M&S launches new Cash ISA options

M&S Money is launching a new Cash ISA option, called Advantage Cash ISA, with a competitive variable rate of 3.10% AER/tax-free, on Thursday 22nd January 2009. The rate includes a 1% bonus until 21st April 2010.

For savers looking for a guaranteed return within an ISA, M&S Money is also offering a new Fixed Rate Savings option, from 22nd January 2009, with interest rates over 1, 2 and 3 years up to 2.75% AER/tax-free. This is a strictly limited offer and is available both inside and outside an ISA.

The launch of the new Cash ISA options comes as research from M&S Money reveals that despite the difficult economic environment, people are still planning to put their money into savings. In return, they want a safe home for their money, a good return and some certainty about interest rates.

Even if 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.

When asked what was most important when putting their money into savings, a third (34%) said it was having a provider they could trust. Access to their savings came second (22%), followed by interest rate (20%) and rates that are guaranteed or fixed (15%).

With falling interest rates, getting a tax-free return is more important then ever. Overall, 81% of those surveyed said that this would be a priority in 2009.

Andy Ripley, deputy Chief Executive of M&S Money, commented; "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.

"As well as earning a good return, people want a safe home for their money. We can reassure our customers that all cash savings with M&S Money are protected under the UK Financial Services Compensation Scheme, so the first £50,000 per customer of any cash savings are 100% guaranteed".

Customers can apply at marksandspencer.com/isa