Barclays ISA new launch 6.5% (merged)

stphnstevey

Barclays are going to be busy this Friday!
(and then again on Wednesday when Martin splls the beans in the weekly email!)

Scully's_Girl

Curiously read about the 6.5% ISA in this weeks newsletter. Very interested as I'm researching a good ISA for my mother in law, who left it a tad late for 2006. However, won't next week be too late for people to get their applications in? What about the onslaught of applications this bank will no doubt get, will it cripple them like Abbey was a few years back? Does the ISA count for 2006 if you get the application in before 5 April? I just don't want to wait too long and let my MIL miss her last chance to get an ISA for this year.

lisyloo

Who is this mystery ISA with?
If you don't know how are you going to apply for it?

Yes, any great offers are likely to be heavily subscribed and there will be delays.
They should however date applications to when they were received.

If you don't want you MIL to miss out then you should simply get on with it.
If you end up making the wrong decision due to rushing then in most cases you can transfer your ISA later on which is better than leaving it too late and missing out on the allowance.

m_dorph

lisyloo wrote: »

Who is this mystery ISA with?
If you don't know how are you going to apply for it?

Yes, any great offers are likely to be heavily subscribed and there will be delays.
They should however date applications to when they were received.

If you don't want you MIL to miss out then you should simply get on with it.
If you end up making the wrong decision due to rushing then in most cases you can transfer your ISA later on which is better than leaving it too late and missing out on the allowance.

I assume the mystery ISA is the Barclays TaxBeater one.
http://www.barclays.co.uk/isa/

Completed application forms for the 2006/07 tax year must reach us by 5th April 2007. Although you can apply now the Tax Beater Cash ISA will not be available until 16th March 2007.

So you should still be able to make it for 2006/7..

You can apply directly online - I haven't tried how easy/quick it will work since I already have opened an ISA this year

:-)

Ian_W

And you should note the Barclays' offer includes this:

The above rate includes a 12-month introductory bonus of 1% gross payable from the date you open your account with a minimum of £1, after which time the rates will reduce accordingly. The bonus offer and the above rate may be withdrawn at any time without notice.

Remind you of any ads on the tele about big juicy worms then throwing you in the keepnet after you're hooked?
OK if your MIL is happy to transfer after 12 months but unlikely to be a market leader long term IMO.

Kazza has done a really good thread about what mini cash ISA's are currently available a bit lower down the ISA page [as I post] that is certainly worth checking out before you decide.

Milarky

if you've already subscribed to a Mini Cash ISA or Maxi ISA in the 2006/07 tax year, you can still take advantage of our Tax Beater Cash ISA in the 2007/08 tax year.

Good!

Transfers from an existing ISA, either with us or with another ISA provider, are not allowed.

Oh! And the current rate of 6.5% (including 1% bonus for 12 months) may not be available. So just what is the underlying rate [5.50%] tied to - and is it fixed or variable?

Gambler

Biggles wrote: »

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.

Totally agree, I switched to YBS a few months back as they allowed transfers in and I'd rather keep the ISA in one place.

oldfella

Oh! And the current rate of 6.5% (including 1% bonus for 12 months) may not be available. So just what is the underlying rate [5.50%] tied to - and is it fixed or variable?

---

3.5 At any one time, the minimum interest rate shall be no less than 2 per cent below the current Bank of England base rate. If such rate increases, our interest rate will increase to reflect such a change within one calendar month.

3 other odd things ..
1 it says interest is monthly on the main page and annual in the T&Cs
2 interest rate is 6.5% AER (6.31% tax free). Not seen that definition before - it sounds like 6.31 is the monthly interest rate, or not !
3 the 12 months starts from account opening - seen this before with Barclays, there can be a long gap between when they receive the form which I suspect is how they define account opening, and the first deposit

Mike

stphnstevey

It's easy to transfer your ISA fund (and don't they back date the interest or something when you do transfer). So apart from admin, what have you got to lose with ISA tarting?

Highest normal ISA is about 6%.
A+L ISA ~8%, Barclays ISA 6.5%
On £3000 could make £15 or £60 (0.5%-2%) more per year

So even if the admin took an half an hour, you would still get around £30 or £120 per hour!!!

KTF

pbw wrote: »

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

No transfers in either.