M&S Money increase Variable Cash ISA interest rate

Thanks to the M&S Cash ISA Guarantee to be at least equal to Bank of England base rate until 31st December 2007, M&S Money is increasing its variable Cash ISA rate from 5.50% to 5.75% AER/tax-free with effect from Friday 6th July 2007.

This is in response to the decision by the Monetary Policy Committee to increase the Bank of England Base Rate by 0.25%, and will apply to the M&S Mini Cash ISA, Tessa Only ISA and the cash component of the M&S Maxi ISA.

M&S Fixed Rate Savings are also available inside an ISA wrapper.

Guarantee Interest Rates:

1 year term 6.16% AER/tax free*
2 year term 6.06% AER/tax free*
3 year term 6.00% AER/tax free*

Unlike most providers, M&S Money allows customers to mix and match their savings between its fixed and variable rate savings options within their Cash ISA. Customers can choose between fixed and variable rates of interest, or split their annual allowance between the two, using one simple application form.

Transfers into M&S Cash ISA (both fixed and variable rates) from other providers' Cash ISAs are accepted.

* Within an ISA - the minimum deposit is £500 up to Mini Cash ISA allowance of £3,000 per tax year.

* Early withdrawals are permitted during the term but will be charged at a fixed flat withdrawal charge (£50 for 1 year term, £75 for 2 year term, £100 for 3 year term). The charge may mean a customer gets back less than they originally deposited if they withdraw their savings before the term end date. Partial withdrawals are not permitted.