News Column

1.6m Barclays Isa savers face interest rate cut: Personal finance

August 7, 2014

Lisa Bachelor

More than a million savers who hold Isas with Barclays are set to see their returns drop as the bank announced it is moving them all on to a product with a lower interest rate.

From 5 November Barclays will move customers who hold any one of 11 Isa products that are no longer open to business on to its newer Instant Cash Isa, which pays between 1.29% and 1.49% annual interest. The move will see some 1.6 million people moved on to a worse rate. A further 740,000 customers will receive the same or more interest than they currently get.

The worst affected will be those who hold the bank's Freestyle Cash Isa, which pays 2.76%, as those with a balance of less than pounds 15,000 will see their interest more than halve to 1.29%. Other savers that will be worse off include those with the bank's Loyalty Reward Isa, which pays 2.03%.

The bank, which is writing to all affected customers, says it wants to simplify its range. Lisa Bachelor

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Source: Guardian (UK)

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