ISA feature: M&S Bank's one-year fixed rate cash ISA

M&S store

While instant-access cash ISAs are often the best option for savers looking for a flexible savings option, for those wishing to invest a lump sum a fixed-rate ISA is often the best bet as you could get a slightly better interest rate.

The financial arm of Marks & Spencer, M&S Bank, is offering a one-year cash ISA paying 1.85% with a minimum deposit of £500, but, as with any fixed-term bond, you can't make further contributions.

If you haven't used up your ISA allowance for the tax year already, you can put up to £5,640 in the account and with the interest rate fixed for the year, you will receive your return once the 12 months are up.

During the term you cannot make a partial withdrawal and there is a penalty charge of £50 if you withdraw the whole amount, so it is worth making absolutely sure you will not need to touch the money for a year.

The M&S account is available to open online, by phone and post, and can be accessed by phone and post. The account also allows transfers-in from older ISAs you might have.

M&S provides more fixed-rate alternatives if you're happy to lock your savings away for longer. The bank offers a two-year account paying 1.95% interest and a three-year account paying 2.05%.

Go to for more information or call 0808 002 2222.

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M&S should be ashamed - these ISA rates are pathetic! ISA of the Month? Who made that headline up?  M&S themselves? How much are M&S paying Moneywise for promoting this "deal"? 
I had considered Moneywise to be impartial - I know differently now after this blatant advertising of an ISA that will be worth LESS after inflation! Absolutely disgusting in these times where the hard hit savers are being hammered over and over. You know what you can do with the magazines!

It's about time this government got their act together so that savers are once again rewarded properley and it's no good them blaming the banks for not conducting themselves properley - blame culture in evidence again - Mr Cameron has a massive shock awaiting him that's  for sure.

Dear Falconman,

Apologies for any confusion. The story was published when the account had a higher rate (and much more competitive rate), and because we liked some of its other features. We updated the rate when the product changed but we should have updated the title as well. 

Kind Regards,

Ok, apology accepted, but please be more careful when offering advice in future. Your website is called "Moneywise" - lets keep it that way.

You call that bad ? !  - they have now reduced the rates by a further 0.2% to 1.65% 1 year,  1.75% 2Yr,  1.85% 3 year  and the variable rate - even worse -  from 2.25% March 6 (already down 0.5% from 2.75% now) to a piddling 1.30% - including 1.25% introductory bonus !