Spotlight On: Barclays Foundation ISA

The deal

Barclays Bank's new tax-efficient investment ISA offers access to a range of five funds, ranging from low-risk to high-risk.

The good points

The usual 1 per cent initial charge is waived if you buy online, there is no lock-in period or exit penalties and annual management charges are relatively low, at 1 per cent.

The bad points

The choice of funds is limited to Barclays Wealth, which may not be everyone's first choice of fund management house. However the funds are new and invest in turn in exchange traded funds which may provide more reliable returns.

Conclusion

The bank is trying to encourage people to make full use of their ISA allowance, not just the cash element. The Foundation ISA concept is fine, in that it gives a flexible way to buy into equities, but more seasoned investors may prefer Barclays' Investors' Choice ISA, which offers a choice of 14 of the best-performing funds . As ever, it's wise to talk to an expert before making an investment decision.