If you’ve got a bit of spare cash sitting to one side and you’re looking to earn some interest, then you have a plethora of options at your disposal. With that being said, if you have virtually no tolerance to risk, then you might be best off putting your savings into a risk-free ISA.
Once such provider that is looking to dominate this space is Barclays – who now offer a full range of ISA accounts for you to choose from. If you’re thinking about opening an ISA account with Barclays, or you want more information about the types of returns on offer, then be sure to read our Barclays ISA Review.
Barclays ISAs: What ISAs are offered?
Barclays offers a good selection of ISA accounts. Scroll through the following accounts to find one that meets your individual needs.
Is a Barclays ISA safe?
As is the case with the vast majority of ISAs in the UK, your Barclays ISA will be protected under the Financial Services Compensation Scheme (FSCS). This means that your savings are protected up to the first £85,000. Take note, this is per institution as opposed to per account, so you should avoid investing more than £85,000 if you want to remain 100% risk-free.
On the other hand, you will not be engaging in a 100% risk-free investment if you opt for the Barclays Stocks and Shares ISA. The reason for this is that your gains are determined exclusively by your chosen investments. For example, if you hold stocks that have gone down in value in comparison to the price you originally paid, then your overall investment will be worth less than what you started with.
How much can I invest into my Barclays ISA per year?
As per the 2019/20 limits imposed by the UK government, you will be able to invest up to £20,000 for the year. You can invest the £20,000 limit in one fell swoop, or in instalments throughout the tax year. As such, if you are opening a Barclays ISA mid-year, then you should attempt to inject the maximum annual allowance before the new tax year starts in April 2020.
It is also important to note that you can spread your ISA investments out across multiple accounts. For example, if you want to place £15,000 into the Barclays Instant Access ISA account for a risk-free return, and place the remaining £5,000 into the Barclays Stocks and Shares ISA – this is perfectly fine.
Just remember, certain ISAs at Barclays Bank do come with limitations. For example, if you opt for the Help to Buy ISA, you will only be able to deposit a maximum of £1,200 when you first open your account (anytime during the first calendar month). Moreover, the same ISA will only permit £200 per month thereon, so make sure that you take this into consideration.
Do I need to have an account with Barclays to open an ISA?
In some cases, yes. For example, if you want to open an Instant Cash ISA, you will need to have a current account. This is because you will have the option of making cash withdrawals on-demand. Moreover, if you're looking to take advantage of the 0.85% AER that comes with the Premier 1-year ISA, you will need to have a Premier current account at the bank.
Is a Barclays Stocks and Shares ISA safe?
Unlike a more conventional Cash ISA, the Stocks and Shares ISA available at Barclays is not 100% risk-free. The overarching reason for this is that your profits and losses will be dependent on your chosen investments. Don't forget, Barclays does not pay you any interest for holding a Stocks and Shares ISA. On the contrary, you are merely benefiting from a favourable tax advantage.
How much can I put into a Barclays ISA?
The limits fall in-line with that of the 2019/20 annual allowance, which stands at £20,000 per year. You are free to split your annual allowance across different ISA accounts, as long as you do not exceed the annual limit. Take note, the annual limit is reviewed by the UK government every year, so it is likely to change in subsequent years.