M&S Money cuts ISA interest rate

M&S Money has reduced the interest rate on its variable Cash ISA following the Bank of England’s 0.5% base rate cut.

Cash ISA account holders will now be paid 2% interest, down from 2.5%.

In December, M&S Money reduced the variable cash ISA rate by only 0.5% rather than matching the Bank of England’s 1.0% base rate cut.

The bank, which is the financial services of retail group Marks & Spencer, also issued a guarantee that its Cash ISA rate would at least match the Bank of England’s base rate until January 2010.

At the same time as announcing the cut, M&S Money unveiled a new range of fixed-rate savings accounts, with interest rates of up to 3.25% over a three-year period.

The Bank of England’s base rate currently stands at 1.5% following a 3% reduction in three months.

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