Huge Demand for Barclays Cash ISAs as the 2010/11 Tax Year ISA Allowance Deadline Approaches

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This March, Barclays has seen one of its busiest ISA seasons ever, with 50 per cent * more people taking advantage of their tax-free allowances by opening the Barclays Golden ISA - Issue 3. With interest rates at a historical low and increasing pressures on finances, it appears that savers are searching for the best rates available to maximise their returns.

This March, Barclays has seen one of its busiest ISA seasons ever, with 50 per cent * more people taking advantage of their tax-free allowances by opening the Barclays Golden ISA - Issue 3. With interest rates at a historical low and increasing pressures on finances, it appears that savers are searching for the best rates available to maximise their returns.

Looking at the demand for ISAs from early March 2011 to 5th April, Barclays predicts that a quarter of applications for this period will hit on the last day - Tuesday 5th April – showing that there will be a surge of savers leaving it until the very last minute before they invest.

Barclays recently launched its highly competitive Golden ISA – Issue 3 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. This rate 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. Barclays also launched the ‘Barclays Rate Promise’, giving a commitment to customers that the interest rate on Golden ISA - Issue 3 will move in line with the Bank of England Bank Rate until 1 March 2012.

Andy Gray, head of savings for Barclays said: “The massive surge in customer applications for our Golden ISA - Issue 3 demonstrates that consumers are becoming more financially savvy and understand the benefits of ISAs as a smarter way to save. They are hunting for rates that will give them long-term value and help them make the most of their money, which is especially important at a time when economic conditions are tough.”

Customers can open Golden ISA - Issue 3 through Barclays branches. In addition, Barclays current account customers using online and telephone banking can apply online at http://www.barclays.co.uk or telephone 08457 555 555. As the end of the tax year fast approaches, Barclays wants to remind customers of the application deadlines for using their 2010/11 tax-free allowance:

  •     Telephony applications will close at 23.00hrs on Tuesday 5th April and will reopen at 02.00hrs on 6th April for 2011/12 applications
  •     Online banking applications will close at 23.00hrs on Tuesday 5th April and will reopen at 07.00hrs on 6th April for 2011/12 applications
  •     Barclays branches across the UK will be operating business as usual hours.

And so, with only one week remaining of the 2010/11 tax year, Barclays is urging consumers to act now and ensure they have paid into an ISA to utilise their maximum tax efficient savings allowance before it’s too late. The maximum savers can invest into an ISA at present is £10,200 of which £5,100 can be saved in a cash ISA. These limits will increase to £10,680 for the new tax year on 6th April 2011, of which £5,340 can be saved in a cash ISA.

Notes to editors:
*Barclays compared the number of customer applications for Golden ISA - Issue 2 (March 8 – April 5 2010) and Golden ISA – Issue 3 (March 2011)

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

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

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.

For more information contact:
Joanne Lewis
Barclays
tel: 020 7116 3030
joanne.lewis(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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