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Barclays launches new savings and investment range

Wednesday 10th March 2010

By Mike Jones

Barclays has launched four new savings and investment products.

The new range includes a competitive cash ISA paying an initial 3.06% gross/3.10% AER interest variable, a fixed-rate investment ISA that offers either an income or growth option paying 20% or more over five years, and a new instant access account.

The Golden ISA - Issue 2 is the cash ISA option, available to new and existing customers and can be opened instantly, with customers getting automatic confirmation of the funds and account number as soon as they have finished filling out the application.

They can open with a minimum of £1, the 3.06% gross/3.10% AER variable includes a 1.00% fixed-rate gross bonus for 12 months. Transfers in cannot be made from an existing ISA.

The cash option provides customers with flexibility as they can either put the full cash ISA allowance away in one go or save regularly over the course of the tax year. It’s simple and transparent with no additional purchase conditions, or restrictions on additional deposits and withdrawals.

To widen the range of choices available a Fixed Rate Investment ISA product available for customers who are prepared to invest for a fixed five-year term has been added to the range. Customers can choose between income or growth options paying a fixed, tax free, annual rate of return of 4.0% (income option) or 22.25% (4.45% per annum, growth option) over five years. The minimum investment is £3600 and is open to new ISA business. Customers can choose to seek advice around investing through Barclays's Financial Planning Managers via the telephone or branch or opt to purchase online or by telephone if they don’t require advice.

Customers can invest up to £7200 in the 2009/2010 tax year with a maximum of £3600 in the Cash ISA or the entire amount in the Investment ISA, this rises to £10,200 in the 2010/2011 tax year of which £5100 can be saved in a cash ISA. Customers aged 50 or over on 5 April 2010 can invest the higher amount (£10,200) during the 2009/2010 tax year. Funds in the investment ISA need to be committed for five years, as customers who withdraw early may not get back all of their investment.

"With the majority of people not aware of how much they can invest into ISAs, it’s important that with the new tax year only round the corner they don’t miss out on their annual ISA allowance," said Andy Gray, head of savings for Barclays.

"We believe both investment options are really competitive and will help customers maximise their tax free allowances.

"Our cash ISA gives customers a hugely flexible option where they can dip in and out as and when they need to. The Investment ISA complements the range giving a strong rate and accommodating those savers who are in a position to lock away their savings for longer, offering a halfway house between low-risk cash savings and full risk stock-market investing."

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