Barclays Bank interest rate rise?

KGriff

My wife and I each opened a Barclays mini cash ISA in sept 2005 and the interest rates were:

£18,000+ 5.00%
£12,000+ 4.60%
£9,000+ 4.45%
£3,000+ 4.30%
£10+ 4.20%

so in 2005 we were earning at 4.20%

In 2006 we added another £3000 so we ended up earning at 4.3%

In april 2007 we were both looking forward to depositing another £3000 and earn 4.45%.

2 weeks ago the bank of England raised their interest rates from 4.5% to 4.75% so we started to expect all the interest rates to rise.

On looking at the Barclays website today it now says the interest rates are as follows for a mini cash ISA:

£18,000+ 4.55%
£12,000+ 4.15%
£1+ 4.00%

So rather than going up, the interst rates have actually come down and furthermore in April 2007 the rate will still be 4% as the £9000 tier has been removed.

There is no doubt that my wife and I will "transfer out" the money in april to some other ISA account with a higher rate of interest but the sad bit is we have not even been notified of the interest rate change or the removal of the tiers for increment.

We have both banked with Barclays for over 30 years and we sadly feel let down.

The same has happened with Barclays e-savings account they have dropped the interest rate shortly before the Bank of England rate rise... if Barclays were to announce a rate rise now for their savings accounts it seems the truth is ... they would only be putting the rates back to what they were.

Can anyone explain why savers are being dealt such an unfair deal?

Can someone tell me if you can transfer money in a mini cash ISA mid-way through the year or do we have to wait until April 2007 before transferring?

The interest rate rise is not always good for savers and it is borrowers who will suffer... one man's loss is not always another man's gain!

Sillychuckie

You can transfer at any time, and I suggest you do.
Barclays make a fool out of you by giving you such low rates for one reason...

Because people like you don't bother switching.
Sorry to be blunt, but there are too many folk that use the excuse "but I have been with them for X years". You shouldn't feel any loyalty towards them if they aren't prepared to offer you good rates as a result.
Switch now and you should be able to get around 5% (regardless of how much is in there). You'll have to look elsewhere on the MSE site/forum for the best ISA right now.