Within its Cash ISA, M&S Money is offering a new Fixed Rate Savings option.
This is a strictly limited offer from M&S Money and offers guaranteed interest rates over 1,2 and 3 years at up to 3.25% AER/gross. The minimum deposit is £500 and up to the new Cash ISA allowance of £5,100 can be invested per tax year. Transfers are accepted from other ISA providers.
The savings accounts are available as a fixed or variable rate within the Cash ISA or split between the two.
The M&S Cash ISA option offers a bonus rate of 1.25% for 18 months from the initial deposit and a variable rate of 2.65% AER/tax-free.
The minimum deposit is £100 amd you can pay by direct debit from £25 per month.
Withdrawals can be made without penalty but if you do withdraw an amount you cannot replace it within the same tax year. Transfers from other Cash ISAs are accepted.
With the start of the new tax year, according to Barclays Wealth, a third of their Barclays Stockbrokers Investment ISA bolders plan to invest a lump sum at the start of the new tax year.
Barbara-Ann King, Head of Investments at Barclays Stockbrokers “When it comes to investing in a tax efficient manner, it can be beneficial to take full advantage of Investment ISAs early, as soon as the new tax year begins – especially as the allowance has increased for 2010/11.
By investing your ISA allowance at the start of the tax year, you can effectively get an extra year of tax free growth compared to someone investing on the last day. This tax year an individual can invest up to £10,200 in an Investment ISA, and the portfolio will be free from Capital Gains Tax on any growth and Income Tax on dividends.”
Looking at the ISA options options available, whether Cash ISA or Investment, is certainly high on the agenda for many just now – not least the ISA providers seeking new business.