8 March 2010

It's chocolate eggs and nest eggs for savers this Easter

Get ready in time for the end of tax year, and make the most of tax-free savings.

With the end of the 2009/2010 tax year coinciding with Easter weekend, savers would be wise to put a reminder in their diaries to avoid missing out on their full tax-free savings allowance.

The deadline for opening or topping up Cash ISA savings is 5th April which falls on the Easter Monday bank holiday this year.

There is also a new limit for Cash ISAs which means that savers have the opportunity to put more of their money into a tax shelter.  Anyone aged 50 or over on or before 5th April 2010 can already save up to the new £5,100 limit.  This will apply to all Cash ISA savers from 6th April 2010.

With the historically low base rate of 0.5%, getting a tax-free return is more important then ever.  However, recent research for M&S Money* revealed that 46% of Cash ISA savers don't plan to use their full allowance, and a further 40% say they don't intend to go up to the new limit from 6th April.

Tax-free saving tips from M&S Money

• What's an ISA? - it's a tax-efficient way of sheltering your savings.
• There are two separate types of ISA - Cash ISAs and Stocks and Shares ISAs.
• The annual ISA allowance will be £10,200 from 6th April - up to £5,100 in a Cash ISA with one provider, and the remainder in a Stocks and Shares ISA with the same or a different provider.
• Top-up ISAs before end of tax year - if you don't use your full annual ISA allowance before 6thApril - currently £7,200, of which £3,600 is the Cash ISA limit for under 50 year olds - it's lost forever.
• Think carefully before making withdrawals - once you have paid the full annual allowance into a Cash ISA, any amount withdrawn cannot be replaced during that tax year.
• ISAs can be transferred to other providers - this means you can change to a better rate, but not all providers allow transfers into their ISAs so it's best to check with them first.
• Consider a guaranteed interest rate - if you're looking for a guaranteed return, Cash ISAs are available with fixed rates of interest, as well as variable rates.

Colin Kersley, M&S Money Chief Executive, said; "ISAs were launched in April 1999, and are still popular with people who can see the benefit of tax-free saving.  Although interest rates are at a historic low, good offers are still available in the competitive savings market.

"Safety is also a priority in these uncertain times.  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".

M&S Money is offering its new Flexi Cash ISA option with a variable rate of 2.65% AER/tax-free**.  This includes a bonus rate of 1.25% for 18 months from initial deposit, after which you will earn a variable rate which is currently 1.40% AER/tax-free**.

• Minimum deposit £100
• From £25 a month by direct debit
• Transfers from other Cash ISA providers accepted***
• Withdrawals without penalty, although any amount withdrawn can't be replaced during that tax year

ENDS

For further information please call the M&S Money press office:

Simon Coughlin on 020 7992 1574
simon.coughlin@mandsmoney.com

Liz Neild on 01244 686 068
liz.a.neild@mandsmoney.com

Notes to Editors

Research carried out on behalf of M&S Money by YouGov 26th - 28th January 2010, among 2,044 people aged 18 and over. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).

**AER is the Annual Equivalent Rate and illustrates what the rate of interest would be if interest was paid and compounded on an annual basis. Tax free means the rate of interest where interest is exempt from income tax. Interest will be credited to your account annually.

***Customers will not be able to switch any balance held in the M&S Tracker of Advantage Cash ISA options to the new Flexi Cash ISA option.

M&S Money (the trading name of Marks & Spencer Financial Services) was founded in 1985 as the financial services division of Marks and Spencer Group plc, making 2010 the company's 25th anniversary.

The company is a top-ten credit card provider and the second-largest travel money retailer in the UK.  M&S Money also offers a range of insurance cover, including home insurance and car insurance, as well as loans, savings and investment products.

In November 2004, Marks & Spencer sold M&S Money to HSBC. HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 8,000 offices in 88 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of US$2,364 billion at 31 December 2009, HSBC is one of the world's largest banking and financial services organisations. HSBC is marketed worldwide as ‘the world's local bank'.

M&S Money has an executive committee comprising an equal number of representatives from HSBC and Marks & Spencer.