Barclays ISA

 

 

Barclays ISA is a tax efficient investment option that allows an investor to invest in cash, stocks and shares. Individual Savings Accounts are classified into cash and stocks and shares ISAs. Barclays offers both these types of ISAs.[br]

 

Barclays ISA – Various Options

Barclays offers several types of ISA accounts to meet varied investment requirements.

 

Cash Barclays ISA: Barclays offers a cash ISA called Golden ISA with which one can create and manage the accounts online. The bank offers both variable interest rate and fixed interest rate options with its cash ISAs. One can save up to £3,600 in a cash ISA each tax year. You can enjoy high interest rates with this option. The bank requires only £1 as opening balance. The bank does not allow a transfer from other individual savings accounts with its Golden ISA account. For Golden Barclays ISA, the bank pays variable interest rates annually. The company offers another plan called Barclays Cash ISA for which it pays variable interest rates on a monthly basis.[br]

 

Stocks and Shares Barclays ISAs: The bank offers many plans in its stocks and shares ISAs. Barclays offers a Defined Returns plan that provides high growth potential for more than five years of investment. The bank offers fixed 40% returns at the end of the five years if the FTSE 100 Index at the time of maturity is higher than it was during the starting period. With this option, one will not lose the invested capital even if the stock markets do very badly during the investment period. Although this is a five-year fixed investment, one can sell the plan before maturity. The bank also gives an option to invest more than the ISA limit. However, one needs to pay tax on the returns from the additional investment. This is a good investment plan for long term investors.

 

When choosing the right Barclays ISA, one must consider the payment options, such as monthly or lump sum payments, interest rates and access to cash. Barclays Defined Returns Plan is a great option for investors who do not wish to take on high risks, while still getting high returns.