With expectations that interest rates will start to rise this year, Barclays will also be launching the ‘Barclays Rate Promise'. This applies to a range of its savings accounts, giving a commitment to customers that their interest rate will move in line with the Bank of England Bank Rate until 1 March 2012.
The Golden ISA - Issue 3 is available to new and existing customers and can be opened instantly, with a minimum of £1. The 3.25 per cent AER /3.20 per cent tax free per annum variable includes a fixed rate introductory bonus of 1.00 per cent tax free per annum for 12 months.
This offers customers a great rate for the first year, and continues to offer a competitive rate after the expiry of the introductory bonus in 12 months' time. Transfers in cannot be made from an existing ISA into this account.
The new cash ISA provides customers with a simple and transparent account with no complicated purchase conditions or penalties for withdrawals. Customers will have instant access to their money and the flexibility to invest either the full cash ISA allowance instantly or contribute over the course of the tax year.
For the 2011/2012 tax year the ISA allowance will increase to £10,680, of which £5,340 can be saved in a cash ISA. This is compared to £10,200 of which £5,100 can be saved in a cash ISA for the 2010/2011 tax year.
Andy Gray, Head of Savings at Barclays said:
"Over the last three years we have seen a huge demand for our range of Golden ISAs. We believe the highly competitive rate announced today, combined with the reassurance of our Barclays Rate Promise, will really help savers get the tax free returns that they are entitled to and give them peace of mind that their savings will keep in line with any rate changes.
"We urge consumers who have not already subscribed to an ISA this year or topped up to the full amount to act now, to ensure that they do not miss out on their annual ISA allowance - especially as this increased significantly in April 2010."
"Our cash ISA enables customers to maximise their tax-free savings allowance, making the most of their money at a time when economic conditions are tough. They have the added flexibility of being able to dip in and out as and when they need to. Customers need to be aware of the allowance increases from 6 April 2011 and ensure that they maximise the full benefits of our new Golden ISA - Issue 3."
Alongside Golden ISA - Issue 3, Barclays will be launching a new instant access account called ‘Everyday Saver'. The new account allows savers to manage their money in branch, over the phone and online and offers an optional cash card for withdrawals at Barclays ATMs.
"Rates are variable and range from 0.65 per cent AER/0.65 per cent gross per annum for balances under £10,000 to 1.35 per cent AER /1.34 per cent gross per annum for deposits of £100,000 or more.
"All rates include a fixed rate introductory bonus of 0.55 per cent gross per annum for 12 months. The Everyday Saver account, along with a range of our other savings accounts, has the added reassurance of being covered by the Barclays Rate Promise."
