If you’re looking for a tax advantageous way to save your money you may be wondering what a Barclays ISA has to offer. Barclay’s has a selection of instant cash and fixed rate term ISAs, it is wise to make sure you are getting the most from your annual allowance however so before you decide, you could check out the comparison table below to compare and contrast a selection of top best buys from different providers:
- Barclays Instant Cash ISA – offers a tiered interest system so you more benefit from a higher rate of interest for putting in a larger sum. You can make deposits and withdrawals at any time should you need to. Access through online, mobile, telephone or in branch.
- Barclays 2 Year Flexible Cash ISA – Offers you a fixed rate of interest for 2 years, while still maintaining the flexibility to make up to 3 free withdrawals of up to 10% of your balance. This account offers a choice of interest of being paid monthly or at the end of the term. You can transfer in existing ISA’s providing your instructions are with Barclays within 30 days of your account being opened.
- Barclays Investment ISA – This is a Stocks & Shares ISA that allows you to choose to invest in different funds, gilts and bonds.
Types of ISA
There are two types of Individual Savings Account; Cash ISAs and Stocks & Shares ISAs, the two of which vary considerably so it is important to understand their differences. You can only one of each type of ISA each tax year and if you choose to open one of each your annual maximum allowance will still be the same so you will need to decide how to break it up between the two accounts:
Cash ISA: Work essentially the same as a standard savings account, the only difference being the interest you earn on these accounts is tax-free up to your maximum annual allowance. There are a wide range of providers with choices of Fixed Rate, Easy Access and Instant access accounts. Generally speaking the less access to your savings, for the term of the account, an ISA offers the better interest return offered. These types of account are capital protected and covered by the FCSC.
Stocks & Shares ISAs: This type of ISA is a type of investment account, which you can use to pay money into gilts, stocks, shares and bonds. As your investments can go down as well as up, you should understand that your capital is at risk and you could get back less than what you originally invested. Any capital gains you make from investments will be tax-free as will be interest made from interest-giving investments like corporate bonds or gilts. You will still however have to pay tax on dividend income.
Junior ISAs: A Junior ISA is a savings options available for younger people, they are available as either Cash or Stocks & Shares options, they can be opened by an investor aged between 16 and 18 or, for children under 16 by someone with parental responsibility. Money cannot be withdrawn from the account until at least the 18th birthday of the account holder.
Transferring an ISA to get a better deal can be a good idea, so it is worth often checking the market to see if better deals are available. While providers have to let you transfer your ISA to a different provider they can impose an interest penalty for doing so. If this is the case before you make the transfer you should work out if when factoring in the penalty you would not earn more interest overall by staying put.