Barclays 1 year flexible fixed rate ISA

howryoo

If I've understood this product correctly, I can subscribe (ie. pay in new funds for 2022-23, irrespective of multiple ISAs held elsewhere up to & including 2021-22) to this during the application process to open the account.

Then I could choose to transfer-in external ISAs within 30 days of account opening? If so, this would allow time to see how other providers respond with their offerings?

Usually, for a fixed term product, I'd have expected the transfer-in request to be part of the account opening process, hence my asking.  However, I do note it states transfer-ins are permitted for a limited period - ie. 30 days.

Also, come 6th April 2023, it appears you can deposit a further £20,000 into this account?

Just to want to check I'm reading it correctly.

Tom_Hendo

Correct on all points above..it seems too good but that's the deal. Similarly if you open the 2 year you can add a further £20k on april24 should you wish, for a total deposited £60k to that single ISA plus transfers

peter021072

One quirk about this is that you may have to apply in branch unless you are already a customer, because on application they insist you open up an online account and to do that they want your Barclay's account details.  Please let me know if there's a workaround or if they've changed it.

Tom_Hendo

But a current account takes very little time to open via their app if that makes things easier. I never had to visit a branch in my journey with them.

howryoo

Tom_Hendo said:

Correct on all points above..it seems too good but that's the deal. Similarly if you open the 2 year you can add a further £20k on april24 should you wish, for a total deposited £60k to that single ISA plus transfers

Thanks for highlighting the two year option - didn't think that far ahead, but then again, I don't really fix for longer than a year.  If they offered 4.50%, I may have looked into it.

I suppose I could open another ISA account with them (2 year option) and use that to transfer in existing ISAs, then that opens up the potential to fund in April 2024?

Anyone with thoughts?

Tom_Hendo

I though exactly the same, only went 1 year.

I don't have an ISA to transfer in so don't need to worry about that, but with how much the mortgage market has slowed, still reducing after base rate rise, am assuming the savings accounts are nearly capped maybe only .25 or .5 rises maximum. But getting my account running now rather than in a month or two will hopefully offset any rises over that period.

Then as backup, if by April there is a fantastic new product, I can open that with next year's allowance. Finding the savings to put in it is another problem but hey ho 

pecunianonolet

Would it be better to go annual or monthly interest payment for this one? My thinking is that if you can fill up the full 20k it's better to go annual, if you can't fill up completly you are better off monthly and pay it back in as they don't seems to add automatically.

eskbanker

pecunianonolet said:

Would it be better to go annual or monthly interest payment for this one? My thinking is that if you can fill up the full 20k it's better to go annual, if you can't fill up completly you are better off monthly and pay it back in as they don't seems to add automatically.

Not sure if it's the issue you're thinking of, but as there isn't a gross interest rate quoted, i.e. the same 4% for monthly or annual interest, the implication is that there's potentially a small compounding benefit to be gained if they really do pay 4% gross, although this would probably be compromised by the need to get the interest paid back in on the same day it's paid out!

Frogletina

howryoo said:

Tom_Hendo said:

Correct on all points above..it seems too good but that's the deal. Similarly if you open the 2 year you can add a further £20k on april24 should you wish, for a total deposited £60k to that single ISA plus transfers

Thanks for highlighting the two year option - didn't think that far ahead, but then again, I don't really fix for longer than a year.  If they offered 4.50%, I may have looked into it.

I suppose I could open another ISA account with them (2 year option) and use that to transfer in existing ISAs, then that opens up the potential to fund in April 2024?

Anyone with thoughts?

I've opened the one year Isa, but I like your thinking. I have got two easy access ISAs open and I'm thinking I might transfer one of them to the two year Isa with Barclays, it only has just over £50 in it. Even opening it with £10 would mean that it would be available to fund in April 2024.

pecunianonolet

eskbanker said:

pecunianonolet said:

Would it be better to go annual or monthly interest payment for this one? My thinking is that if you can fill up the full 20k it's better to go annual, if you can't fill up completly you are better off monthly and pay it back in as they don't seems to add automatically.

Not sure if it's the issue you're thinking of, but as there isn't a gross interest rate quoted, i.e. the same 4% for monthly or annual interest, the implication is that there's potentially a small compounding benefit to be gained if they really do pay 4% gross, although this would probably be compromised by the need to get the interest paid back in on the same day it's paid out!

I was referring to this statement below so was wondering. If I put 20k in it would generate around £65.75 (30 days) in interest a month. So my understanding is that it can't stay in the ISA and has to be transferred out. Once out I can't put it back in if I am in the same tax year as the limit is obviously 20k. That means that I can't compound it within the ISA and my funds in the ISA are staying flat. I could now keep the money in a different acount to compound and put it back in when my new allowance kicks in next year. If I opt for annual I just get a lumpsum at the end of the term and would miss out on any compounding. 

Maybe I overthink this or miss something which concerns the ISA rules alltogether. (Never had an ISA before)

"Monthly interest can't be paid back into this ISA or directly into any other ISA or bond. It can be paid into a Barclays account in your name or held jointly with someone else, or we'll send it to you by cheque."

sparkiemalarkie

Has anyone received any notification from Barclays after opening an ISA ?
I've opened a 1 year account and can't remember if I opted for monthly or annual interest. Is there a way of finding out from your Barclays account?

tia

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