M&S offers new fixed rate savings options

One year on from the increase in ISA limits for savers aged 50?plus, these savers may have one?year fixed rate accounts that are coming to maturity now.

For those seeking a safe home for their nest?eggs, M&S Money is offering new Fixed Rate Savings options with effect from Monday 18th October 2010, for up to three years at 3.50%. The fixed rates are available within or outside of an ISA.

The guaranteed interest rates are available over 1, 2 and 3 years at up to 3.50% AER/gross.  This is a strictly limited offer and replaces the previous issue.

1 year term - 3.00% AER/gross, 2.40% net
2 year term - 3.20% AER/gross, 2.56% net
3 year term - 3.50% AER/gross, 2.80% net

Customers can choose between fixed and variable rate options within the M&S ISA, or split their annual allowance between the two, using one simple application form.

The M&S Flexi Cash ISA option offers a variable rate of 2.65% AER/tax-free.  This includes a bonus rate of 1.25% for 18 months from initial deposit.

Minimum deposit £100
From £25 a month by direct debit
Transfers from other Cash ISA providers accepted
Withdrawals without penalty, although once the maximum Cash ISA allowance of £5,100 for this tax year is reached, any withdrawals cannot be replaced

Customers can apply for M&S Fixed Rate Savings online at marksandspencer.com/fixedratesavings.