Barclays Cash ISA - Golden ISA issue 2 - 3.10%

my_garden_shed

it will drop - any day now, but the rate even then will be 2.55% which isn't bad for instant access. It's not worth moving it for, but it would be different if it dropped to 0.5%

Kazza242

jimbow25 wrote: »

Choosing santander for the 0.4% difference in rates assumes you will swiftly move the money on after the year - I haven't done the maths but as Barlcays 'only' drops by 1% at the year end vs. Santander which drops by a lot more, a few months of leaving the money in the account beyond April 2011 would wipe out any benefit you gained in the year.

But yes I agree there's not much of a reason to choose the Barlcays account .

It isn't just about the 0.40% difference in rate though. The Santander and Alliance & Leicester Flexible ISAs have a much better rate guarantee during the first 12 months following account opening. They guarantee to pay Bank of England base rate + 3.00% for 12 months. Therefore should the BOE base rate increase, the Flexible ISA rate will have to increase also.

Granted the guarantee only lasts for 12 months, but so does the bonus on the Barclays Golden ISA. If I opt for the A&L/Santander Flexible ISA then I will initiate a transfer out before the rate drops (as I did for all three of the Barclays ISAs I've opened for the last 3 years). I am not too impressed with the Barclays ISA rate this time. I think that they could have done better and should have offered around 3.60% to beat A&L/Santander's offering.

koopa_coffee

I imagine it will drop further once the new tax year starts - Issue 1 that is.