Barclays Tax Beater Cash ISA - experiences so far (merged)

ukdutypaid

MiserlyMartin wrote: »

I don't suppose they will increase the rate on this ISA following the bank move recently? Still waiting for a written response to my complaint about slow opening and not backdating interest. Barclays - they make me mad

Interesting, but clause 3.5 of the Mini Cash ISA (not Tax Beater, T&C's), which have arrived with my confirmation of backdated interest, states
"If such rate (BoE BR, sic) increases, our interest rate will increase to reflect such a change within one calender month."

Mmm, wonder what means?

ukdutypaid

bristolleedsfan wrote: »

i may be wrong my belief is that tax beater rate is 6.31%, interest is paid monthly rather than annually hence the AER of 6.5% because if interest paid monthly is left to accumulate u are effectively getting interest paid on the interest the following month (s) i stand 2 be corrected :cool:

Sorry, don't follow that. "interest on interest". That's the basis of compound interest, full stop.
The difference between the 6.5 AER and the 6.31 Gross, is somehow down to monthly rounding........... and the alchemy of the calulations of actuaries.
If anybody's got the original little leaflet, I believe it's got the 0.0 whatever % in there.....
Seriously, it's a right E=MC2............................
Even so there must be a day rate 0.00 something or other, that it equates to, so we can all use it in a spreadsheet....

Only way I get my statement to add up is if I do
6.5 or 6.31 / 326 days!
divided by 365 and the interest works out lower than they've got it at!

Can anyone duplicate their calculations?

jem16

ukdutypaid wrote: »

Sorry, don't follow that. "interest on interest". That's the basis of compound interest, full stop.

Taking monthly interest means that compound interest will happen each month after month 1 and the effect of that compounding increases the 6.31% gross to be 6.5% AER.

With annual interest there is no compounding so the interest rate is quoted at 6.5%.

If you do not withdraw your monthly interest you will receive have received 6.5% at the end of the year. If you do withdraw it each month you will have received 6.31% by the end of the year.

bristolleedsfan

jem16 wrote: »

With annual interest there is no compounding so the interest rate is quoted at 6.5%.


i dont believe there was a choice, my belief is that interest on all tax beater isas is paid monthly, so like u said its paid at 6.31%, if people leave the monthly credited ( note the word credited not calculated) interest invested in the isa each month does in itself earn interest so the AER is 6.5%, if the monthly interest is withdrawn then the rate achieved would be 6.31%

melpomene

Guess what?

I've had a letter today dated 22.5 telling me that my cheque was missing from my application yet they managed to enclose it stapled to the photocopy of my passport made & endorsed by a branch assistant way back on 22 March !

i've just written a letter returning the original cheque & asking that they process it now & backdate the interest! do you think they will?

also are they that incompetent!?!

Indispensable_Hobbes

melpomene wrote: »

Guess what?

I've had a letter today dated 22.5 telling me that my cheque was missing from my application yet they managed to enclose it stapled to the photocopy of my passport made & endorsed by a branch assistant way back on 22 March !

i've just written a letter returning the original cheque & asking that they process it now & backdate the interest! do you think they will?

also are they that incompetent!?!

obviously.

lol that made me giggle (thats not going to help your cause (sorry))

jonnyb

Tried and failed to put money into my new ISA yesterday, after getting a bonus from work.

Because I can see the ISA on my online banking, I thought a simple transfer between accounts would work, but NO !!.

So I tried to do it as a bill payment, but it says I cannot pay a bill to one of my own accounts.

So, please advise me how I can get money into this account.

Thanks in advance.

Woodyrocks

Providing you know the account number and sort code, just pop along to a branch and fill in a deposit slip. I have had no problems with this route. Just don't mention the word ISA¬

BillytheFish_2

I'm very new to the world of ISAs (I opened my first one in April -the Barclays Tax Beater-) so am slightly confused as to how they work.

I have my ISA from last year. I have just looked at the barclays website and it looks like they are withdrawing the ISA at the end of this month.

Should I:

a) Apply for the ISA at with the minimum amount (£1 ?) so that I can put more money in later if b) turns out not to offer anything as good as the Tax-Beater?

b) Wait to see whether anything better comes out after the interest rate rises start to affect the ISA market (as per Martin's ISA article)?


If I go for option a), will I need to fill in another application form for Barlcays or can I simply walk into a branch with a cheque and my account details and make a deposit?

-> If a need to fill in another form, does anyone have a copy or know where I can get one?


Sorry for all the questions...

jem16

BillytheFish wrote: »

I'm very new to the world of ISAs (I opened my first one in April -the Barclays Tax Beater-) so am slightly confused as to how they work.

When exactly in April was it opened? Was it 5th April or before, therefore last year's (06/07) ISA?

a) Apply for the ISA at with the minimum amount (£1 ?) so that I can put more money in later if b) turns out not to offer anything as good as the Tax-Beater?

If you already have an 06/07 Barclays ISA you do not need to open another one with them for this year. You just add to it for this year.

Just remember that if you do open a new ISA or fund an ISA(add to last year's) this year you cannot open another ISA with another provider even if you only put £1 in as you suggest.