Barclay's Loyalty Rewards ISA, wise to use now?

MegaLeon

Hi there,
I just started my first job after graduating so I am diving into the wonderful world of saving for the future. I had a look at the lis of best ISAs available, and currently they all over around 2% AER.

I have a Barclays Bank account I used throughout University, and one or two years ago I opened a "Loyalty Reward ISA" wich was a particular offer for Barclays' clients.

I did check, and even if the account is not available to be opened for new customers anymore, the current interests rate is 2.03% AER.

Do you guys think it would be a good idea to use it as my main ISA account to start and store money for my savings? It would spare me the hassle of opening another account in another branch.

Thanks in advance

planteria

sounds ok to me, but check the market and get the very best rate that you can for your ISA.

not really answering your question directly, but as soon as you can start to 'invest' rather than 'save' i think it would be a good idea. therefore, when you are ready, using your ISA allowance for Stocks&Shares or investing in a Pension scheme would be good for the long-term. you need to think about such things carefully, of course.

GreenBitterfly

TBH, I think 2% currently, is probably one of the best out there, and it's better to start saving with it now, and then transfer to a better rate ISA (if there is one), when ISA season starts.

innovate

ISA rates are pants everywhere right now. Assuming you are a basic rate tax payer, you can get a lot better interest in several current accounts. You can still decide to put your money into a cash ISA before the end of the financial year if you want to use some or all of your ISA allowance for the current tax year.

A lot depends on when you expect to need the money - if it is in the next 1-4 years, you might as well forget about ISAs, and other savings accounts, for the time being, and instead just focus on one or more or the interest-paying current accounts.

As a general observation: Barclays rarely ever figure amongst the top ISA, or other interest paying, accounts.

Archi_Bald

innovate wrote: »

.... if it is in the next 1-4 years, you might as well forget about ISAs, and other savings accounts, for the time being, and instead just focus on one or more or the interest-paying current accounts.

Don't forget regular savings accounts.