M&S Cash Isa

dwforum

Hi,

First time poster, please be gentle!

Letter arrived from M&S yesterday dropping the cash ISA rate from 2.75% to 1.3%. I know rates are poor, but this is an insult. I called them to see if they can offer better rates by fixing for 3 years. 1.85% would be the rate. Given that Halifax are offering 3.00% for 3 years then I'm getting the message that M&S simply can't be bothered with the inconvenience of servicing customer accounts any longer. The letter made it very clear that I have the option of transferring elsewhere.

I'm reluctant to make a hasty change as they've been pretty good over a 10 year period, but this seems a distinct change in stance designed to force me to move elsewhere.

Thoughts?

Stompa

Transfer elsewhere, I have.

penrhyn

First Direct are 3% for £40K, instant access no bonus. But look at Martin's guide.
Santander are bringing out their new ISA range tomorrow.

innovate

By far the best and most up-to-date cash ISA guide is Kazza's thread (first post): https://forums.moneysavingexpert.com/discussion/401374

penrhyn

Thats the mother of all threads, off to read up. Cheers:beer:

innovate

no, don't read through all of it - - it's years and years of info, a lot of which is no use now. Just look at the first post - Kazza maintains that with up-to-date data. And may be the last dozen or so of the most recent posts. Ignore the rest (unless you like to depress yourself with interest rates available in 2007.....)

mulronie

dwforum wrote: »

I'm getting the message that M&S simply can't be bothered with the inconvenience of servicing customer accounts any longer

.....

this seems a distinct change in stance designed to force me to move elsewhere.

Don't take it so personally.

Simply put, HSBC (who sit behind M&S) don't need your money as much as Halifax do, hence why they're offering you a lower rate.

It's not personal; it's business.

SallySunshine

We have both large amounts in M&S 3yr ISA's which mature the second week in April, I was really hoping they would at least offer 3%.

not really sure what to do now, Halifax is o.K. at 3% but there is a years interest penalty for early closure, whereas M&S was only £100. not that I ever used it but still.

Could transfer to Halifax now I suppose but then what would happen to 2013/2014 ISA allowance? If is a fixed ISA I couldn't add to it so would have to look elsewhere, also have 2 yrs worth in Cheshire fixed rate until this October.

Bad timing really as we will be abroad when M&S ISA's mature, so really need to work something out soon.

apt

There would be nothing stopping you opening another Halifax 3 year 3% ISA with your 2013/14 money.

innovate

You don't need to be in the country on the date you want to transfer your ISA. Every ISA transfer form allows you to specify a "not before" date for the transfer, but you can send the form to your new provider at any time, and from anywhere in the world.

If you choose the 3-year Halifax one, you should be able to also pay in a lumpsum of £5,760 alongside the transfer (but confirm this with them). If not, there are other instant access ISAs you can use. Max interest rate is somewhat below 3% for instant access ones, though.

You haven't specified how much you have in your ISAs - if you get over £40K, there's always the First Direct instant access one @ 3%. Also worth keeping an eye on Kazza's thread over the next few weeks. https://forums.moneysavingexpert.com/discussion/401374

VfM4meplse

Stompa wrote: »

Transfer elsewhere, I have.

Me too. I did it as soon as it expired last month - into the FD ISA. There's no fixed period and apparently it has been 3% on balances over £40k since Jan 12; if the rate drops I'll have to look elsewhere but I doubt I would get any better.