In this brief guide, we are going to be discussing the Barclays ISA.

In this post, we are going to introduce you to the world of the Barclays ISAs, their best use case and all you need to know about the specific ISAs.e.g which one can help you get on the property ladder or help you save for retirement.

What is Barclays ISA?

The  Barclays ISA(Individual savings account) is a tax-effective way to save. ISAs allow you to pay no tax or the minimum tax on the interest you make on your savings.

To be eligible for an ISA you will usually have to be:

  • You must be at least 16 years old
  • You must be a UK resident
  • And you must have not subscribed to another UK ISA in the same category in the same tax year

So, you are probably wondering what does “subscribing to an ISA” mean. Subscribing to an ISA means paying into and opening an ISA. You are allowed to subscribe to one of each type of ISA every tax year and you must not exceed your ISA allowance each tax year.

How Many ISAs Can I have?💶🙌🏻

The current tax rules allow you to have or open one of each type of ISA every year but you can only put the maximum tax year ISA allowance in all of these ISAs. This means your combined savings in all your ISA accounts must not exceed your current tax year ISA allowance for the current year. The tax year ISA allowance is currently £20,000.

Can I open a cash ISA AND A LISA in the same year?

Yes, you can open a cash ISA and a LISA in the same year. You can also contribute to a cash ISA and LISA in the same year as long as you don’t go over your personal ISA allowance. You can out whatever you have left in other ISA accounts in the same tax year.

How many Barclays ISAs can you open in one year?🔔❄

You can have multiple Barclays ISAs but not more than one of the same( e.g you can’t have two Barclays cash ISAs)   and your total Tax year ISA allowance must not be exceeded in your combined ISA contributions. This means ISAs you hold with Barclays and ISAs you hold with other providers. Each ISA may also have its maximum contribution limit as well. So check the terms.

What to do if you open more than one type of Barclays ISA?😮ℹ

Although it is very unlikely, if you mistakenly open more than one lifetime or stocks & shares ISA in a single tax year, you should notify your Barclays ISA manager at the earliest opportunity. In some cases, the ISA may be allowed to remain open, once you have consulted with HM Revenue and Customs.

The rules for stocks and shares ISAs are the same as with cash ISAs. You can only pay into one each tax year but can open a new ISA with a different platform each year if you wish to. This means you may be able to further diversify by having one type of Barclays ISA and opening the same type of ISA with a different provider in the next tax year. Contribution rules will still apply.

If you have multiple stocks and shares Isas open, you are only allowed to pay into one of them in each tax year. So, if you only wanted to invest a portion of your Isa allowance via the second Isa provider, this could be difficult as it will mean you are not able to add any new money to the original Isa in the same tax year.

The only other option to consider is transferring your existing portfolio to the other provider, although this might incur some costs.

Barclays ISA

How do ISA transfers work?🌟✈

ISAs are tax-free saving wrappers and moving them to get a better deal is common. If you move your ISA in the wrong way you could just end up losing your tax-free status and costing you interest made from your ISA. If you want to move your ISA to a Barclays ISA you should contact the Barclays ISA manager.

Why should you transfer your ISA?🌈ℹ

You could transfer your ISA for a variety of reasons such as getting a better rate or because of reasons such as the cost of your current ISA manager or their performance.

You might also be transferring all your ISAs to a new manager to have all your savings in one place or rather move all your savings to different places in a scenario where your combined savings are over the financial services compensation scheme limit of £85,000 per account.

There are a variety of ISA providers out there and you can view their various offerings, including the way they invest, their past returns etc all online so you have an idea of which provider you want to move your money to.

To transfer an ISA you simply open a new ISA account(in this case a Barclays ISA ) then fill an ISA transfer form and send to your old ISA manager. It’s that simple. Once the transfer is done you will get a closure statement showing exactly how much you have transferred.

Be sure to be on the lookout for any charges or transfer out fees imposed by your current ISA manager.

Barclays ISA

How long does your ISA transfer take?👀

This depends on what ISAs you are transferring. If you are transferring a cash ISA then this should take 15 days. If you are transferring a stock and shares ISA then this will usually take 30 days.

If your ISA transfer takes too long you can report it to the Financial ombudsman.

Which ISAs can you transfer?❄⌛

You can transfer any ISA although there might be some penalty for ISAs which are fixed-term or notice ISAs. Some ISA providers do not accept ISA transfers.

If you have a notice ISA, it is probably best to give notice to your current ISA provider to avoid any charges.

If you choose to proceed without giving notice then you should compare how much interest the new ISA will earn you and the cost of the penalty. If you still make more money by transferring your ISA then, by all means, transfer your ISA if you wish.

The Barclays ISA is covered by the financial services compensation scheme. This means you are covered by up to £85,000 per account in case anything goes wrong with your Barclays ISA.

The majority of Barclays ISA products are cash ISAs

Barclays Cash ISAs

The Barclays Cash ISAs are just like saving accounts which pay interest.The interest they pay is tax-free and outside of your personal allowance. Cash ISAs will usually pay a fixed rate of interest or a variable rate. 

The personal savings allowance which gives you £1000 tax-free depending on your tax band. This means basic-rate (20%) taxpayers will be able to earn £1,000 interest with no tax while higher-rate (40%) taxpayers – will be able to earn £500 interest with no tax. Additional rate (45%) taxpayers don’t get a tax-free allowance.

To open a Barclays cash ISA you will have to be:

Over 18 years old

A Uk resident for tax purposes

Be a crown employee serving overseas

Or be married to or in a civil partnership with a crown employee

A Barclays Cash ISA can be easily opened online, in app or via post. The maximum you can put in them is your personal tax allowance which currently stands at £20,000.

You can also transfer funds from an old ISA account into your Barclays ISA account. 

To open the Barclays cash ISA account you will need a minimum of £1 and you can then go on to contribute up to your maximum ISA allowance of £20,000 taking into consideration any other ISA contributions you may have made that tax year.

You can manage your Barclays cash ISA account online by phone or via the Barclays app.

You can make as many withdrawals from your Barclays cash ISA account but you can only put back the amount left in regards to your maximum annual contribution.

You can cancel this account within 14 day of opening it.

Cash ISAs are usually considered a safe investment vehicle. They are covered by the financial services compensation scheme up to £85,000 per account.

Types of Barclays ISA

Barclays Instant Cash ISA

Barclays Help to Buy: ISA

Barclays 1-Year Flexible Cash ISA

Barclays Premier 1-Year Flexible Cash ISA

Barlcays also offer an Investment ISA but this is beyond the scope of this guide.

Barclays Instant Cash ISA

The Barclays Instant cash ISA is a type of Barclays ISA which has these rates effective until the 8th of October 2019- 0.60% (£1 to £29,999),0.65% (£30,000 to £99,999) and 0.75% (£100,000+).

From the 9th of October 2019, these rates will be effective- 0.40% (£1 to £29,999), 0.45% (£30,000 to £99,999) and 0.55% (£100,000+).

Because the interest rates charged on this account are variable, Barclays can change them at any time. You will get a notice if Barclays decides to change the rates and the rate change arent in your best interest.

The Barclays instant cash ISA has a minimum opening balance of £1 and provides instant access to your money at all times. If the Barclays instant cash ISA is funded via an ISA transfer then it has a minimum opening balance of £0

You can open an account online, in branch or over the phone. 

You can manage your account in branch, or using Online Banking, Barclays Mobile Banking or Telephone Banking – provided you’re registered for these.

To be eligible for the Barclays instant cash ISA, you will need:

Be aged 16 or above

Be resident in the UK for tax purposes

Open this ISA for yourself

You can’t be subscribed to another cash ISA in the same tax year or have no ISA allowance left for the current tax year.

Money withdrawn from your Instant Cash ISA – Issue 1 and put back into the account within the same tax year doesn’t count towards your annual ISA allowance

Transfers-in and transfers-out from and to other ISAs are allowed  

You can offset your savings account against your Barclays mortgage – but if you do, you will not earn any interest on your savings

Barclays may stop offering the Instant cash ISA at any point.

Barclays Help to Buy: ISA

The Barclays Help to buy ISA is a type of Barclays ISA which is only available to first-time buyers.

The interest rate on the Barclays help to buy ISA is 2.58% AER/ 2.55% variable 

The interest on the Barclays help to buy ISA is calculated daily and paid into the account on the 1st day of each month.

You can open this account online or in branch and give any instructions for the account online, by phone or by post.

What is the Barclays Help to Buy ISA?

The Barclays help to buy ISA is a tax-free wrapper where you can save up to £200 a month(max) and an additional maximum of £1200 a month in your first month. The Barclays Help to Buy ISA comes with a maximum £3000 tax-free Government bonus. If you use the money in your ISA to buy a home the government adds 25% of whatever is in your ISA to your mortgage deposit as a bonus with two exceptions.

  • You need at least £1600 saved to get the bonus
  • The maximum bonus you can get is £3000( so the maximum amount the government will pay you a bonus on is £12,000) although you can save more than this amount on the Barclays help to buy ISA.

Quick facts about the Barclays Help to Buy ISA:

  • To qualify for the help to buy ISA you need to be a UK resident and over the age of 16. The deadline for applying for a Help to Buy ISA is December 2019 and you must use it for a mortgage deposit by December 2030 if not you will not be eligible for a bonus. You can keep saving into your account until 30 November 2029.
  • You can only open the Help to Buy ISA per person and not as a couple etc The maximum property price you can purchase with the Help to Buy ISA is £450,000 in London and £250,000 anywhere outside London.
  • You can only open one Help to Buy ISA although you can transfer it to a different provider at any time.
  • Your maximum personal ISA allowance per year is £20,000
  • Your solicitor applies for you to get the Bonus for your mortgage deposit
  • You can withdraw your money at any time but of course, the withdrawn amount will not count towards your bonus.
  • The bonus you are paid is calculated on the closing balance of your account and will be stated on your help to buy closing letter.
  • Any funds which you withdraw cannot be put back into the account. You can only pay your maximum monthly contribution of £200 into the account.
  • If the purchase of your property falls through you should get a failure notice which can be sent back to Barclays so they can repatriate your funds into a new Barclays Help to Buy ISA

You can open the Barclays help to buy ISA here.

Barclays 1-Year Flexible Cash ISA

The Barclays 1-Year Flexible Cash ISA is a type of Barclays ISA which offers a fixed-rate term of 1 year at an interest rate of 0.75% (£1 to £1 million).

You can choose to have your interest paid monthly or at the end of the term. 

End of term interest is compounded annually and added to the funds deposited in your ISA when it matures.

Monthly interest cannot 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 it will be sent to you by cheque.

You can open an account with a minimum balance of £1 and a maximum balance of £1,000,000.

If the Barclays 1-Year Flexible Cash ISA is funded via an ISA transfer then it has a minimum opening balance of £0

You can open an account online, in branch or over the phone. 

You can manage your account in branch, or using Online Banking, Barclays Mobile Banking or Telephone Banking – provided you’re registered for these.

You can deposit up to the annual ISA contribution limit each tax yeat, taking into consideration any other ISA you may have contributed to in the same tax year.

To apply for the Barclays 1-Year Flexible Cash ISA – Issue 1, you must

Be aged 16 or above

Be resident in the UK for tax purposes

Open this ISA for yourself

You can’t be subscribed to another cash ISA in the same tax year or have no ISA allowance left for the current tax year.

This account cannot be offset against a Barclays mortgage.

In regards to withdrawals, Barclays states on its website “ Yes, you can make 3 withdrawals during the term of the 1-Year Flexible Cash ISA – Issue 23. The maximum value per withdrawal on this cash ISA is 10% of your balance at the time the withdrawal is made.

If you need to, you may close the account or transfer-out the whole balance before the maturity date. This will result in a charge equivalent to 90 days’ tax-free interest based on the current balance at the time. If there’s insufficient interest (or where you have chosen the monthly interest payment frequency option) to cover the charge, we’ll take it from your account, so you may get back less than you deposited. The charge does not apply if your account is closed during the cancellation period, or due to death or bankruptcy.  “

Barclays Premier 1-Year Flexible Cash ISA

The Barclays Premier 1-Year Flexible Cash ISA is a type of Barclays ISA which is exclusively for Barclays premier customers and offers a fixed rate of 0.85% (£1 to £1 million).

You can choose to have your interest paid monthly or at the end of the term. 

End of term interest is compounded annually and added to the funds deposited in your ISA when it matures.

Monthly interest cannot 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 it will be sent to you by cheque.

You can open an account with a minimum balance of £1 and a maximum balance of £1,000,000.

If the Barclays premier 1-Year Flexible Cash ISA is funded via an ISA transfer then it has a minimum opening balance of £0

You can open an account online, in branch or over the phone. 

You can manage your account in branch, or using Online Banking, Barclays Mobile Banking or Telephone Banking – provided you’re registered for these.

You can deposit up to the annual ISA contribution limit each tax year, taking into consideration any other ISA you may have contributed to in the same tax year.

To apply for the Barclays premier 1-Year Flexible Cash ISA – Issue 1, you must

Be aged 16 or above

Be resident in the UK for tax purposes

Open this ISA for yourself

An annual gross income paid into a current account with us of £75,000 or more

OR

£100,000 or more saved or invested with us

You can’t be subscribed to another cash ISA in the same tax year or have no ISA allowance left for the current tax year.

This account cannot be offset against a barclays mortgage.

In regards to withdrawals, Barclays states on its website “ Yes, you can make 3 withdrawals during the term of the premier 1-Year Flexible Cash ISA – Issue 23. The maximum value per withdrawal on this cash ISA is 10% of your balance at the time the withdrawal is made.

If you need to, you may close the account or transfer-out the whole balance before the maturity date. This will result in a charge equivalent to 90 days’ tax-free interest based on the current balance at the time. If there’s insufficient interest (or where you have chosen the monthly interest payment frequency option) to cover the charge, we’ll take it from your account, so you may get back less than you deposited. The charge does not apply if your account is closed during the cancellation period, or due to death or bankruptcy.  “

The information provided on this page about the Barclays ISA is accurate at the time of writing. You should check with the Barclays ISA website as some of the information on this page may have changed.

If you have any questions or comments please let us know.

If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.

You can also contact the debt charity “Step Change” if you are in debt and need help.


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