Get answers to commonly asked questions about Barclays Stockbrokers’ interest rate changes on cash balances in a Barclays Stockbrokers SIPP, Investment ISA and Corporate ISA
Cash interest rates on cash balances held in ISAs and SIPPs

FAQs – Interest rates on cash balances

1. When will the new interest rates take effect from?

In line with the Bank of England’s decision to reduce interest rates, we will be reducing our interest rates on cash balances from 1 December 2016. Also, rates you receive will no longer be linked to Barclays Base Rate.

2. What’s the Barclays Bank Base Rate?

Barclays Bank Base Rate was used to apply the interest we pay on cash balances in our ISA and SIPP accounts, but this is no longer the case. The interest rates for both our ISA and SIPP accounts are now managed by us (a “managed rate”) which is one that we set and can change. However, interest paid on cash balances held in a Barclays Stockbrokers MarketMaster®, Investment Club and Pension Trader account (PTA) still continues to link to Barclays Bank Base Rate.

The Barclays Bank Base Rate typically follows the Bank of England Bank Rate but it’s not guaranteed. The Bank of England Bank Rate can go up or down and is announced by the Bank of England’s Monetary Policy Committee every month.

3. How do I see my cash interest?

You can see any interest paid in your online view and account statements.

4. How is the interest paid and when?

Interest is paid at the following intervals for each of our account types:

ISA – quarterly on the last Friday of the quarter

SIPP – quarterly on the last Friday of the quarter

MarketMaster, Investment Club and PTA – monthly on the last Friday of the month

5. What’s a banded interest rate structure?

A banded interest rate means that the rates in the table below apply to only the portion of the balance in each band shown, not the cash balance as a whole. Each band of the overall cash balance receives different rates of interest as shown below, to give an overall blended rate.

Current interest rates

​Cash balance band Interest paid on this band only/AER2 Tax-free rate3 ​Net rate4
​£1 - £999 0% 0%​ ​0%
​£1,000 - £49,999 ​0.2% pa ​0.2% pa ​0.16% pa
£50,000 and over ​0.5% pa ​0.5% pa ​0.4% pa

Rates are variable

As an example, on £100,000 held in cash, you receive no interest on the first £999, then 0.2% on the balance from £1,000 up to £49,999, then 0.5% on the final £50,000. So the interest received is a blend of the three tiers above and represent 0.348% on £100,000.

New interest rates

In line with the Bank of England’s decision to reduce interest rates, we will be reducing our interest rates on cash balances from 1 December 2016. Also, rates you receive will no longer be linked to Barclays Base Rate.

​Cash balance band Interest paid on this band only/AER2 Tax-free rate3
​£1 - £999 0% 0%​
​£1,000 - £49,999 ​0.05% pa ​0.05% pa
£50,000 and over ​0.25% pa ​0.25% pa

6. Will my interest rate move if base rates increase or decrease?

The interest rate applied to our ISA and SIPP accounts can be changed at any time. For example, we’ve now increased our interest rates and Barclays Bank Base Rates haven’t changed. While we’d expect there to be a change if base rates rise, it’s not certain and it may not be by the same amount as the full rise in base rates.

7. Have the interest rates on cash balances held in a Barclays Stockbrokers MarketMaster®, Investment Club and Pension Trader Account (PTA) also changed?

Interest rates paid on cash balances held in a Barclays Stockbrokers MarketMaster®, Investment Club and PTA haven't changed. They’ll continue to move in line with the Barclays Bank Base Rate.

View MarketMaster and Investment Club rates and charges

View PTA rates and charges

8. Do I get a better cash interest rate on cash ISAs than a Barclays Stockbrokers Investment ISA?

Yes and if you plan to hold cash as part of your portfolio for an extended period of time, you may wish to consider transferring some or all of your Investment ISA to a Barclays cash ISA or another cash ISA provider.

9. For deceased estates which include former Barclays Stockbrokers Investment ISAs or Corporate ISAs, is tax deducted on interest payments?

As you may be aware, ISAs lose their tax-free status upon the date of death of the investor therefore interest paid on cash balances held in former ISA accounts is paid subject to deduction of basic rate income tax, currently 20% where applicable.

1 Correct as at 7 January 2015.

2 AER (Annual Equivalent Rate) illustrates what the interest rate would be if interest was paid and compounded once each year.

3 Tax-free – indicates that interest earned on cash held in an ISA or SIPP is not subject to UK Income Tax and will be paid gross, provided that all ISA and SIPP conditions are met. The level and basis of tax can change and the value of tax relief depends on your personal circumstances.

4 Net rate– Is the rate of interest which is payable after allowing for the deduction of basic rate tax currently at 20% (if applicable). This only applies to former Investment ISAs where we have been notified that the holder is deceased. Account holders should check their own tax situation, as there may be a further potential tax liability.

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