 M&S Money is launching a new Cash ISA option, called Advantage Cash ISA, with a variable rate of 3.10% AER. The rate includes a 1% bonus until 21 April 2010, after which the rate will revert to 2.10% AER.
The minimum deposit is £100 as a lump sum, or £25 by monthly direct debit, up to the Cash ISA allowance of £3,600 per tax year. Transfers from other ISA providers are allowed.
For savers looking for a guaranteed return within an ISA, M&S Money is also offering a new Fixed-Rate Savings option, with interest rates over 1, 2 and 3 years up to 2.75% AER. This is a strictly limited offer and is available both inside and outside an ISA.
Research from M&S Money suggests that, even if the base rate falls below 1.5%, almost three-quarters (73%) of people surveyed said they would continue to save, and a further 11% plan to start saving. Only 6% said that a low interest rate would stop them saving.
"We encourage people to make the most of tax-free savings, especially the 42% of those we surveyed who don't use their Cash ISA allowance. With the new Advantage Cash ISA option, and a choice of fixed rates, savers can go for a variable rate with bonus, or a guaranteed return, or split their annual Cash ISA allowance of £3,600 between the two,” said Andy Ripley, deputy Chief Executive of M&S Money.
|
