Barclays ISA new launch 6.5% (merged)

stoptheworldIwannagetoff

Just read that Barclays are launching ISA on Friday. Small print says can't transfer into it from existing ISA. Sounds like a good product cos not linked to opening another account or buying other products.

I currently have my full allowance with Nationwide members ISA 5.50%

What is the best way forward - shall I just leave the Nationwide ISA alone at the end of this financial year and start the Barclays one on 6th April?

realaledrinker

And the catch is .....?

Bound to be an introductory rate.

ManAtHome

Will be a bit of a jump - their curremt cash ISA starts at 4.75% (may be a clue as to which direction the new one may be heading...), also the higher rate ones tend not to allow transfers in.

Nationwide not too bad - best one with transfers in is Kent Reliance at 5.7%. You're free to start up a new ISA in next tax year with anyone (I'm sticking with NS&I at 5.8% as they seem to have played fair so far).

MiserlyMartin

Actually there is now the Abbey paying 5.75% (above 9K, including 0.5% bonus until May 2008) which just beats Kent Reliance. I was about to open one after work but I just saw MSE Martin's email.

Or theres Ruffler Bank's 5.93% but minimum £15K balance.

Is this Barclays ISA the one that Martin is talking about in the latest Tips email? The one about to launch... If this is the same this is no good for transfers in so might as well open Abbey one.

ManAtHome

Braclays one - sounds like it could be (standard Barclays ISA starts at 4.75% - draw your own conclusions).

Don't think the Abbey rate is worth the bother - couple of quid over KR for the first year, then you'll be wanting to transfer (losing your couple of quid in the process).

KTF

I thought the ISA interest was backdated when you transferred it? I was going to open an Abbey one as well till I saw Martins email but as the Barclays one doesnt have transfer in then its useless to me so its back to Abbey.

mary

[QUOTE=ManAtHome;

Don't think the Abbey rate is worth the bother - couple of quid over KR for the first year, then you'll be wanting to transfer (losing your couple of quid in the process).[/QUOTE]


The thing is you might have to move from KR in a year's time as well.
I have £16.9K old ISA with A&L with the 5.7% ending 30th April. Will have to move it somewhere so was looking at Abbey. Like all things you have to be prepared to jump ship about every year just to get the best rate. The banks etc. seem to be more interested in your new money rather than your old money, as quite a few won't allow transfers in. I'm looking to take A&L 8.1% in April along with their poor Premier Current account, but I can fund it with £500 each month and then divert it immediately to 2 Regular Savers. The snag is I have to wait till 30 April before I do that and at that point I become a "new" customer again!

pbw

the only catch so far is that it includes a 1% bonus for 12 months. not bad really

Biggles

mary wrote: »

Like all things you have to be prepared to jump ship about every year just to get the best rate. The banks etc seem to be more interested in your new money rather than your old money, as quite a few won't allow transfers in.

I think it's not so much not being interested in your old money as limiting the total amount of interest they pay out. If they allow people to start transferring in ISAs of several years' standing, the total payout is limitless.

For this reason (and because I am immediately distrustful of banks that get you 'in' by offering a short-term 'bonus', like Barclays or ING) I shall go for one that a) allows a transfer-in and b) has the same rate for the whole year. My basis for this is that I am more likely to be offered a similarly competitive rate next year, and the year after, without having to lose interest moving my money every year. I may not get the best rate for my 'new' money each year this way, but I'm more likely to get a good return on my 'old' money for the long-term.

james3333

bloody typical, i have just switched from my barclays ISA, now they introduce this rate...:mad:

newfoundglory

stoptheworldIwannagetoff wrote: »

Just read that Barclays are launching ISA on Friday. Small print says can't transfer into it from existing ISA. Sounds like a good product cos not linked to opening another account or buying other products.

I currently have my full allowance with Nationwide members ISA 5.50%

What is the best way forward - shall I just leave the Nationwide ISA alone at the end of this financial year and start the Barclays one on 6th April?

I'd stick with Nationwide for most of your allowance. Their rate has been consistently good on the members' product for years and years and years now. All the others start off at a really high rate and plumet. Personally, i'm sick of switching, and i have most of my allowance with Nationwide too. I know if I switch now, i'll regret it in 12-18mths time. Given the interest you lose when you switch you are better off staying where you are.

However, it may be worth putting next years into Barclays depending on the account conditions. I have two small fixed-rate cash ISAs with Halifax, and I am considering fixed-rates for next tax year too.... lock-in while the rates are good, after next BoE MPC meeting.