Barclays makes changes to Isa rates from last two years

By THIS IS MONEY
Created: 03:51 EST, 1 June 2011

Barclays has cut the rate it pays to new savers on its Golden Isa 3. It now pays 2.22% tax-free to those opening an account.

No deal: Savers who didn't snap up the Golden Isa 3 at 3.25% have missed out

As This is Money reported mid-May, the cut has taken it out of our popular five favourite Isas for 2011 list.

Existing savers who opened an account since its launch in March will continue to earn 3.25%, including a bonus paid for the first 12 months you are in the account.

Each year, Barclays launches a new cash Isa to appeal to savers wanting to use their cash Isa allowance for that year. You cannot move your existing cash Isas into this account.

Its older versions of Golden Isa, launched two years ago, pay 2.22%, while Golden Isa 2, launched in March 2010, pays 2.08%.

Its Tax Beater Isa, introduced in 2007, pays just 0.56% while in Tax Haven, launched in 2008, you earn 0.83%.

Barclays also has a Cash Isa which pays a paltry 0.1%.

Savers who took out Halifax Isa Direct Reward at 2.6% a year ago are set to see their rate drop dramatically.

The bank pays a premium rate on this account for 12 months after which you earn its Isa Saver Direct rate, currently 0.5%.

New savers who open an Isa Direct Reward account now earn a higher 3%.

With Santander, new savers earn 3.3% in Flexible Isa 3. Those in previous issues of the account earn 2.7% as long as they have at least £8,500 in the account, but only 0.5% on smaller amounts.