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!

baldbloke_2

You can transfer an ISA at any time - nearly all banks or building societies allow transfers in to their ISA accounts.

You can do much better than the 4.3% you were receiving and you should not even consider leaving cash in an ISA paying 4.0%. Presumably Barclays don't want Cash ISA customers if they are offering such appalling rates.

Please check somewhere like https://www.moneyfacts.co.uk to see the rates that are currently available for Cash ISAs. You will be surprised.

Kazza242

KGriff the Barclays cash ISA used to only pay a competitive rate to savers with a £18K+ cash ISA balance. For savers with less than £18K, the rates were poor. I would never have considered Barclays for my cash ISA savers, even before they reduced their rates further.

- Bradford & Bingley's eSavings ISA will pay 5.15% from 3 September.

- Halifax's ISA Saver Direct currently pays 4.75% (this rate does not include the 0.25% rate rise made by the BOE. Halifax have yet to announce the new rate).

- Halifax also offer a number of fixed rate ISA options (1 year 5.15%, 2 years 5.30%, 3 years 5.35% and 4 years at 5.40%).

- Yorkshire building society offer a number of cash ISA accounts paying competitive rates.

Check moneysupermarket.com and the Moneyfacts 'Transfer an existing ISA' search tool for other options.