SAVINGS
Reward ISA
Make your savings tax-efficient
Save for your medium-term goals with our Reward ISA.
Get higher interest rate in months you don’t dip in.
Interest rates
Interest is paid monthly. You’ll get the higher interest rate in months you make no withdrawals, and the lower interest rate in months you make one or more withdrawals.
Is the Reward ISA right for you?
Save for your medium-term goals
Whatever your medium-term goals, you can use this account to save for them.
Earn tax-free interest
You won’t pay tax on any interest your Reward ISA earns.
Add up to £20,000 each tax year
Use your annual ISA allowance to top up your ISA by up to £20,000 each tax year. You can top up by as much or as little as you like.
Get rewarded for not dipping in
You’ll have instant access to your whole balance – however, you’ll be rewarded with a higher interest rate in months you don’t make withdrawals or transfer an ISA out.
Reward ISA FAQs
You can open and manage your account in the Barclays app(2) or Online Banking(3). Alternatively, you can do this in a branch or over the phone. See how to apply.
ISA stands for ‘Individual Savings Account’ – it's a tax-efficient savings or investment account.
Usually, interest earned on savings account is taxable if it exceeds your Personal Savings Allowance (PSA). With an ISA, interest you earn doesn’t count towards your PSA. You won’t pay income tax, tax on dividends or capital gains tax on an ISA, so returns your ISA makes won’t be taxed. Terms, conditions and ISA rules apply.
If you have an existing ISA, held with us or another provider, and you want to transfer the balance to a Reward ISA, you’ll need to give us the details of the ISA you want to move the money from. You can do this in our app and Online Banking.
In our app, go to ‘Products’ and scroll down to ‘Our services’, then tap ‘Transfer-in an existing ISA’ and ‘Get started’.
In Online Banking, select ‘Save’ in the top menu, then ‘Transfer an ISA in’ from the dropdown menu.
Alternatively, you can speak to us and we’ll help you do this.
The ISA rules changed from 6 April 2024. This means you can now pay into more than one cash ISA in the same tax year.
However, we can only let you to pay into one cash ISA with us each tax year right now. You can still open and pay into cash ISAs with different providers, as long as you don’t pay in more than £20,000 across them all.
The government sets the limit on the maximum amount you can add to your ISA accounts each tax year (6 April to 5 April). This limit is known as your annual ISA allowance and is £20,000 for the 2024/25 tax year. You can make withdrawals from this account and put the same amount of money, or less, back in within the same tax year without it affecting your annual ISA allowance. Any interest your ISA earns won’t reduce your annual ISA allowance and you can make unlimited transfers into this account from another ISA, up to the maximum account limit of £10 million.
You don’t have to top up an ISA with the full £20,000 – just what you can, when you can. However much you top up, any interest you earn will be tax-free. Remember, if you don’t use your ISA allowance by the end of the tax year, you’ll lose it as it won’t roll over into the next year.
You’ll get a higher interest rate in months you don’t make withdrawals, so you’ll earn the most interest by adding to your balance and not taking money out. This account is suitable for money you’re saving towards your medium-term goals.
Remember, there are rules around withdrawing from or transferring an ISA. Our guide to ISAs can help you understand them.
If you're looking for a savings account that's not an ISA but still allows instant access, you could try our Reward Saver account which rewards you with a higher interest rate in months you don’t make withdrawals. Barclays Blue Rewards members and Premier customers can open our easy-access Rainy Day Saver and Blue Rewards Saver accounts too.
If you’re saving for the long term, you could explore your our Fixed Rate Bond, or your investment options with us. Investments may offer higher returns than cash savings in the long term.
For savings accounts, the interest rate tells you how much interest we’ll pay you for saving with us. The higher the interest rate, the more interest you’ll earn by leaving money in the account.
The returns you make on a cash ISA are tax-efficient, so you won't pay income tax on the interest you earn on this account.
Yes, you can set up a savings goal in our app and track your progress.
Any interest earned on a cash ISA doesn’t impact your Personal Savings Allowance (PSA).
Your PSA is the total amount of interest you can earn each tax year, across all your accounts (except ISAs) with any bank or building society, without paying tax. The tax year runs from 6 April to 5 April.
For basic-rate taxpayers, the PSA is £1,000 and for higher-rate taxpayers, it’s £500. For additional-rate taxpayers, the PSA is £0.
You’ll need to start paying tax on any interest you earn above your PSA. Go to HMRC's site to find out how to do this.
You can read our guide to ISA rules to find out more.
Summary box
Account name
Reward ISA
What is the interest rate?
Rates are effective from 13th November 2024.
Balance |
Tax-free p.a. % |
AER % |
|---|---|---|
|
£1+ The higher interest rate applies when no withdrawals have been made out of the account since the account was opened, in the case of the first month, or since interest was last paid into the account. This rate will apply for the month and reset for the following month. |
2.72 |
2.75 |
|
£1+ The lower interest rate applies when one or more withdrawals have been made out of the account since the account was opened, in the case of the first month, or since interest was last paid into the account. This rate will apply for the month and reset for the following month. |
0.85 |
0.85 |
Interest is calculated daily using your statement balance and paid monthly on the first working day of the month.
The interest rate you’ll receive for each month depends on whether you’ve made any withdrawals or transfers-out from your Reward ISA since you opened it (in the case of the first month) or since interest was last paid into the account.
Can Barclays change the interest rate?
Yes, rates are variable.
We can increase or decrease the interest rates for any of the reasons set out in your Customer Agreement (which includes the ‘Barclays and you: Terms and conditions for Personal customers’ and your additional terms).
For more details on when we might change the interest rates and the notice we’ll give you, please read your Customer Agreement, including the additional terms. You can read it online at barclays.co.uk/rca
What would the estimated balance be after 12 months based on a £1,000 deposit?
Deposit amount |
Number of withdrawals |
Estimated value after 12 months |
|---|---|---|
|
£1,000 |
If no withdrawals are made every month |
£1,027.55 |
|
£1,000 |
If a £10 withdrawal is made every month |
£887.97 |
The estimated value if no withdrawals are made is based on no change to the interest rate over 12 months.
The estimated value if a £10 withdrawal is made every month assumes a £10 withdrawal has been made on the first day of each calendar month for 12 months (£120 total withdrawn), and interest has been added to the account.
How do I open and manage my account?
Open and manage your account – in our app, in Online Banking, in a branch or over the phone
Eligibility criteria – you must be 18 years old or over and a UK resident for tax purposes
Minimum balance – £1
Maximum balance – £10 million
The minimum opening balance allowed is £0 if the Reward ISA is being funded by an ISA transfer-in, otherwise the minimum deposit you can open with is £1.
See how to apply.
Can I withdraw money?
Yes. Where you make a withdrawal or transfer-out since the account was opened, in the case of the first month, or since interest was last paid into the account, interest will be payable at the lower Reward ISA rate for that month. If you think you’ll make regular monthly withdrawals, this might not be the right ISA for you.
Additional information
- Money withdrawn from your Reward ISA and put back into the account within the same tax year doesn’t count towards your annual ISA allowance
- Transfers-in and transfers-out from and to other ISAs are allowed – a transfer-out from this account will count as withdrawal for that calendar month. When applying for an ISA with us, we’ll give you the option of transferring in an ISA when the account is opened
- You can offset your Reward ISA in a Barclays offset mortgage. If you do this, you won't earn any interest on your savings
- We may withdraw the availability of Reward ISA at any time without notice. This will only apply to new accounts opened from that time.
How to apply
If you already bank with us, you can open an account in the Barclays app or Online Banking. If you don't use Online Banking yet, you can register here.
If you don’t bank with us
You can book an appointment to open an account in one of our branches. You’ll need proof of your identity and address.
Saving and investing
Both saving and investing can help you plan for the future. Our guide can help you find what suits you.
Other ways to save and invest
Important information
‘AER’ (Annual Equivalent Rate) shows what the interest rate would be if interest was paid and compounded once each year. ‘Tax-free’ means interest is exempt from UK income tax provided all ISA conditions are met. The level and basis of tax can change, and the value of tax relief depends on your personal circumstances.(Return to reference)
You need to be 18 or over to access this product or service using the app. Terms and conditions apply.(Return to reference)
Online Banking and the Barclays app are only available if you’re registered to use these services.(Return to reference)