M&S Money 4% ISA

violetta

Old_Slaphead wrote: »

I was told that in February, they're going to offer a variable rate ISA with an element of guaranteed bonus (first year only) paying a total of around 2.8%.

I had a phone call from M&S yesterday regarding an ISA top up I was making, and maybe deferring the top up so it could go into the new higher rate ISA they are introducing, all under the same customer number as discussed a few posts ago.

She said the new ISA was to be introduced on 9th February at an interest rate of 2.65% which includes a 1.25% bonus for eighteen months after the date of the first deposit.

savit4l8er

davidhwdn wrote: »

halifax 4.25% isa

The point of the M&S isa is the easy get out despite the "trickery". It depends how much you have invested but the Halifax is a massive 180 days loss of interest, that is pretty steep and I reckon anyone going for the M&S isa will be trying to avoid such penalties.

Stompa

savit4l8er wrote: »

The point of the M&S isa is the easy get out despite the "trickery". It depends how much you have invested but the Halifax is a massive 180 days loss of interest, that is pretty steep and I reckon anyone going for the M&S isa will be trying to avoid such penalties.

And the Halifax is only 4.25% for a 4 year fix. For 3 years it's 3.75%.

Porcupine

M&S have capitulated in response to my complaint. More details when I get home and can type up the letter.

Porcupine

M&S_Money wrote:

Dear Porcupine

I write further to your telephone conversation with my colleague XXXXX on 25 January 2010, concerning your Fixed Rate Savings ISA.

I apologise that you have had occasion to contact us and complain regarding the two separate Fixed Rate Savings ISA portfolios.

I would like to take this opportunity to explain why you have two separate portfolios, and how we can arrange an amalgamation of them should you request it.

We have received two separate deposits from you; firstly an initial deposit of £3600.00 received by cheque payment on 15 December 2009. With this application we received a request to transfer existing funds from XXXX to M&S Money.

With the initial £3600.00 deposit, a portfolio was created on 15 December 2009 with a maturity date of 17 December 2012 to ensure that interest is paid from accoumt opening to maturity date (Or early closure date if applicable).

With regards to the transferred funds (totalling £XXX), we are not in control of when we receive the funds as we request the transfer from the existing provider, and they have up to 30 days to release the proceeds of the transfer to us.

Once the funds are received by M&S Money we set up a new portfolio paying interest from the date received. We cannot backdate a transfer portfolio as regulations state that two ISA managers cannot pay interest on funds at any one time. Therefore, your portfolio was set up with an opening date of 8 January 2010 and a maturity date of 8 January 2013.

As your initial deposit of £3600.00 is outside of the 30 day cancellation period, the option we have now is to amalgamate the two portfolios so there will be a start date of 8 January 2010, and a maturity date of 8 January 2013. If you wish to proceed with the amalgamation, please confirm this in writing.

However, if you wish to keep the £3600.00 and cancel the transfer, your 30 day cancellation period for this expires on 8 Feburary 2010.

We take your complaint very seriously, etc, etc

And I even make an extra month's interest on £3600, ooh about £3 more than my savings account :rotfl:

bandana999

Well Done:beer:

Porcupine

A couple of people have PMed to say they have been in contact with M&S and were told different things to what they told me.

I've just had a phone call from M&S to say they've been reviewing this week's complaints, and weren't happy about the way mine had been dealt with. They can't amalgamate the ISAs as apparently that would mean that they would have to credit my 2009-10 ISA with the interest received so far, which is not allowed (don't quite understand the logic, but anyway). They've now changed to offering to keep the two accounts as they stand, but they'll put a note on the account to say if I withdraw both together they'll only charge me one withdrawal fee. I'm happy with that.

Ah well, it was a nice £3 while it lasted :rotfl:

bandana999

Porcupine wrote: »

A couple of people have PMed to say they have been in contact with M&S and were told different things to what they told me.

I've just had a phone call from M&S to say they've been reviewing this week's complaints, and weren't happy about the way mine had been dealt with. They can't amalgamate the ISAs as apparently that would mean that they would have to credit my 2009-10 ISA with the interest received so far, which is not allowed (don't quite understand the logic, but anyway). They've now changed to offering to keep the two accounts as they stand, but they'll put a note on the account to say if I withdraw both together they'll only charge me one withdrawal fee. I'm happy with that.

Ah well, it was a nice £3 while it lasted :rotfl:

Looks like the drinks aren't on you after all then :beer:

That solution is fine tho'- it's what they should have done in the first place IMHO.
The main thing is that at least they listened to their customers, and then tried their best to make everyone happy.
I would say, "Well done M&S!" :T

steveksullivan

Have read all the horror stories on here regarding second ISA accounts being created, but for a 'simple' trannsfer in with no 'new' money this would still seem to be far and away the best ISA for anyone with more than about 8K

(which I calculate to be the break point between this account with its £100 penalty and the best instant access accounts at circa 2.75%)

i.e treating this account as a 1 yr account at 4% and paying the £100 at the end of the first year if better rates are around.

Anything I've missed or any other horror stories?

Porcupine

I think you're right. I haven't checked your calculation, but I posted the breakeven points upthread for various amounts compared to the then-top instant access rate of 3%. Essentially you need to keep your cash in for a number of months to beat the top instant access rate... you take the risk that rates might rise for that period, but if they don't then you've won. If rates go up seriously far in the breakeven period (yeah, right) then you can escape.

I wouldn't worry too much about the horror stories... M&S didn't think their advertising through. They seem to be reasonably good at sorting things when this was pointed out.

If you want to take it up, do so ASAP as they have a new range of ISAs coming out this month. My guess would be they won't be such a good deal.