Barclays signals end of cash Isa season

The bank's 3.1%-paying Golden Isa, which includes a one percentage point bonus for a year, will revert to 2.08% (with no bonus) on 2 June for new customers (see the Cash Isas guide).

The account does not allow transfers from old Isas, while new Barclays customers must apply in a branch, though existing customers with online access can apply via the web.

Anyone who takes out the Isa by 1 June will be unaffected by the rate drop.

Top mainstream offer

Barclays's deal is the best mass-market option available for anyone depositing money for the current tax year, up to the annual cash isa limit of £5,100.

Santander's Flexible Isa pays a higher 3.2% but is only available to anyone with a Santander or Alliance & Leicester (A&L) current account, or to anyone applying for one. This was pulled from general release last week (see the Santander Isa withdrawn MSE News story).

Both Santander and A&L have good current account options, including a £100 bonus on opening (see the Best Bank Accounts guide).

'Left languishing'

The Barclays and Santander deals are the only easy access Isas paying over 3%.

Martin Lewis, MoneysavingExpert.com creator, says: "Barclays's best-buy cash Isa has outlasted the other big player of the Isa season, yet the declaration is further evidence providers push Isa rates high during the season but are prepared to leave customers languishing in the doldrums for the rest of the year.

"Everyone who has an Isa from any year, unless locked into a guaranteed rate, should monitor what it pays and consider a transfer if it's paying anything less than 2.5% (see the Isa Transfers guide)."

Further reading/Key links

Top deals: Cash Isas, Isa Transfers