A quick update on some good fixed rate ISA's

Northern Rock 1 year 5.80%
ING Bank 6 months 6.55%- Then reverts to 5.13% - this 6% AER
Bradford & Bingley1year 5.90%

With less than a month left for UK consumers to make the most of their current tax-free ISA savings allowance, Barclays from Friday 16th March introduces a new cash ISA paying 6.50 per cent AER interest. Customers are able to save from as little as £1 and up to £3,000 in each tax year.

Andrew Jones, Barclays Product Director, said: “This is the best no catches cash ISA rate to hit the high street this year. Interest rates have been going up in recent months but until recently the best AER you could get on a cash ISA was below 6 per cent.

“We believe that this ISA at 6.5 per cent offers the best ISA rate to the greatest number of people on the market – it's available from £1, where many ISA's at this rate require upwards of £500; it's not linked to the opening of another account like some of the recent “so-called” best rate ISA's and you're not tied to direct only servicing as it is available through all our branches as well.”

Savers who already have an ISA in the current tax year will still be able to take advantage of the Tax Beater Cash ISA from 6th April. See table 1 for competitor information.

Features for Barclays ‘Tax Beater Cash ISA':

Interest rate of 6.50 per cent AER/6.31% tax free (variable)

Rate includes an introductory bonus of 1 per cent payable for the first 12 months.

Minimum balance £1, maximum deposit £3,000 per tax year

Instant access

Transfers from existing cash ISA's not allowed.

The account can be opened in branch or applications can be obtained online or by phoning.



At the same time Barclays is launching a further two saving accounts available to all customers through the branch network:

The new ‘instant access' account is Day to Day Savings which allows instant access on savings of £1 or more. The flat interest rate of 4 per cent AER is the highest rate of the main banks for branch based accounts on the high street. Details are:

It pays a flat rate of interest of 4 per cent AER on any investment over £1

Comes with an ATM card

Instant access with no loss of interest for withdrawals

Designed to encourage people to put money aside for their day to day savings needs, it's just one step away from a current account.

Can be operated via branch and for Barclays current account customers via phone or online

See table 2 for competitor information



The new ‘serious savings' account is about longer term savings, and is aimed at those saving for a purpose, wanting a monthly income and needing occasional access to their savings. The account is called ‘Savings Builder'.

Pays a higher rate from 4.50 per cent AER on £10,000 savings up to 5 per cent AER on £250,000.

Lower rates apply for each month where withdrawals are made (see table 3 for competitor information and table 4 for all rates).



All of the new accounts can be operated through Barclays branches or application via telephone or internet banking. The Barclays Tax Beater Cash ISA and other new account details can be found at: www.barclays.co.uk or by telephoning 0845 300 5854 or by visiting a Barclays branch.

Barclays also offers a full range of investment ISA's either online for customers to choose or with advice via Barclays Financial Planning.

By Shahla Walayat
http://www.moneyforums.co.uk

For the Best Cash ISA's Thread for the New 2007-08 Tax Year - Click

http://www.moneyforums.co.uk/moneyforumstopic2423.html

Current best cash isa is -

A&L / Santandar Flexible ISA 3.5% £1 This account offers a guaranteed rate of 3% above the base rate for 1 year. So the account tracks the UK base rate with a 3% bonus for the first year only. An excellent 1 year hedge against future interest rate hikes. No Transfers in.