Barclays Tax-beater Cash Isa - Savings - News - Moneyfacts


Barclays Tax-beater Cash Isa

Barclays Tax-beater Cash Isa

Category: Savings

Updated: 31/10/2008
First Published: 20/03/2007

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Two weeks ago I mentioned that Abbey and Alliance & Leicester had launched new Cash ISA products with headline grabbing interest rates, but with strings attached. To obtain the high savings rate of 8.1%, customers had to open additional accounts or take other products.

I am pleased to report this week that one of the banking giants, Barclays, has thrown down the gauntlet with its tax-beater mini cash ISA, paying 6.5% AER - without any strings attached!

The Barclays tax-beater cash ISA is top of the mini Cash ISA best buy savings table. The 6.5% rate does include a 1% bonus, but it is available for a full 12 months, and with a low minimum opening balance of £1, it's definitely worth a look.

But you had better be quick - the top paying cash ISAs at the beginning of the new tax year aren't always around for long. The best mini cash ISA for last tax year was Alliance & Leicester's Direct ISA, paying 5.20%; however it was withdrawn barely a week into the new tax year!

Make sure you join one third of all UK adults, who are all using ISAs to shield their savings from Gordon Brown, even when the 2007 budget may be his last!

Whilst on the topic of Gordon Brown's budgets, it's almost two years since he introduced the Child Trust Fund. So if you know someone expecting a baby, remind them that this childrens savings account is tax-free and a great way of giving a child a nice little nest egg on their 18th birthday. Child trust funds can also be rolled over into an ISA when they mature, so there's even more reason to take advantage of them.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Savings rates plummet to fresh lows yet again

It’s becoming a recurring theme, and unfortunately, it’s showing no signs of stopping. Savings rates have plummeted to fresh lows once again as the impact of the base rate cut continues – and this month, product availability has followed.

Less than half of savings accounts beat inflation

Official figures show that inflation jumped up during September, with CPI rising to 1%. Not only does this mean that consumers may begin to feel the impact on their wallets, but there are now far fewer savings accounts that will beat inflation.

Number of savings accounts falls to record low

As if the continued drop in savings rates wasn’t bad enough, our latest research reveals another blow to already hard-pressed savers, with the number of accounts available having fallen to a record low.