Barclays ISA.. Can I change?

DanW87

Hi.

I am in need of assistance.

Each year at the start of the ISA year i open up a new ISA with a better rate and transfer my previous ISA into it.

Back in April, I opened an ISA with Barclays as they had one of the better rates and I bank with them. I have now received a letter saying they are going to cut the ISA rate.

Where do I stand with this as I would not have opened with them if I knew the rate would drop and didn't think that they could drop in mid way through the year. Can I transfer over to another provider even though I have already opened a cash ISA this year?

Many thanks.

PeacefulWaters

DanW87 wrote: »

Hi.Each year at the start of the ISA year i open up a new ISA with a better rate and transfer my previous ISA into it.

Good approach. Although you don't have to wait until the start of the tax year to transfer.

Back in April, I opened an ISA with Barclays as they had one of the better rates and I bank with them. I have now received a letter saying they are going to cut the ISA rate.

Barclays are good at this, but they're not alone.

Where do I stand with this as I would not have opened with them if I knew the rate would drop and didn't think that they could drop in mid way through the year.

Most savings accounts, including cash ISAs, are variable interest rates. If you want a fixed rate then you buy a fixed rate product. Otherwise they can vary the interest rate up or down.

Can I transfer over to another provider even though I have already opened a cash ISA this year?

Yes. But you may prefer to investigate high interest current accounts.