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Barclays launches 3.1% Golden cash ISA

Barclays launches a 3.1% cash ISA, as ISA season swings into action.

Barclays today launched a cash ISA paying 3.1% along with a new investment ISA and an instant-access savings account.

The Golden ISA includes a 1% bonus rate for the first 12 months and allows additions, deposits and withdrawals up to ISA limits.

Transfers from existing ISAs are not allowed, so the maximum that can be saved in the current tax year is £3,600 for the under-50s and £5,100 for the over-50s.

In the coming tax year, the cash ISA allowance for all will stand at £5,100.

Barclays is also launching a five-year fixed-rate investment ISA offering returns of 4.45% per annum.

The bank warns customers who wish to withdraw early from the structured investment product may not get back all their capital.

Andy Gray, head of savings for Barclays, said: “The Investment ISA complements the range giving a strong rate and accommodating those savers who are in a position to lock away their savings for longer, offering a halfway house between low-risk cash savings and full risk stock-market investing.”

Barclays is also launching an instant-access savings account.

Essential Savings offers a rate of 0.6% for deposits under £10,000 and 1.29% for savings between £10,000 and £100,000. The rate includes a 0.5% bonus for the first 12 months.