Cash ISA Questions

Individual Savings Accounts (ISAs) are tax efficient accounts for savings and investments that replaced Tax Exempt Special Savings Accounts (TESSAs) and Personal Equity Plans (PEPs).

Individuals aged 16 and over can subscribe to a Cash ISA. Anyone aged 18 and over can subscribe to a Stocks and Shares ISA. Investors must be resident and ordinarily resident for tax purposes in the UK or be a crown employee serving overseas (for example a member of the armed services), or be married to, or in a civil partnership with, a crown employee serving overseas.

There are two types of ISA available: Cash ISA and Stocks & Shares ISA

Cash ISA - You can subscribe to one Cash ISA each tax year. Of the overall £7,200 ISA allowance, up to £3,600 can be subscribed to a Cash ISA each tax year. If you will be aged 50 or over on 5 April 2010 you have a higher ISA allowance of £10,200 (effective from 6 October 2009), of which up to £5,100 can be subscribed to a Cash ISA each tax year.

Stocks and Shares ISA - You can subscribe to one Stocks and Shares ISA each tax year. The maximum amount you can subscribe is £7,200 each tax year or, if you will be aged 50 or over on 5 April 2010, the maximum amount you can subscribe is £10,200 (effective from 6 October 2009). Both of these amounts are less any amount you have already subscribed to a Cash ISA.

Find out more about the changes to Cash ISA limits and Stocks and Shares ISA limits.

Find out more about the changes to Cash ISA limits and Stocks and Shares ISA limits.

We offer a Cash ISA and a Stocks & Shares ISA that allows you to invest in a range of unit trust funds.

Our Cash ISA is a deposit savings account. You can deposit money at variable and/or fixed rates of interest. Our Advantage Cash ISA option pays an attractive, variable rate of interest along with a 1% bonus until 21 July 2010 (interest rate subject to change). The Fixed Rate Savings option is currently offering Fixed Rate Bonds over one year, two years and three years. We may withdraw these Fixed Rate bonds at any time and decline further applications.

The minimum lump sum opening deposit for our Advantage Cash ISA option is £100. Or you can save from just £25 a month via direct debit.

If you held a balance in the M&S Tracker Cash ISA option before 22nd January 2009, the minimum amount you can deposit by lump sum or monthly direct debit is £10. Unfortunately it is not possible to top-up into the Tracker Cash ISA option online so please contact us on 0800 028 28 24 to top up. Calls may be recorded.

The minimum deposit in any of the Fixed Rate Savings we are currently offering is £500. The maximum you can subscribe to the Cash ISA is £3,600 in each tax year - or £5,100 if you will be aged 50 or over on 5 April 2010.

Find out more about the changes to Cash ISA limits and Stocks and Shares ISA limits.

If you would like to open a Cash ISA with a lump sum, complete our online application form.

If you would like open a Cash ISA with monthly savings or complete an Cash ISA transfer, these are offered separately for you to print and complete.

Alternatively, you can apply by phone on 0808 002 2222. Lines are open 8am to 8pm Monday to Friday, 9am to 5pm on Saturday.

You will receive a letter of acknowledgement when you open the account. Written confirmation will be sent whenever you deposit money in the Advantage Cash ISA option and/or the Fixed Rate Savings Option. If you deposit money in any Fixed Rate Savings Bond the confirmation sent will give details of the start date, maturity date and the fixed rate of interest that will apply until the maturity date. If you choose to make a monthly deposit via direct debit you will not be sent a written confirmation after each direct debit payment. You will receive an annual statement for your Cash ISA in May detailing all transactions up to and including 5 April.

If your plans are more short term, or you'd like the reassurance of being able to access your savings at any time without penalty, then you should consider saving in the Advantage Cash ISA option under the M&S Cash ISA, which offers a variable interest rate. Our Fixed Rate Savings Option is designed to be held for the full term.

However, we appreciate that emergencies do happen and M&S will allow full withdrawals (partial withdrawals are not permitted) during your fixed term – but there will be an early withdrawal charge if you do (£50 for 1 year term, £75 for 2 years and £100 for 3 years). Please note that therefore you may get back less than you put in.

Remember that if you have fully subscribed to your Cash ISA in any tax year, any amount withdrawn cannot be subscribed again until the next tax year.

View our current savings rates.

For savings in our Cash ISA earning a variable rate of interest you can withdraw some or all of the balance on your account by telephone or in writing. The minimum amount you can withdraw is £10, unless the balance on the account is less than this.

If you think that you may need access to your money you should consider carefully any deposit into our Fixed Rate Savings as any withdrawal before maturity will be subject to a Withdrawal Charge. This Withdrawal Charge will be deducted from the final interest credited on withdrawal and if this is insufficient, from the amount deposited. Therefore withdrawal before maturity may result in you getting back less money than you deposited.

You can make a full withdrawal of any Fixed Rate Savings held. Partial withdrawals of a Fixed Rate Savings are not permitted. Withdrawal of a Fixed Rate Savings prior to maturity will be subject to the following Withdrawal Charges:

• 1 year Fixed Rate Savings - £50
• 2 year Fixed Rate Savings - £75
• 3 year Fixed Rate Savings - £100

Payment of amounts withdrawn will be by cheque made payable to you or direct to your bank or building society account.

Interest will be paid without the deduction of tax. If a parent gives money to a 16 or 17 year old to subscribe to a Cash ISA, and the interest earned, in addition to any other income earned on gifts to the child in the tax year exceeds £100, this interest will count as income of the parent for tax purposes and the parent must report the income to their local tax office. The tax benefits provided by a Cash ISA depend on individual circumstances and may change in future.

A Cash ISA opened in the current tax year with another ISA provider can be transferred to this Cash ISA. The entire account must be transferred. A Cash ISA opened in a previous tax year can be transferred to this Cash ISA. Either the entire account, or part of the account, can be transferred. You will need to complete our Cash ISA Transfer Form. We will contact your existing ISA manager and arrange for your existing Cash ISA to be transferred direct to us. Please note that your existing ISA manager may levy an exit charge.

Transfers of savings will not count towards your ISA allowance for the current tax year.

If you are transferring a Cash ISA opened in this tax year any unused allowance is carried forward to the new ISA provider. For example, if you deposited £2,000 in a Cash ISA with your current ISA provider and then transferred this to us, you will only be able to subscribe a further £1,600 to our Cash ISA to take your total to the £3,600 limit. Or if you will be aged 50 or over on 5 April 2010, you could subscribe a further £3,100 to take your total to your £5,100 limit.

Find out more about the changes to Cash ISA limits and Stocks and Shares ISA limits.

You can print and complete a Cash ISA Transfer form. This allows you to transfer to us a current tax year Cash ISA and/or a previous tax year Cash ISA.

Marks & Spencer Money believes that customers want to make up their own minds about our products. While we don’t offer advice, we’re happy to provide factual information about any of our products to help you make informed choices. Please call our Investor Helpline on 0808 005 5555. Lines are open weekdays 8am-8pm, Saturdays 9am-5pm. Calls are recorded. For financial advice, please consult an Independent Financial Advisor.

You can make a deposit via Debit Card. We accept Maestro, Visa Debit or Solo cards, which must be in your name and have enough cleared funds in the account.

Please note that we will only be deemed to be in receipt of your subscription when payment has been authorised by your debit card issuer. For online debit card payments received between 8am - 6pm Monday to Friday and 9am - 1pm on Saturdays the authorisation process will be completed immediately on receipt of your application. Outside these hours it may not be possible to carry out the debit card authorisation process immediately. This could delay the opening of your ISA until the next business day.

Interest is automatically credited to your account annually. Although, for Fixed Rate Savings you can choose to have interest paid directly to your nominated bank or building society account.

If you wish to top-up your existing Tracker Cash ISA option please contact our customer service advisors on 0808 022 2222. Alternatively you can top-up into our Advantage Cash ISA option online or by phone on the number above – calls may be recorded. Unfortunately it is not possible to top-up into the Tracker Cash ISA option online.