M&S cuts variable ISA savings rate
Wednesday, 12 Nov 2008 11:32
The savings rate on M&S Money's Variable Cash ISA has tumbled following the Bank of England's interest rate cut last week.
Customers will now receive interest of three per cent instead of the 4.5 per cent they had previously accrued after M&S slashed the rate by 1.5 per cent, in line with the Bank of England's decrease.
M&S said the ISA's interest rate was guaranteed to at least match that of the Bank's base rate until January 1st, 2010.
And it highlighted the rates on some of its other savings plans.
Its Cash ISA, a fixed-rate savings option, pays five per cent interest to customers holding the investment for one year and 4.5 per cent for those with two and three year terms.
The non-ISA fixed-rate savings plan offers five per cent interest AER/gross over one year and 4.5 per cent over two or three.