M&S ISA

isasmurf

isasmurf wrote:

The M&S ISA is a good case in point - guaranteed not to be less than 0.25% above BoE base rate (which means the guaranteed rate is 5% at the moment), but the interest rate is currently 5.25%, so beating their own guarantee.

Happy now?

david78

The rate has dropped to 5% from today.

david78

With effect from today.

Kazza242

I figured they would do this sooner or later. I guess they delayed reducing the rate - in line with their guarantee, because they wanted to see whether BOE base rate would rise in May. As this didn't happen (even though many economists predicted it would) M&S Money (HSBC) have decided now is the time to change the rate. I suspect they also picked this month to reduce it, to ensure that customers plonked their 2005/06 £3,000 allowance into M&S Money. Still, 5% isn't bad.

isasmurf

Even at 5% it's still one of the best instant access ISAs out there and there certainly shouldn't be any rush to move away from it. I've been trying to see what better instant access ISAs are around at the moment and I've only come up with a handful offering only a slightly better interest rate which I'll list in a separate thread.