Barclays launches cash bonus of up to £500 via ISA 'reward'

Under the scheme, customers transferring £100,000 or more into a qualifying Barclays cash ISA will receive the maximum £500 reward.

The bank has structured the incentive across three tiers, with smaller transfers also qualifying for payments.

Customers moving between £25,000 and £49,999 will receive £100.

Those transferring £50,000 to £99,999 qualify for £200.

The campaign launched on September 15 and will run until November 28.

To take part, savers must hold a Barclays current account and complete their transfer using the bank’s ISA transfer-in service.

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New customers can open a current account specifically to access the offer, but it must be active before starting the transfer.

A minimum of £25,000 must be transferred to qualify for any reward.

All transfers must come from ISA accounts held with other providers and be processed through Barclays’ official transfer-in service to be eligible.

The offer applies to a range of Barclays cash ISA products, including the Instant Cash ISA, Reward ISA and fixed-term flexible cash ISAs.

For flexible cash ISAs, transfers must be completed within 30 days of opening the account.

Barclays’ most competitive rate is currently four per cent AER tax-free per annum via its Premier 1-Year Flexible Cash ISA.

Standard customers can access 3.70 per cent AER tax-free annually through the 1-Year Flexible Cash ISA.

Eligibility requirements specify that applicants must be UK residents aged 18 or over.

Sian McIntyre, the head of Savings at Barclays, said: "We know that many people want the security of a cash ISA but also the confidence that their money is working as hard as possible for them. We're therefore delighted to launch an offer that rewards the nation's savers."

The promotion comes at a time of strong competition in the savings market. Several high street and challenger banks are offering cash bonuses to attract both current account and ISA transfers.

Alastair Douglas, the CEO of Totally Money, said: "Loyalty doesn't pay, but moving your money can. And, if the Lloyds accounts aren't for you, then look at the offers from First Direct, who are offering £200 in cash and vouchers, or Co-Op Bank who will pay you £100 up front, and an extra £75 if you stay."

Mr Douglas also highlighted the benefits of the Current Account Switch Service.

He noted that balances, payee details and regular payments are automatically moved between providers.

"With the Current Account Switch Service, it's easy your regular incoming and outgoing payments will all be moved automatically, along with your balance and any saved payee details," Mr Douglas said.

"And not only can you often benefit from a cash incentive, but also better service, improved savings rates, and interest-free overdrafts."

Industry experts say the Barclays promotion underlines how banks are competing hard for customer deposits as savers shop around for higher returns.Rates have risen across the market in response to the Bank of England’s decisions to keep interest rates higher for longer.

Analysts suggest that many savers are now willing to move significant sums in search of the best deals, with cash ISA transfers rising steadily this year. For Barclays, the tiered reward system represents both a customer acquisition strategy and a bid to deepen relationships with existing current account holders.

The deadline for applications remains November 28, giving savers a window of more than two months to take advantage of the offer.