M&S Money launches 3% cash ISA
M&S Money has launched an Advantage Cash ISA paying 3 per cent, and which allows transfers in from other ISAs.
It can be opened with a minimum deposit of £100 lump sum followed by minimum monthly deposits of £25.
The 3% rate is variable, but there is no short-term bonus so the return won’t plummet after a few months and savers will be informed by post if the rate changes.
Fleur Carruthers, savings and investments manager at M&S Money said: “We hope that keeping Advantage Cash ISA simple will reassure customers that their tax-free money is in safe hands.
“We have handled thousands of ISA transfers from other providers in recent years, so customers can be confident that transferring their other ISAs to us will be simple and straightforward.”
An unlimited amount of withdrawals and top-ups are allowed, but once a saver reaches their annual deposit limit, withdrawals cannot be re-invested in an ISA.
Another new ISA coming onto the market is Lloyds TSB’s Junior Cash ISA which will be available from 13 February.
It will be offered at a tax free flat rate of 3 per cent AER, compared with the average rate currently available with Junior ISAs of 2.63 per cent.
Greg Coughlan, head of savings for Lloyds TSB, said: “The Junior ISA allows parents to set aside money throughout their child’s life in a tax efficient way, building that all important nest egg which could either help fund their university education or help them take that first step on the property ladder.”
“We are delighted to be the first of the major high street banks to announce such an account for customers.”
The Junior ISA locks away savings until the child turns 18 and will then mature into an Adult Cash ISA.