Cash ISA with variable rate of 3.1% from M&S

M&S are offering a new Advantage variable rate Cash ISA with a rate of 3.1%AER.

The interest rate of 3.1% includes a 1% bonus until 21 April 2010. It reverts then to 2.1%.

The variable rate is subject to variation but taking this Advantage Cash ISA means that you don’t have to lock your cash away as you do with a fixed rate ISA.

You can access your money at any time, without incurring a penalty.

You can invest up to £3,600 in a Cash ISA in any one tax year.

With the Advantage Cash ISA, the minimum lump sum deposit is £100 and you can save from £25 a month via Direct Debit.

M&S also offer a fixed rate Cash ISA. Currently rates are 2.5% for 1 year fixed or 2.75% for 2 or 3 year fixed.

The minimum amount you can invest is £500.

An advantage of the fixed rate Cash ISA is that you have a guaranteed rate of interest for the term you choose.

A disadvantage is that there is an early withdrawal charge if you need to withdraw your money before you reach the end of your chosen term.