Barclays is aiming to become the first financial services firm to simplify its products, in line wit...
Barclays is aiming to become the first financial services firm to simplify its products, in line with proposals laid out by Ron Sandler, by changing the terms first on its savings accounts.
"Old fashioned" instant access and notice accounts will no longer be offered to new customers from June but two new accounts are available which offer either a better interest rate if fewer withdrawals are made or tracks to within 0.75% of the bank's own base rate.
Instead, anyone with savings of less than £10,000 will be offered the Reward Saver Account - replacing the Instant Savings Account - which pays 2% headline interest until the end of the year, even if the base rate falls.
In an attempt to simplify the savings plans, Barclays will pay interest not on the balance of the account but on the number of withdrawals made each year, but will be the only instant access account now available.
Those consumers who have more than £10,000 to save will instead be offered the Barclays Tracker account which guarantees to track within 0.75% of Barclays base rate and with no interest penalties.
Existing savings accounts will remain open for Barclays' 6m savers - including the Barclays Regular Savings Account which now allows two withdrawals each year before holders forfeit their bonus.
Additional moves will also see the launch of a Guaranteed Equity Savings Bond on June 16th, which has 7% return in Yr1 plus any increase in the value of the FTSE 100 over the next five years.
The new E-savings bond will pay a gross rate of 2.5% on balances of over £2,000 and 3% on £10,000 or more over a six-month term.
Changes to children's accounts will also increase savings rates to leave gross returns at between 1.75% to 3.75%.
|Barclays account||Interest Rate|
|Barclays Reward Saver (replaces Instant Access account)||Headline rate of 2%, which for six months will track any increase in repo rates but will not fall.|
|Barclays Regular Savings Account||Changes are likely to reflect that 85% of savers will receive the £25 bonus, along with 2.65% gross AER interest, rising to 3% on amounts over £5,000|
|Barclays Tracker||Balances over £10,000 are guaranteed to track base rate to within 0.75%|
|Guaranteed Equity Savings Bond||50% invested as a cash element and 50 % invested for 5 years linked to the FTSE 100.|
1 year component 7 % fixed rate of return
|e-bonds ||Minimum balance of £2,000. Interest paid at the end of term and added to the capital sum on maturity|
|Barclayplus and Junior Barclayplus||Rates from 1.75% to 3.75% dependent on age and amount|
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