The FINANCIAL — Barclays launches its new ISA range which includes a competitive Loyalty Reward ISA paying 3.05 per cent AER/ 3.01 per cent tax free per annum, enabling customers to make the most of their tax-free savings allowance.
According to Barclays Bank, to support the ISA launch, Barclays is also increasing the rates on its popular 18 Month Flexible Bond.
The Loyalty Reward ISA is exclusively available to Barclays customers and can be opened instantly, with a minimum of £1. It includes a fixed rate introductory bonus of 1.00 per cent tax free per annum for 12 months, not only giving customers a great rate for the first year but also a competitive rate after the expiry of the introductory bonus in 12 months’ time. It also comes with the added guarantee to track any changes in base rate until 31 March 2014. Transfers cannot be made from an existing ISA into this account.
The new cash ISA provides existing customers with a simple and transparent account with no complicated purchase conditions or charges 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 2012/2013 tax year the ISA allowance will increase to £11,280, of which £5,640 can be saved in a cash ISA. This is compared to £10,680 of which £5,340 can be saved in a cash ISA for the 2011/2012 tax year.
Alongside Loyalty Reward ISA, Barclays is launching ISA Saver Issue 2. This cash ISA is available to all savers, paying 2.75 per cent AER / 2.72 per cent gross per annum, and includes a fixed rate introductory bonus of 1.00 per cent tax free per annum for 12 months.
Barclays has also increased the rates on its 18 month Flexible Bond to give customers a range of savings options in the ongoing low base rate environment. Launched today, the new 18 Month Flexible Bond – Issue 10 will pay a fixed rate of 3.00 per cent AER on balances over £50,000 – the maximum investment is £1,000,000. The bond will pay 2.50 per cent AER on balances below £50,000 – the minimum investment is just £1. The bond allows three withdrawals of up to 10 per cent of the initial deposit without notice or charges.