Barclays ISA new launch 6.5% (merged)

mary

stphnstevey wrote: »

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

That's on the plus side.
On the down side is the length of time they take to transfer your ISA and how long your money is left lenguishing in an account which has just dropped its rate. Have a bitter memory of the length of time transferring from Halifax to A&L last time round. Three applications to transfer getting lost, talking to managers etc.
It might just be half an hour to do your bit, but that's not the whole story.

lisyloo

So apart from admin, what have you got to lose with ISA tarting?

Some interest (on ALL your capital).

Most ISA's are transferred by post.
A few organisations will back date but most don't, so you will lose a minimum of 1 days interest (on entire capital) whilst you transfer.
Most organisations use 2nd class post so more likely 2 or 3 days unless you are unlucky enough to catch a weekend or bank holiday.

It's not a huge deal but it's something to bear in mind in the calculations of "worthwhileness".

lisyloo

Have a bitter memory of the length of time transferring from Halifax to A&L last time round.

Experiences vary a lot so I don't think it's right to say "it's easy".

I also had bad experiences going from Halifax -> A&L.
I had several forms lost both in the post AND at the branch (it was at least 3 might have been 4).
I complained and got £25 good will gesture from Halifax.

Recently transferred to Ruffler.
Documents were returned by special delivery within 48 hours and ISA took about 1 week to transfer.

Vastly different experiences.

Something to bear in mind because some people do experience bad delays whilst stuff is "lost in the post".

stphnstevey

I'm sure I remember there is a specific time that they need to have transferred your ISA by???

If they dont meet their targets then I think you have a right to complain and expect compensation. Doesn't sound like a 'bad' experience if you come out with £25

On £3k at 6%, even if they take a week, which is long in my experience, ((3000x6%)/563)x7 = £2.23 loss for a £15 or £60 gain.

Bhamstudent

Details of this are now on the Barclays WWW:

http://www.barclays.co.uk/isa/

humfer

See that Barclays have launched their ISA at 6.3% (not sure how the 6.5% is quoted as states 6.3% on their site). Anyhow was going to go for NS&I which currently at 5.8%. With at least one more rate rise expected in the next month just trying to weight up long term gains. Yes will loose out on around £10 interest (assuming 0.25% rate rise taking NS&I to 6.05%) but the added benefit of continuing with NS&I in 08/09 (when Barclays will drop 1%) may sway me to go the NS&I route. Not sure though and would welcome any throughts....

thumshie

barclays don't follow the BoE rate. They could drop it to 4%+1% next week for all we know...unlikely but they ARE a bank

Kazza242

humfer wrote: »

See that Barclays have launched their ISA at 6.3% (not sure how the 6.5% is quoted as states 6.3% on their site). Anyhow was going to go for NS&I which currently at 5.8%. With at least one more rate rise expected in the next month just trying to weight up long term gains. Yes will loose out on around £10 interest (assuming 0.25% rate rise taking NS&I to 6.05%) but the added benefit of continuing with NS&I in 08/09 (when Barclays will drop 1%) may sway me to go the NS&I route. Not sure though and would welcome any throughts....

I'm in the same boat as you, trying to choose between Barclays 6.50% and NS&I 5.80%. Don't forget that the NS&I rate guarantee runs out on 5th April 2008, so it may not be competitive afterwards for 08/09 etc. It's likely that you would have to transfer out of NS&I in April 2008 anyway and also out of Barclays too because of the 1% drop in rate.

Of course, Barclays' rate is not guaranteed, but as it's a new account and the max deposit is £3K, I'm not sure they would drop the rate during 07/08. At the moment I am swaying slightly towards Barclays' offering, because if Barclays' rate remained at 6.50%, there would have to be three 0.25% rate rises for NS&I to beat the Barclays rate.

Barclays' 6.50% rate is the AER and 6.30% is the gross rate because they pay monthly interest, so if the money is left in the account you would receive a compounded rate of 6.50%.

oldfella

Barclays' 6.50% rate is the AER and 6.30% is the gross rate because they pay monthly interest, so if the money is left in the account you would receive a compounded rate of 6.50%.

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the T&Cs conflict with the sales page ...

How interest is calculated
Interest is calculated on daily statement balances and credited to the account annually, on or around 6 April and when the account is transferred or closed, if applicable. Interest will be paid without deduction of tax so long as you comply with the relevant ISA legislation.

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my thinking is similar to Kassa242 - YBS get the transfer because they have been doing well with their interest uplifts recently, its internet based, and I dont trust Abbey to keep their rates high in the longer term

Barclays get 2007/8 because 6.5% should be the best rate through the year

LittleVoice

The nice thing about NS&I (while rates are likely to rise) is that they immediately increase theirs in line, there's no delay to the end of the month or longer. By the same token, they would decrease the rate just as quickly.

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