can someone help me pick a cash isa please?

Desperate_Housewife_2-2

Hi, I am looking around for a cash isa to put away 500 quid a month until retirement between me and hubby. I was looking at the marks and spencer isa as it seems like a good rate. Does anyone have any experience of them? Also, does anyone know which bank it is (I suppose M&S are the front men) and is it guarenteed by the ombudsman?
many thanks

glider3560

£500 x 12 months = £6000 which is more than your annual ISA allowance.

M&S_Website wrote:

Marks & Spencer Money and Your M&S are trading names of Marks & Spencer Financial Services plc.


Registered in England No: 1772585. Registered Office: Kings Meadow, Chester CH99 9FB. Authorised and regulated by the Financial Services Authority. A wholly owned subsidiary of HSBC Bank plc.

M&S_Website wrote:

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 Marks & Spencer Financial Services plc (which trades as 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.

matimage

I have just applied for the first direct one which is a best buy on here if thats any help.
Just make sure you transfer it in a years time.

lisyloo

£500 x 12 months = £6000 which is more than your annual ISA allowance.

But it's fine for 2 people.

We have first direct at 3% fixed until 9/10/10.
But if better rates are avialble elsewhere then we can Xfer before.
Only think is you have to remember to xfer becuase after that date it goes to 0.2%.

I have all my dates together in one xsheet with car tax, ins etc. so all impportant dates are in one place.

What are M&S paying?

lisyloo

If you mean the 4% for 3 years, then yes it seems a good rate right now but remember that it won't go up when others are likely to rise over the 3 years.
I'm afraid I have no idea whether it will be best over 3 years, but I'm not prepared to be tied in for that long, so there is a risk it won't be the best deal.
On the other hand you won't have to xfer and with FD you have to xfer next year and lose a few days interest whilst it's "in the post".

Desperate_Housewife_2-2

thanks for the input, I have decided to go for the first direct isa as I take your point about being tied in and will transfer after a year.

Thank you!

lisyloo

Do it a few weeks beforehand.
ISA transfers can take a few weeks, so you need to allow for that, otherwise you'll get the low rate.