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What is the Investment Saver?

We’ve created a new Investment Saver so that Investment Account holders can earn interest on their uninvested cash. Here’s how it works.

The value of investments can fall as well as rise and you could get back less than you invest. If you’re not sure about investing, seek independent advice.

What you’ll learn:

  • What changes have been made to Barclays’ group structure.
  • Why we have created an Investment Saver.
  • How the changes affect how you manage your Investment Account.

Due to a change in UK law Barclays, along with other major UK banks, has to make some changes to our structure.

These involve ring-fencing our day-to-day banking services. The aim of ring-fencing is to make financial institutions more resilient, so that if there are any shocks to the financial system they can recover efficiently and smoothly.

Smart Investor has become part of Barclays Bank UK PLC (our ring-fenced bank) and is provided by Barclays Investment Solutions Limited (Barclays Investment Solutions).

As Barclays Investment Solutions isn’t a bank, it can’t hold your uninvested cash as a deposit in the way Barclays Bank was able to, prior to the changes. Cash balances won’t receive interest in line with current interest rates.

To give you the opportunity to earn interest, we’ve created the Investment Saver for your uninvested cash. Here, we explain how it works.

Do all Smart Investor customers have an Investment Saver?

No, only customers with Investment Accounts have an Investment Saver for their uninvested cash. When we created the Investment Saver (which is provided by Barclays Bank UK) we made a one-off transfer of any uninvested cash from your Investment Account (provided by Barclays Investment Solutions).

If you’re happy for us to continue automatically transferring any uninvested cash from your Investment Account to your Investment Saver each day, you’ll need to give us your permission. You can do this either by completing the form we sent you, or by selecting this option within the Investment Settings section of the website.

Once you have given us your permission you don’t need to do anything further. But if you choose not to do anything, following the initial transfer, we won’t automatically move your cash unless you ask us to do so at a later date.

Any uninvested cash held in your Investment Saver will earn 0.15% interest each year from 30 September 2018 (this has increased from the 0.05% we previously communicated to you). No interest will be earned on cash in your Investment Account, Investment ISA or the Barclays SIPP.

This change won’t have any impact on your existing account numbers, and we will automatically move any cash needed to your Investment Account to fund investments, corporate actions and fees as required.

What happens to uninvested cash held in my Investment Account rather than in the Investment Saver?

This is held by Barclays Investment Solutions as Client Money. As Barclays Investment Solutions is not a bank, it can’t hold Smart Investor customers’ uninvested cash as a deposit in the way Barclays Bank did prior to the changes.

Client Money is placed by Barclays Investment Solutions with a panel of regulated and authorised banks it selects. Where the bank is authorised in the UK and eligible, deposits may be protected under the Deposit Protection Scheme, up to the applicable limit should one of those banks become insolvent (currently this is £85,000 for all cash held per depositor, per bank). The panel of banks is available here.

What about uninvested cash in my Investment ISA or Barclays SIPP?

Any uninvested cash you hold in your Investment ISA or Barclays SIPP is held by Barclays Investment Solutions as Client Money and won’t earn interest in line with current interest rates.  An Investment Saver isn't available for Investment ISAs or SIPPs.

Can I make transfers from my Investment Saver to my Investment Account?

Yes, you can transfer uninvested cash from your Investment Saver into your Investment Account. However, if there is not enough cash to cover an investment, a corporate action or fees, we will automatically move sufficient cash into your Investment Account.

If you’ve given us permission, we can also automatically move any uninvested cash from your Investment Account to your Investment Saver on a daily basis to give you the opportunity to earn interest.

How can I access my Investment Saver?

You can access your Investment Saver in the same way as you access your Investment Account, whether it’s online by logging in to My Hub, or over the phone.

Don’t forget to give us permission to continue to move cash from your Investment Account to your Investment Saver so you can earn interest. Watch our video to find out how

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