Barclays Tax Haven ISA: Have you opened one?

nathanhill69

Slightly off at an angle.....

As the Barclays Tax Haven ISA is a variable rate with a 1% bonus for a year then surely the rate will drop as the BOE cut interest rates - which with the current credit crunch seems to be a given that we'll see at least a couple of cuts in the short term and possibly more in the medium term. Therefore it seemed smarter to go for a Fixed Rate mini cash ISA's rather than Barclays variable rate. For example B&B fixed rate at 6.25% for one year, Skipton (issue now closed) 6.26% fixed for a year.

Lokolo

nathanhill69 wrote: »

Slightly off at an angle.....

As the Barclays Tax Haven ISA is a variable rate with a 1% bonus for a year then surely the rate will drop as the BOE cut interest rates - which with the current credit crunch seems to be a given that we'll see at least a couple of cuts in the short term and possibly more in the medium term. Therefore it seemed smarter to go for a Fixed Rate mini cash ISA's rather than Barclays variable rate. For example B&B fixed rate at 6.25% for one year, Skipton (issue now closed) 6.26% fixed for a year.

Yep but who knows whats going to happen in the future! In 3 months time everything could go down hill and inflation sky high so they put IRs back up!

Plus if you don't have the £3600 (like moi) then its easier to put money in a variable rate than fixed.

rev_henry

Lokolo wrote: »

Yep but who knows whats going to happen in the future! In 3 months time everything could go down hill and inflation sky high so they put IRs back up!

Plus if you don't have the £3600 (like moi) then its easier to put money in a variable rate than fixed.

Well if that happened then couldn't you just take your money out of the fixed one and if the IR shoots up again you would get more interest with a higher IR, but with tax deducted in a regular savings account. Or if you haven't used all your isa allowance you could start another isa. Or a combination of both. Did any of that make sense anyone? It just seemed a bit garbled to me.

Lokolo

rev_henry wrote: »

Well if that happened then couldn't you just take your money out of the fixed one and if the IR shoots up again you would get more interest with a higher IR, but with tax deducted in a regular savings account. Or if you haven't used all your isa allowance you could start another isa. Or a combination of both. Did any of that make sense anyone? It just seemed a bit garbled to me.

I don't pay tax as I don't earn over my threshold.

But it takes 4 weeks to transfer so if I did it everytime base rate change I wouldn't have my money in my account for long! I am only planning on keeping the Barclays one until I have filled it up. I then am going to transfer it. But I am putting student loan in it so most probably won't fill it up until January.

danesol

Hi

My wife and I applied 20th March via Barclays website - 20th March 2008 for financial year 08/09 and its been a total nightmare and isnt over yet !

Quick summary of the issues we have had;
1. Barclays website didnt stop me using a business current account for the £1 setup which was needed to open each a/c. I know that was really my fault, but the website didnt stop me whatsoever in doing this -It took the a/c no and sortcode with no issue. We later find this to be an issue as its against Inland Revenue t&c's on ISAs.
2. However, we both received a letter confirming that the opening process had started. Letter dated 23rd March
3. As we had just returned from holiday hoping both accounts would be up and running - 7th April - I called their helpline as my wife's letter stated that she was a crown employee which wasnt the case. Apparently this was a known issue and was told not to worry about this ! However there was an issue with both applications anyway.
4. Called their ISA team again 8thApril was told there was a huge backlog and they were still processing for the preceding financial year 07/08!
5. Their ISA helpline stated that the accounts were not opened as the £1 deposit was taken from Business a/c and didnt know the status of these accounts and advised me to contact their savings dept. , They advised the best way around this mixup was to setup a jnt savings account to put our funds in to replace the £1's and then the monies could be transfered from there to the ISA's when the admin teams were ready to setup the accounts. Notes were made within their system to advise the admin' teams what to do and where to get the money from !
6. After many many calls later at around 40mins each on average - finally got mine setup 28April but it must of cost me between 5&10pounds to sortout so far. Letter arrived today confirming a/c details 30th. Apparently the admin team which setup the a/cs have now been told to review the notepad entries on each application/account so that what happenened to me (and others) doesnt happen again. Complaint raised with Barclays accordingly.
7. Barclays even though they have taken the money from the business account say they cant refund the £1 even though IR say this cant happen as money cant be traced to the individual which has to happen - only knowing that this money came from a Ltd co bank a/c. Barclays also confirmed that the lost interest ( 1 mth ) couldnt be placed in the ISA directly so have worked out the interest and have paid this into the jnt saving a/c, on which I said I will be out surely at the end of the year due to toting up on the compounded interest? Anyway they did state from the very outset that because we had applied well in good time - that all interest would be backdated to the 5/6th April so at least they are honoring this.
8. Wife still waiting - got to wait to see if they will make the same error with hers. Still not open as of 30th April.
9. ......Still waiting to hear from Barclays over the complaint
10. If you havent got a Barclays personal current a/c like me - its an absolute nightmare to administrate as they wont allow me to add an ISA on my current business online login, but stangely enough allowed me to add the joint saving account - work that 1 out ??!!
11. However I have just discovered that I can manipulate the ISA a/c via telephone banking which I suppose is better than no online access at all !

My advice is keep calm if you are still waiting, but just dont bother if you havent already started the process with opening a Barclays Tax Haven ISA - go elsewhere !

Andy_Bu

I opened my ISA with Barclays on the 28/03/08 after hearing Martin rave about it on It Pays to Watch. I was told in my local branch to have the funds readily available for the 28th when i initially booked my appointment even though i informed them it was for this tax year and not last. The transfer of my £3600.00 from a high interest account was completed to my bank account on the 27/03/08 and has sinced earned a miserable 0.1% interest ever since. My account was finally opened today 30/04/08, well the money has left my bank account anyway, i have yet to receive my welcome back. I have been in the branch twice asking what the hold up was and been fobbed off twice. My question is what do we have to day to get the interest back dated for as long as possible? This forum has been a good find as this is the only information i have been able to get full stop.:mad:

nathanhill69

Lokolo wrote: »

Yep but who knows whats going to happen in the future! In 3 months time everything could go down hill and inflation sky high so they put IRs back up!

I think the interest rates are definitely going down over the next twelve months, the BOE won't reduce them and then bring them back up that quickly as it takes months for changes in the BOE's interest rates changes to have any meaningful effect - I'm kind of speculating we'll possibly be at 4.5% by the end of year but as you say, who knows.

Lokolo wrote: »

Plus if you don't have the £3600 (like moi) then its easier to put money in a variable rate than fixed.

Fair point, and really at the end of the day it's only the difference of a few quid for the majority of ISA savers.

rev_henry

Lokolo wrote: »

I don't pay tax as I don't earn over my threshold.

But it takes 4 weeks to transfer so if I did it everytime base rate change I wouldn't have my money in my account for long! I am only planning on keeping the Barclays one until I have filled it up. I then am going to transfer it. But I am putting student loan in it so most probably won't fill it up until January.

Oh i see. I guess. But then are you not better off putting your money in the kaupthing regular savings account at 6.5%, then filling out an r85 tax exemption form, so you get the full 6.5%?

pjbailey93

opened with cheque in bristol branch 4th april for 2008/9 tax year,cheque has still not been presented to my bank,when i phoned was told isa would be earning full years interest from 19th.am i on a winner as my dosh is earning interest in both places?

Lokolo

rev_henry wrote: »

Oh i see. I guess. But then are you not better off putting your money in the kaupthing regular savings account at 6.5%, then filling out an r85 tax exemption form, so you get the full 6.5%?

I am filling my ISAs for the longterm, I h ave a secondary savings account with R85 small amounts. But in 2009/2010 tax year I will be working as a year in industry. And I am actually planning on keeping the ISAs until I am 25 (now 19) for a decent house deposit.