Barclays drop isa rate

joeblack9

Barclays sent me a letter informing me that they are dropping the isa rate in september ,the reason to be more competitive .
I complained and said i would remove all my savings to another bank around 70000 pounds .
As a customer of 10 years they were not bothered .
I can move the money from my isa to another provider but then will not be able to put any more money in this year.
I feel i have to except this its like being held to ransom its a joke.

Aretnap

Unless you had a fixed rate ISAS your interest rate was, erm, variable. That means the bank are within their rights to increase or decrease it. In return, you can take it to another bank any time you like.

I'm willing to be corrected but I'm failure that once you've transferred this year's ISA subscriptions to a new ISA you can continue to add money to that ISA, up to the annual limit. The key thing is that allow this year's subscriptions must remain in one place (or two places if you also have a stocks and shares ISA).

Are you aware that a substantial chunk of your £70000 would probably earn better interest being spread around between several current accounts rather than sitting in a cash ISA?

FatherAbraham

joeblack9 wrote: »

I can move the money from my isa to another provider but then will not be able to put any more money in this year.

That's untrue -- moving the current year's active ISA to another provider does not block you from making further contribs.

Warmest regards,
FA

eskbanker

joeblack9 wrote: »

Barclays sent me a letter informing me that they are dropping the isa rate in september ,the reason to be more competitive .
I complained and said i would remove all my savings to another bank around 70000 pounds .
As a customer of 10 years they were not bothered .
I can move the money from my isa to another provider but then will not be able to put any more money in this year.
I feel i have to except this its like being held to ransom its a joke.

You're not being held to ransom - arguably it's more like you were holding them to ransom with your "I'm going elsewhere unless you cut me a deal" stance!

Obviously you're understandably unhappy about rate cuts (as we all are when it happens) but there's no need to feel any loyalty to them (or to treat it as a complaint issue to be honest), just vote with your feet and put your money somewhere where it'll work better for you (as above cash ISAs are unlikely to be the optimum place for all your money anyway).

savings_my_hobby

forget the Isa's - use high interest current accounts, even after tax you will gain more interest.

colsten

WOW, £70K in a bank that has been one of the worst interest payers in the industry for years.

You should thank them for shaking you up and making you think of moving your money to better places.

[Deleted User]

High interest currant accounts have been mention but don't they all expect you to put in so much each month?

colsten

shrimper1 wrote: »

High interest currant accounts have been mention but don't they all expect you to put in so much each month?

Yes they do. But that is not an issue, as you can take it out again. Or you could even take it out first, and then put it back in again.

Aretnap

shrimper1 wrote: »

High interest currant accounts have been mention but don't they all expect you to put in so much each month?

Standing order to pay £1000 (or whatever) from account A to account B on the first of each month.

Standoing order for £1000 from account B to account C on the first of each month.

Standing order for £1000 from account C to account A on the first of each month.

Sorted.

joerugby

That's a very short term answer if I may say so. Giving up £70k tax shelter requires careful long term consideration

For example, there could be a lot of value in the future in being able to shelter £70k worth of fund investments from the new dividend tax and from CGT

As they say, once it's gone, it's gone

Archi_Bald

If the money is for long term investment, an S&S ISA or a SIPP, or both, would possibly make more sense than a cash ISA.

If the money is needed in the next 5 or so years, it definitely will do better, i.e. earn more interest, outside a cash ISA.