M&S slashes variable ISA rate by 0.5%

Tuesday, 13 January 2009 12:00

The interest rate on M&S Money's Variable Cash ISA rate has plummeted from 2.5 per cent to two per cent.

M&S made the decrease after the Bank of England cut the base rate by 0.5 per cent on Thursday to 1.5 per cent.

The cut to M&S's Variable Cash ISA is in line with the Bank of England's change. However M&S said the variable cash ISA was guaranteed to at least match the base rate until January 1st 2010.

And it highlighted its range of Fixed Rate Savings plans which offered guaranteed interest rates over one, two and three years.

Its fixed-rate Cash ISA offers interest of 2.75 per cent over one year, three per cent over two years and 3.25 per cent over three.

The non-ISA fixed-rate products offer the same interest, but there are no tax-free benefits.

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