem16

Plarka wrote: »

I'm confused too, is the Barclay's ISA 6.5 or 6.31?

6.50% AER (6.31%† tax-free**) includes 12-month introductory bonus. Interest paid monthly.

I thought it was all tax free, so why are they saying 6.31 tax free?

Rachel

The 6.31% is the monthly rate. If you keep the interest in the ISA it will become 6.5% annually as the interest is compounded over the year.

It is all tax-free, monthly or annually.

bashful

jem16 wrote: »

The 6.31% is the monthly rate. If you keep the interest in the ISA it will become 6.5% annually as the interest is compounded over the year.

It is all tax-free, monthly or annually.

a) That is really helpful jem 16. However, I can't remember being asked whether I wanted the interest paid to me monthly or compounded - will this be a supplementary question from Barclays?

b) Also, if compounded and you have a £3k ISA, wouldn't that take it over the limit?

c) I took my application in to Exeter Barclays on 2 April and have had nothing in the post and the cheque hasn't been cashed. I want to take out another ISA for 2007-8 and assumed I could easily do this once my first ISA was registered etc. Currently that £3k is in a Halifax websaver so I am losing interest the longer this takes. I emailed Barclasy earlier this week but, as expected, no reply. What best to do please - sit it out and wait the BoE base rate change?

This is my first post to any of MSE's forum. I have been getting the weekly emails for a couple of months now and find the hints and tips fascinating and useful. An awful lot to take in though and it does take a bit of time.

Best regards to all the experts and contributors on this great website!

Brian

bashful

Sorry folks - ignore this message - I have now posted it to the more appropriate "Barclays Tax Beater Cash ISA - experiences so far " thread!

B

jem16

bashful wrote: »

a) That is really helpful jem 16. However, I can't remember being asked whether I wanted the interest paid to me monthly or compounded - will this be a supplementary question from Barclays?

I don't know as I haven't applied for the Barclays ISA. However I would imagine you would have the choice of monthly or annual interest.

b) Also, if compounded and you have a £3k ISA, wouldn't that take it over the limit?

It doesn't matter as the interest doesn't count towards your allowance. At the end of the year you will have £3000 plus interest.

c) I took my application in to Exeter Barclays on 2 April and have had nothing in the post and the cheque hasn't been cashed. I want to take out another ISA for 2007-8 and assumed I could easily do this once my first ISA was registered etc. Currently that £3k is in a Halifax websaver so I am losing interest the longer this takes. I emailed Barclasy earlier this week but, as expected, no reply. What best to do please - sit it out and wait the BoE base rate change?

If you read the Barclays thread everybody is in the same position. They are taking forever to open accounts. Some people have got fed up and gone elsewhere.

Dunscrimpin

Hi,

Still haven't got round to taking out this years Mini Cash ISA entitlement.
With the B of E rate rising 0.25 % today, what is the best strategy ?
Should I wait ( and how long before the effect filters through to the updated rates from the providers ? ) until new fixed or variable rates become available,
or jump now on the basis of not wasting any more time ?

Who are the current favourites for fixed and variable offers ?

Any thoughts greatly appreciated.

D