M&S launches new instant-access cash ISA

Last updated: Feb 10th, 2012
News by Ruth Jackson
Marks & Spencer

M&S Money has released its brand new Advantage Cash ISA, which pays 3%.

The tax-free savings account allows transfers in from other ISAs, making it the second-best instant-access rate on the market for people looking for a better home for existing ISA savings.

The best rate on the market comes from Newcastle Building Society's Bonus ISA (Issue 2), which pays 3.05%. But the Newcastle account can only be operated by post, whereas the M&S account is accessible by post and over the phone.

Check out all the top cash ISA rates available in our best ISA rates round up.

The M&S ISA can be opened with a minimum £100 lump sum, and after that you can set up a monthly direct debit to pay at least £25 a month into the account. It pays a variable rate of 3%, which does not include a bonus rate so there's no need to worry about your rate plummeting in 12 months' time. M&S money will write to you if your variable rate changes.

"We hope that keeping Advantage Cash ISA simple will reassure customers that their tax-free money is in safe hands. We have handled thousands of ISA transfers from other providers in recent years, so customers can be confident that transferring their other ISAs to us will be simple and straightforward," says Fleur Carruthers, savings and investments manager at M&S Money.

The Moneywise verdict:

This is an attractive rate for ISA transfers and is a slightly better account than Newcastle Building Society's offer simply because it allows telephone access to your money as well as postal. It's certainly one to consider but better ISA interest rates may well emerge as the ISA season hots up in the run up to the tax deadline on 5 April.

 

More about