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New fixed-rate mini cash ISA from M&S money

Wednesday, 21 Feb 2007 10:50
M&S money has made it easy for investors to mix fixed and variable interest rates in the same mini cash ISA.

The new deal offers guaranteed interest rates of as much as 5.55% AER.

The interest rate is fixed over one, two or three years, with longer fixed-rate terms paying higher interest rates.

Mini cash ISA investors can choose either fixed or variable rates of interest, or split their annual allowance between the two.

The offer is available from February 28th 2007.

The M&S mini cash ISA fixed-rate savings option offers 5.40% over a one-year term, 5.45% over a two-year term, and 5.5% over a three-year term.

"We are now responding to customers who asked us for the option of guaranteed interest rates as well as the convenience of instant access variable rates," said M&S money chief executive Brendan Cook.

"We have made this as easy as possible so customers can make their own choices. And anyone who has already used their ISA allowance can take advantage of our fixed rates outside an ISA."

For the fixed-rate option, early withdrawal charges will apply of £50 for one-year term, £75 for the two-year term, and £100 for the three-year term.

Customers can invest between £500 and £3,000 per tax year in the fixed-rate ISAs, and transfer money in from other cash ISA providers.

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