What are the current Barclays Cash ISA rates?

Research shows that 52% of people with a Cash ISA use the same provider they use for their current account, but this isn’t always a good idea! The big high-street banks don’t necessarily offer the most competitive rates. To see how another provider could help you reach your savings goals faster, take a look at our guide to the Best Cash ISAs in the UK.

What are the current Barclays ISA rates?

Barclays currently offers seven Cash ISA saving products, but four of these ISAs are only available to Premier customers and Wealth Management clients. The Cash ISAs available to most customers have interest rates that range between from 4.40% to 1.66% AER.

1. Barclays 1-Year Flexible Cash ISA: 4.40% (fixed) AER tax-free for a 1-year term, after which the account will covert into an instant-access variable-rate Cash ISA.. Anyone aged 18 or over and a UK resident can apply for this account. You can make up to three withdrawals, but each withdrawal must be no more than 10% of your total balance. You have a 30 calendar days period from the date of account opening to transfer in an existing ISA.
2. Barclays 2-Year Flexible Cash ISA: 4.15% (fixed) AER tax-free for a 2-year term, after which the account will covert into an instant-access variable-rate Cash ISA. Anyone aged 18 or over and a UK resident can apply for this account. You can make up to three withdrawals, but each withdrawal must be no more than 10% of your total balance. You have a 30 calendar days period from the date of account opening to transfer in an existing ISA.
3. Barclays Instant Cash ISA: 1.66% (variable) AER tax-free on savings between £1 and £10,000. The rate will fall to 1.21% AER tax-free on savings above £10,000+. Anyone aged 18 or over and a UK resident can apply for this account. You’ll have instant access to your money and you won’t be penalised for withdrawals.

Source: https://www.barclays.co.uk/savings/isas/. Current Barclays Cash ISA rates are accurate as of August 2024.

What is Barclays’ best ISA rate?

Barclays’ current best Cash ISA rate is 4.65% (fixed) AER, but you’ll need to be a Barclays Premier customer or a Wealth Management client to access this top ISA rate. The best Barclays Cash ISA rate available to most customers is 4.40% (fixed) AER, which you can get by opening its 1-year Flexible Cash ISA. This is a fairly competitive rate and it’s fixed for a whole year, but there are some potential downsides. You can only make up to three withdrawals during the fixed period and each withdrawal must also be no more than 10% of your total balance. 

If you’re saving for short-term goals or there’s a chance you’ll need access to your money in an emergency, you may be better suited to an easy-access Cash ISA. Barclays Instant Cash ISA is accessible, but with an interest rate of just 1.66%, which is not as competitive.

Thankfully, you can find more rewarding accounts with a different provider! Take a look at our guide to the best Cash ISAs on the market for more information.

Is Barclays a good ISA provider?

Barclays’ interest rates are competitive, but its best Cash ISA rates are reserved for Barclays Premier customers and Wealth Management clients. Its most competitive accounts also have withdrawal restrictions which make them less attractive to savers needing easy access to their funds. You may be able to find even better rates and from other providers. 

If you’re a first-time buyer and you’re saving a deposit, you’ll reach your savings goals sooner with a Lifetime ISA (LISA). You can save up to £4,000 of your total ISA allowance in a Lifetime ISA each year and benefit from a 25% bonus from the government, up to £1,000. So, if you max out your LISA for 3 years in a row, you’ll have a £15,000 deposit towards your first home - even more if you choose a LISA with a competitive interest rate!

Can I have two ISAs with Barclays?

If you’re over the age of 18, you can open and pay into more than one cash ISA in the same tax year, but only one of them can be with Barclays. If you’ve already paid into a Barclays Cash ISA during the current tax year but you’d like to open another Cash ISA you can do so with another provider. You can either keep both Cash ISAs or transfer your Barclays ISA into the new one. 

Will Barclays increase ISA rates?

Barclays could increase its ISA rates, but it could lower them instead. The interest rates available on their saving products are influenced by the Bank of England’s base rate. If the base rate increases, banks and building societies often increase their mortgage and savings rates too. If the base rate falls, mortgage and savings rates are often reduced. But there is no way of knowing exactly what will happen to interest rates in future. But if you already have a fixed rate Cash ISA with Barclays, your interest rate will stay the same for the remainder of your fixed term, even if Barclays does make changes to its current ISA offering.

Learn more: Cash ISA or Lifetime ISA. Which one should I pick?

How to find the best Cash ISA Rates

With so many providers to choose from, it’s a good idea to compare more than just the interest rate. You’ll also want to compare customer service quality, how easy it is to access your money and whether the provider offers bonuses or rewards. 

Take a look at our guide to the best Cash ISA rates for a handy breakdown of the most competitive accounts. 

At Tembo, for example, our savers can manage their money via our award-winning savings app. You can expect amazing customer service too (We’re rated Excellent on Trustpilot). If that’s not enough, you’ll also have access to saving tips and tricks and be auto-entered into our monthly £1,000 prize draw!

How to transfer my Barclays ISA to another provider

It’s easy to transfer your Barclays ISA to another provider. Simply open a new ISA and ask your new provider to transfer the money for you. Don’t try to complete the switch yourself, as this can impact your savings’ tax-free status and this year’s ISA allowance! 

Let’s imagine you’ve saved £35,000 in a Cash ISA over a number of years and you’d like to transfer your savings. If you try to move the money yourself, this could use up your full £20,000 ISA allowance for this tax year. You’ll also have to wait until the following tax year to move the remaining £15,000 into your new Cash ISA. Until then, you’d need to keep the money in a traditional savings account, where your interest would be taxed.