Barclays Golden ISA - issue 3 / 3.25% AER now available

blueberrypie

ashleek007 wrote: »

Is it best to put this years allowance into my current Barclays ISA and top it up to ~14k? Then transfer everything to a higher rate ISA like the HBOS, 3% AER?

Or should I keep the 9k in the Issue 1 and put the 5k in a new Golden ISA Issue 3?

Or is there another better way that I haven't thought about?

Two basic principles:
- transfer old funds to wherever is paying the highest interest rate on transferred-in funds
- put new funds into an ISA with whoever is paying the highest interest rate on new funds

In a comparison between Barclays and Halifax, that means transferring the funds in your Barclays ISA to Halifax (where they'll earn 3%) and putting the current year's allowance into a new Barclays Golden ISA (where they'll earn 3.25%).

You can get higher rates with, for example, Nationwide and Santander, or on fixed-rates (tied up for a term of a year or more), but assuming you've thought about those options and decided Barclays/Halifax is the combo you're happy with, the above is the route that will earn you the most interest.

rosscouk

I am not 100% sure about how ISA's work.

I currently have a Barclays golden ISA year 1 (£3700) and a year 2 (£3000). Now as they both probably have rubbish interest I need to think about what I can do this year.

Could I do a balance transfer from the two accounts to one ISA, say the nationwide e-ISA (my mortgage is with them too)?

Then open up a new Golden ISA year 3 with Barclays for my 11/12 savings?

Does that sound right? Or have I got it wrong.
Cheers
Rossco

blueberrypie

No, you've got it right. Just make sure you do the transfer using the ISA transfer process. Ask Nationwide for a transfer form for each of the ISAs you want to transfer in - fill it out, hand it back, and they'll take care of the rest. You can go ahead and open the new Barclays ISA in the meantime.

rosscouk

Thanks for the reply, turns out I can't open the ISA using my internet login for mortgage I need a card based account. hmmmm, i could open the account, but just don't need more plastic hanging around.

Baldur

rosscouk wrote: »

Thanks for the reply, turns out I can't open the ISA using my internet login for mortgage I need a card based account. hmmmm, i could open the account, but just don't need more plastic hanging around.

You can apply by phone or in branch without being a Barclays current a/c holder.

Apply for a Golden ISA – Issue 3

• Apply in Online Banking if you're an existing Barclays current account customer
• You can also apply by phone or in branch

rosscouk

Sorry, I meant Nationwide ISA for the balence transfer. I thought as I used internet banking with nationwide I could take advantage of their E-ISA, however I need a card based account. I am hesitant to set up another online account having already got Barclays and Nationwide. It looks to be easy enough to set up Barclays Golden ISA issue 3 using my internet banking.
Thanks

Baldur

rosscouk wrote: »

Sorry, I meant Nationwide ISA for the balence transfer. I thought as I used internet banking with nationwide I could take advantage of their E-ISA, however I need a card based account. I am hesitant to set up another online account having already got Barclays and Nationwide. It looks to be easy enough to set up Barclays Golden ISA issue 3 using my internet banking.

The Halifax ISA Direct Reward only pays slightly less than the e-Isa, permits online opening and doesn't require you to hold another account with them (pays 0.2% bonus if you do). I transferred two previous tax years' ISAs to them recently.

rosscouk

Thanks Baldur, that is really helpful.

I have set up my barclays year 3.

Just to check, I am allowed to set-up another isa with Halifax ( Halifax ISA Direct Reward) because I am going to transfer over two existing ISA's currenly with Barclays. I cannot save any more in this account as I am saving for this year with my Barclays year 3.

One question, how do I set up my Halifax ISA when I can't put any new money in? The only reason I ask is Halifax say I need to set up a new ISA prior to transferring the money and I can't do that with adding 'new' money in.

Cheers
Rossco

blueberrypie

rosscouk wrote: »

Just to check, I am allowed to set-up another isa with Halifax ( Halifax ISA Direct Reward) because I am going to transfer over two existing ISA's currenly with Barclays. I cannot save any more in this account as I am saving for this year with my Barclays year 3.

That's right.

One question, how do I set up my Halifax ISA when I can't put any new money in? The only reason I ask is Halifax say I need to set up a new ISA prior to transferring the money and I can't do that with adding 'new' money in.

You don't have to fund the ISA at the time you open it. Your transfers-in are your way of funding it - simply ask for a transfer form when you open the ISA.

Baldur

blueberrypie wrote: »

You don't have to fund the ISA at the time you open it. Your transfers-in are your way of funding it - simply ask for a transfer form when you open the ISA.

From memory, there's a section in the online application which asks how you intend to fund the ISA, I entered "by ISA transfer" and printed off 2 x transfer forms (1 for each old Cash ISA account) from HERE, which I then dropped in to the local branch.