Cash ISA Information

New ISA Limits

If you will be aged 50 or over on 5 April 2010, you are now entitled to a higher ISA savings limit of £5,100. Find out more about the changes to ISA limits to make the most of your tax-free savings.

Variable Rate Savings option

Our Advantage Cash ISA option gives you a great variable rate of 2.50% tax free/2.25% AER*, which includes a 1% bonus until 21 July 2010. The rate then reverts to our standard variable rate, currently 1.50% AER/tax free variable, so the sooner you start saving, the longer you’ll benefit from the higher rate. You can save from as little as £100 – and top up your balance with one-off payments or regular savings from £25. You can also withdraw money anytime you like, without any penalty.

Fixed Rate Savings option

With a fixed rate Cash ISA your interest is guaranteed for 1, 2 or 3 years, even if rates fall. You can save between £500 and £3,600 each tax year – or up to £5,100 if you will be aged 50 or over on 5 April 2010. And if you need to access your savings, you can make a full withdrawal before the end of the fixed term. We charge a flat rate of £50 to withdraw from a 1 year bond, £75 from a 2 year bond and £100 from a 3 year bond. So you may get back less than you put in. Partial withdrawals are not permitted.

Split your savings

You can divide your tax free savings between the Advantage Cash ISA option and the Fixed Rate Savings Option. For example, if you deposit £2,000 in an Advantage Cash ISA option, you can save up to £1,600 in the Fixed Rate Savings Option in the same tax year. Or if you will be aged 50 or over on 5 April 2010, you have a higher ISA limit, so you could deposit £2,000 in an Advantage Cash ISA option and £3,100 in the Fixed Rate Savings Option in the same tax year. Both of these examples are provided you haven't opened another Cash ISA in the 09/10 tax year.

Transfer today

You can move the money you’ve saved in another Cash ISA into your M&S Cash ISA. There’s no limit on the amount you can transfer. For example, if you’ve got £18,000 in a Cash ISA with another provider, you can move the full amount into the M&S Cash ISA – and still save up to £3,600 (or up to £5,100 if you will be aged 50 or over on 5 April 2010) in the same tax year, assuming you haven't already saved anything in a Cash ISA in this tax year. Please note that you will be unable to switch any balance held in our Tracker Cash ISA option to the Advantage Cash ISA option.

Easy to open an account

You can open an M&S Cash ISA online, over the phone or by post.

Protect your savings

Saving in deposit accounts like an M&S Cash ISA is considered to be a safer option than investing in the stock market. In addition, the first £50,000 of the savings you hold with us is protected by the UK Financial Services Compensation Scheme - and because M&S Money is authorised by the Financial Services Authority in its own right, the savings you hold with M&S won't be affected by any money that you have elsewhere, including HSBC.

* 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. Variable interest rate correct as at 05/11/2009.

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