23 November 2010

New M&S Fixed Rate Savings Up To 3.50% As Over-50s See Their One-Year Deals Maturing

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 www.marksandspencer.com/fixedratesavings or by calling free on 0808 001 1111 or Flexi Cash ISA on 0808 002 2222.

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

Liz Neild 02144 686068, liz.a.neild@mandsmoney.com

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

Notes to editors

M&S Fixed Rate Savings:

Within an ISA – minimum deposit £500 up to the Cash ISA allowance of £5,100 per tax year. Transfers from other ISA providers allowed. The Flexi Cash ISA interest rate of 2.65% includes a 1.25% bonus for 18 months from initial deposit, after which customers will receive a variable rate, which is currently 1.40% AER/tax-free.

Outside an ISA* – minimum deposit £500, maximum £1 million.

Early withdrawals are permitted during the term but will be charged at a fixed flat withdrawal charge (£50 for 1 year term, £75 for 2 year term, £100 for 3 year term).  The charge may mean a customer gets back less than they originally deposited if they withdraw their savings before the term end date.  Partial withdrawals are not permitted. Alternatively interest can be paid direct to your nominated bank or building society account.

**AER is the Annual Equivalent Rate and illustrates what the rate of interest would be if interest is paid and compounded once a year.  Gross means the rate of interest before the deduction of tax applicable to interest on savings. Tax-free means the rate of interest where interest is exempt from income tax. Net means the rate of interest after the deduction of tax applicable to interest on savings. For illustrative purposes only this is based on the basic rate of tax, currently 20%. Interest added annually.

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.