Barclays ISA new launch 6.5% (merged)

sweetmoneysaver

oldfella wrote: »

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?

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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

Sorry probably being a bit thick here .... the 1% bonus for 12 months .... would this be voided if you made a withdrawal in that time or closed the ISA or just a case of the rate dropping after 12 months? If applying on-line would you be able to make an automatic transfer from a Barclays account thus maximising the 12 months or do they need a cheque and signed form? Has anybody applied on-line?

sweetmoneysaver

Just seen this so one question answered ....

What you'll need

• To complete a Cash ISA application using this form, you'll need a connection to a printer to print the final form.

What's next?

If you're an existing Barclays customer, once you've filled in the application form, simply print it off, sign it, and either post it to the FREEPOST address below or take into your nearest branch.
Barclays ISA Office
Freepost RRHT-KXRR-JZCU
GLASGOW
G58 1AA

Moggles_2

Originally Posted by Kazza242
It's likely that you would have to transfer out of NS&I in April 2008 ...

Unfortunately, NS&I don't allow transfers out to another provider

moneyandmountains

Moggles wrote: »

Unfortunately, NS&I don't allow transfers out to another provider

This is INCORRECT.

NS&I do not allow transfers into their ISA from existing ISA holdings.

However, they do allow transfers out.

From NS&I Webpage
Transfers
31. You may transfer your Direct ISA (in accordance with the ISA Regulations) to a different ISA manager by writing to NS&I. The transfer will depend on the other ISA manager agreeing to the transfer. Transfers into a Direct ISA from another ISA manager are not permitted.

Bhamstudent

Yes they do.... From the NS&I site:

Transfers
31. You may transfer your Direct ISA (in accordance with the ISA Regulations) to a different ISA manager by writing to NS&I. The transfer will depend on the other ISA manager agreeing to the transfer. Transfers into a Direct ISA from another ISA manager are not permitted.

I think you're thinking of transfers in, which they don't allow...

humfer

Moggles wrote: »

Unfortunately, NS&I don't allow transfers out to another provider

I didn't realise that!. So if I understand that right, if you wanted to move your money or no longer keep your money with NS&I you would have to close the account and transfer the money into a non ISA (i.e. taxed) account?

EDIT _ IGNORE THAT - 2 POSTS ENTERED WHILST I WAS TYPING.....

Moggles_2

Originally Posted by moneyandmountains
NS&I do not allow transfers into their ISA from existing ISA holdings.
However, they do allow transfers out.

Many thanks for this.

When I phoned up NS&I recently and specifically asked about transfers out, I was told this was not allowed, but the wording on its website is clear enough. Cheers.

magpiejay

The 6.5%er Martin was talking about in last week's newsletter has been launched. Unexpectedly by Barclays. the catch is it includes a 1% bonus rate for a year, so one for switchers, but sadly doesn't allow transfers in, so ING may still be a better option if you want to move the lot.

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

masonic

There's discussion about this ISA here, here and here.

Interest is paid monthly, so 6.5% is the AER, which equates to 6.31% gross.

Edit: Oh, and ING don't accept transfers either.

jinkssick

I opened a NS&I at 5.80% and put £1,000 when I opened it which was the beginnings of March. I now feel like changing to this one, is it worth it seeing as they are going back to 5.5% in a years time.

Can I cancel NS&I as the new year aint started?!