New Savings Account From M&S

Over 50s savers may be approaching the end of their one-year fixed rate savings account taken out to take advantage of the increase in ISA limits. M&S has a new account to consider.

M&S Money is offering new Fixed Rate Savings options for up to three years at 3.50%.

Guaranteed interest rates are available over 1, 2 or 3 years:

1 year term – 3.00% AER/gross, 2.40% net
2 year term – 3.20% AER/gross, 2.56% net
3 year term – 3.50% AER/gross, 2.80% net

The fixed rates are available within or outside of an ISA:

Within an ISA – minimum deposit £500 up to the Cash ISA allowance of £5,100 per tax year. Transfers from other ISA providers allowed. The Flexi Cash ISA interest rate of 2.65% includes a 1.25% bonus for 18 months from initial deposit, after which customers will receive a variable rate, which is currently 1.40% AER/tax-free.
Outside an ISA – minimum deposit £500, maximum £1 million.

Customers can choose between fixed and variable rate options within the M&S ISA, or split their annual allowance between the two, using one simple application form.

The M&S Flexi Cash ISA option offers a variable rate of 2.65% AER/tax-free, which includes a bonus rate of 1.25% for 18 months from initial deposit.

The minimum deposit is £100 and from £25 a month can be paid into the account by direct debit

Transfers from other Cash ISA providers accepted. Whilst withdrawals can be made without penalty, once the maximum Cash ISA allowance of £5,100 for this tax year is reached, any withdrawals cannot be replaced.

Customers can apply for M&S Fixed Rate Savings online at www.marksandspencer.com/fixedratesavings or by calling free on 0808 001 1111 or Flexi Cash ISA on 0800 002 2222.

M&S Money (the trading name of Marks & Spencer Financial Services) was founded in 1985 as the financial services division of Marks and Spencer Group plc. In November 2004, Marks & Spencer sold M&S Money to HSBC.