What is a barclays cash ISA?

Does anyone have a barclays young person account?
I'm confused as to how the cash ISA works...do you just apply for it?
What are the advantages/disadvantages of it?

Thanks!

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Reply 1

senz72

Original post by vianli

Does anyone have a barclays young person account?
I'm confused as to how the cash ISA works...do you just apply for it?
What are the advantages/disadvantages of it?

Thanks!

You don't get taxed on interest but there is usually a set limit on how much you can put into it every tax year. :smile:

Posted from TSR Mobile

Reply 2

tp13002

as mentioned above theyre tax free and thats their only real benefit imo, other than that theyre useless gizmos that give a horrific return and are an irritant to set up.

Reply 3

Reue

Original post by senz72

You don't get taxed on interest but there is usually a set limit on how much you can put into it every tax year. :smile:

Posted from TSR Mobile

There is always a limit on the amount you can put in :smile:

For the current tax year, it is £5,760 in a cash ISA.

Reply 4

Reue

Original post by tp13002

as mentioned above theyre tax free and thats their only real benefit imo, other than that theyre useless gizmos that give a horrific return and are an irritant to set up.

Total rubbish. While they may not be of great benefit to students and those on low income, anyone paying a decent rate of income tax will certainly value the tax benefits on an ISA.

The rates of return are on par with current savings accounts, therefore giving ISAs a clear advantage as you retain the 20/40/50% tax.

Easy to set up, easy to transfer, easy to close. Prehaps if youre finding any of that an irritant, modern day banking isnt for you. Best to stick it under the matress :wink:

Reply 5

hslakaal

Never quite got the point of an ISA unless you are employed.

If you're a student, take the R85 form and a letter from college/uni and your acc will be tax free anyway (unless you are a millionaire and interest alone gives you more than almost 7k a year :redface:

)

Reply 6

Reue

Original post by hslakaal

Never quite got the point of an ISA unless you are employed.

The point would be if you are intending to continue saving with that money when you are employed.

Money you put into an ISA now will remain tax free.

Reply 7

Michael3C

Some advise: save your money.

ISA's are tax free savings accounts. You have to leave your money in there for a year (or sometimes 5 years for higher interest rates) but you can take it out whenever you want / need (you just don't collect the interest).

Interest rates are low right now though sadly. But still, if you are keeping money in your current account, you may as well put it in an ISA. Keep an eye out in April with the new fiscal year for new deals... or create one now and another in April if you want to max out the accounts as you can only put so much in at a time (annum).

Reply 8

hslakaal

Original post by Reue

The point would be if you are intending to continue saving with that money when you are employed.

Money you put into an ISA now will remain tax free.

True.

But you'd be stuck with one bank though. I suppose I've got a different outlook since my credit score isn't exactly going to improve because I've stuck with one bank, nor is my course short, so I'd rather take a flexible option to move money around for better interest rates when my bonds run out.

Reply 9

Reue

Original post by hslakaal

No you wouldnt be. You can transfer your ISA between banks.

Reply 10

hslakaal

Original post by Reue

No you wouldnt be. You can transfer your ISA between banks.

I thought the balance gets reset? Or that's at least what I was told by Lloyds...

Edit:

huh. it can. Might give them a ring to ask.

(edited 10 years ago)

Reply 11

Reue

Original post by hslakaal

I thought the balance gets reset? Or that's at least what I was told by Lloyds...

What, like your money just disappears? :P

You can only open/contribute to one cash ISA per year, however you can merge previous cash ISAs. I swap my ISA every year to whoever has the highest rate, taking all the previously accumulated savings across.

Reply 12

hslakaal

Original post by Reue

Nah. I swear the personal finance advisor lady person said the balance has to be rebuilt. Thanks for the tip! :smile:

Reply 13

Reue

Original post by hslakaal

huh. it can. Might give them a ring to ask.

Dont call your current bank, its got nothing to do with them and they will (obviously) want to try and convince you to stay with them.

When you open a new ISA with a different bank, they will ask if you wish to transfer in old ISAs and give you the forms to do so.

Reply 14

Reue

Original post by hslakaal

Nah. I swear the personal finance advisor lady person said the balance has to be rebuilt. Thanks for the tip! :smile:

Bank 'personal finance advisor' are nothing more than sales people, there to encourage you to use their bank's services. Always do your own research.

Reply 15

Quady

Original post by tp13002

as mentioned above theyre tax free and thats their only real benefit imo, other than that theyre useless gizmos that give a horrific return and are an irritant to set up.

Better than anywhere else if you need to store cash.

Reply 16

hslakaal

Original post by Reue

Bank 'personal finance advisor' are nothing more than sales people, there to encourage you to use their bank's services. Always do your own research.

Yeah. I usually do. Just didn't really bother with ISAs since that isn't my main savings acc, tbh, and the interest I'd get from it is puny compared to my other bonds and investments. Had a look at it for the first time in 8 months. Even the low rate of 2.2% seems fairly nicer than what it is now.

Reply 17

Quady

Original post by hslakaal

Nah. I swear the personal finance advisor lady person said the balance has to be rebuilt. Thanks for the tip! :smile:

Nope

Mine has gone from Nationwide to Lloyds to Halifax to Barclays over the last decade...

I might stay with Barclays from April if they give a semi decent rate, moving about for 0.2-0.3% is a bit pointless when I quite like the Barclays mobile app.

Reply 18

Quady

Original post by hslakaal

risk/reward and all that

Until 12 months ago I had half my net worth in bottles of whisky, which has done me quite nicely over the last three years, doesn't mean it would have been right for everybody.