Barclays Launches New Competitive Savings Range with Bank of England Bank Rate Commitment

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Barclays is today launching two new savings products, including a highly competitive cash ISA paying 3.25 per cent AER/ 3.20 per cent tax free per annum variable to enable customers to make the most of their tax-free savings allowance. 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.

Barclays is today launching two new savings products, including a highly competitive cash ISA paying 3.25 per cent AER/ 3.20 per cent tax free per annum variable to enable customers to make the most of their tax-free savings allowance. 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.

Customers can open these savings accounts through Barclays branches. In addition Barclays current account customers using online and telephone banking can apply online at http://www.barclays.co.uk/savings or telephone 08457 555 555.

Barclays has also improved the rates on its three year savings bond to encourage more customers to save in the current low base rate environment. Launched today, the three year bond offers competitive rates of 3.50 per cent AER on a minimum investment of £500 and 4.00 per cent AER from £50,000 up to £1 million. The bond, available through Barclays branches, via telephone and online, sits alongside the market leading five year bond at 4.75 percent AER (4.25 per cent for investments under £50,000) launched on 18 February.

Notes to Editors:

Barclays Golden ISA Issue 3, phone lines open 7 days a week from 7:00 am to 11:00 pm. The online facility will also be available 24/7. These options are available for existing current account customers.

To qualify for the 2010/2011 tax year the account must be opened by Tuesday April 5, 2011 or from Wednesday April 6, 2011 for the 2011/2012 tax year.

Golden ISA – Issue 3 is available for consumers who have not already paid into a cash ISA in this tax year.

Product features:

Golden ISA – Issue 3

  • Pays a flat rate of interest of 3.25 per cent AER /3.20 per cent tax free per annum
  • Rate includes a fixed rate introductory bonus of 1.00 per cent tax free per annum payable for the first 12 months from the date of account opening.
  • Interest is variable and paid monthly on the first working day of each month
  • Open from a £1
  • Instant access with no penalties for withdrawals
  • Maximum deposit £5,100 for the tax year 2010/2011. £5,340 for the tax year 2011/2012
  • The account can be opened in branch, or online and by telephone for existing Barclays customers. Customers will receive immediate confirmation of their application when opened online. New to bank customers can only open the account in branch.
  • Transfers in from existing cash ISAs are not permitted
  • Balances can be offset against a Woolwich Offset Mortgage
  • Barclays Rate Promise applies until 1st March 2012

Everyday Saver

  • Interest 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
  • Rates include a fixed rate introductory bonus of 0.55 per cent gross per annum payable for the first 12 months from the date of account opening
  • Interest is variable and paid monthly on the first working day of the month
  • Open with just £1
  • Instant access with no penalties or restrictions on withdrawals
  • Optional ATM card to withdraw up to £300 per day from Barclays ATMs – subject to available funds.
  • Customers can manage their account via the branch, or over the phone and online for existing Barclays current account customers
  • Balances can be offset against a Woolwich Offset Mortgage
  • Barclays Rate Promise applies until 1st March 2012

The Barclays Rate Promise:
This is available on the following savings accounts:

  • Golden ISA – Issue 3
  • Everyday Saver
  • Barclays Children’s Savings
  • e-Savings
  • e-Savings Reward

This promise is a commitment to customers that interest rates on these accounts will follow in full the amount of any changes (up or down) in the Bank of England Bank Rate from Monday 7 March 2011 until Thursday 1 March 2012.

Interest rate rises will be passed onto the customer within 30 days of a Bank of England Bank rate announcement. If interest rates go down, we will write to customers and give them 60 days personal notification of their interest rate reduction.

Displaying rates:
For several years Barclays has been providing the interest rate on all customer statements and the website to help customers make an informed choice as to where they wish to save their money. Since November 2009 Barclays has been notifying savings customers of any unfavourable changes to their terms and conditions, including all downward rate changes regardless of account balance or the size of the change. This notification is by personal letter giving two months advance notice of the change. At the same time details of such changes are provided in branch, on the telephone and online.

For more information contact:

Emma Austin
Retail Banking PR Manager
tel: +44 (0)20 7116 6145
mob: +44 (0)7775 541675
emma(dot)austin(at)barclays(dot)com

Barclays is a major global financial services provider engaged in retail banking, credit cards, corporate and investment banking and wealth management with an extensive international presence in Europe, the Americas, Africa and Asia. With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs nearly 147,000 people. Barclays moves, lends, invests and protects money for 48 million customers and clients worldwide.

For further information about Barclays, please visit our website http://www.barclays.com.

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Emma Austin
Barclays
+44 (0)20 7116 6145
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