Huge demand for cash ISAs

This March, Barclays has seen one of its busiest ISA seasons ever, with 50 per cent  more people taking advantage of their tax-free allowances by opening the Barclays Golden ISA - Issue 3. With interest rates at a historical low and increasing pressures on finances, it appears that savers are searching for the best rates available to maximise their returns.

Looking at the demand for ISAs from early March 2011 to 5th April, Barclays predicts that a quarter of applications for this period will hit on the last day - Tuesday 5th April - showing that there will be a surge of savers leaving it until the very last minute before they invest.

Barclays recently launched its highly competitive Golden ISA - Issue 3 paying 3.25 per cent AER/ 3.20 per cent tax free per annum variable to enable customers to make the most of their tax-free savings allowance. This rate includes a fixed rate introductory bonus of 1.00 per cent tax free per annum for 12 months. This offers customers a great rate for the first year, and continues to offer a competitive rate after the expiry of the introductory bonus in 12 months' time. Barclays also launched the ‘Barclays Rate Promise', giving a commitment to customers that the interest rate on Golden ISA - Issue 3 will move in line with the Bank of England Bank Rate until 1 March 2012.

Andy Gray, head of savings for Barclays said: "The massive surge in customer applications for our Golden ISA - Issue 3 demonstrates that consumers are becoming more financially savvy and understand the benefits of ISAs as a smarter way to save. They are hunting for rates that will give them long-term value and help them make the most of their money, which is especially important at a time when economic conditions are tough."

Customers can open Golden ISA - Issue 3 through Barclays branches. In addition, Barclays current account customers using online and telephone banking can apply online at barclays.co.uk/savings or telephone 08457 555 555. As the end of the tax year fast approaches, Barclays wants to remind customers of the application deadlines for using their 2010/11 tax-free allowance:

Telephony applications will close at 23.00hrs on Tuesday 5th April and will reopen at 02.00hrs on 6th April for 2011/12 applications

Online banking applications will close at 23.00hrs on Tuesday 5th April and will reopen at 07.00hrs on 6th April for 2011/12 applications

Barclays branches across the UK will be operating business as usual hours.

And so, with only one week remaining of the 2010/11 tax year, Barclays is urging consumers to act now and ensure they have paid into an ISA to utilise their maximum tax efficient savings allowance before it's too late. The maximum savers can invest into an ISA at present is £10,200 of which £5,100 can be saved in a cash ISA. These limits will increase to £10,680 for the new tax year on 6th April 2011, of which £5,340 can be saved in a cash ISA.