M&S reduces variable Cash ISA rate

Following last week's 1.00% Bank of England Base Rate change, M&S Money has reduced its variable Cash ISA rate by 0.50%. With effect from today, 8th December 2008, the rate is 2.50% AER/tax free.

M&S Money has guaranteed its variable Cash ISA rate to at least match the Bank of England's base rate until 1st January 2010.

Brendan Cook, Chief Executive of M&S Money, said; "We recognise that times are difficult, and that recent base rate reductions have meant lower savings rates for everyone. In light of this, we have reduced our variable Cash ISA rate by only half a percentage point, rather than the full amount announced by the Bank of England last week.

"We have seen a significant increase in the number of customers looking for fixed rates in recent weeks, to protect their cash while the uncertainty about interest rates prevails. Our current range offers fixed rates up to 3.25% both inside and outside an ISA wrapper".