M&S 3 year Fixed ISA

Aidanmc

I've been looking at the M&S 3yr fixed ISA, going through the application it seem that one must pay in £500 min new subscription.

As i have already subscribed to an ISA this year, it doesn't seem possible to continue without breaking the isa rules.

Anyone see a way around this, is it possible to open without actually suscribing?

Albermarle

For most cash ISA's it is possible to open them with zero initial money, although they often ask if you have previously subscribed to a cash ISA this year, although that is not really relevant as long as you do not add any new money.
Maybe M& S is just different ?

Aidanmc

Just called them. If just looking to transfer in, need to fill out paper transfer form. No need to do online application

hamski

Did they say you could transfer online if you paid into this years isa.Have posted on this subject here 
https://forums.moneysavingexpert.com/discussion/401374/cash-isas-the-best-currently-available-list#latest
thanks

rallycurve

It seems they require any ISA transfers to be sent by post

Aidanmc

hamski said:

Did they say you could transfer online if you paid into this years isa.Have posted on this subject here 
https://forums.moneysavingexpert.com/discussion/401374/cash-isas-the-best-currently-available-list#latest
thanks

I didn't ask this, but it shouldn't be a problem

aaj123

I see this ISA being particularly attractive due to being fixed rate AND having an unusually mild exit penalty of just £100 for the 3 year version. Usually these penalties are several months worth of interest. 

So a good option for rate assurance and ability to switch if rates rise further. 

J63320

What do you make of this, from the Ts & Cs (the ‘Additional Terms’ at the end) : “Interest is paid annually, within 30 days of the anniversary of your bond opening, into your bond (unless you ask us to pay it to another account).” ?

If they’re not actually capitalising the interest annually, you could end up less than you expect because you miss out on some of the interest on the interest.

refluxer

J63320 said:

What do you make of this, from the Ts & Cs (the ‘Additional Terms’ at the end) : “Interest is paid annually, within 30 days of the anniversary of your bond opening, into your bond (unless you ask us to pay it to another account).” ?

If they’re not actually capitalising the interest annually, you could end up less than you expect because you miss out on some of the interest on the interest.

They're giving you the choice - you can either have interest paid away to a different account (in which case you'll just achieve the stated AER each year and the interest won't compound) or you can have it paid into the account, in which case it will compound and your overall return after the three years will be more than 4%.

35har1old

aaj123 said:

I see this ISA being particularly attractive due to being fixed rate AND having an unusually mild exit penalty of just £100 for the 3 year version. Usually these penalties are several months worth of interest. 

So a good option for rate assurance and ability to switch if rates rise further. 

Adds up to 46 days approx

aaj123

35har1old said:

aaj123 said:

I see this ISA being particularly attractive due to being fixed rate AND having an unusually mild exit penalty of just £100 for the 3 year version. Usually these penalties are several months worth of interest. 

So a good option for rate assurance and ability to switch if rates rise further. 

Adds up to 46 days approx

Less if you were planning to also transfer in deposits from previous years ISA.