Should i transfer my M&S Cash ISA?

mike_riley · 25 February 2006 at 9:42PM

I have a monthly direct debit into a M&S cash ISA and have saved approx £2.5k over the last few years. M&S interest rate is currently around 4.25% (i think). Now I'm sure there are better rates out there with other providers. Should i transfer it to someone else and if so, will it make any difference whether i do it before or after beginning of April? (i still intend on keeping up with the direct debit payments) Does anyone know if M&S impose a transfer charge? How would i go about making the transfer - will the new ISA provider handle this for me?

thanks in advance
Mike

ManAtHome · 25 February 2006 at 11:04PM

Currently 4.75%, but the '0.25% above base rate' guarantee runs out in April (I'm waiting to see where they go).

ps - no transfer fees. if you want to move, fill in a transfer form from the provider you wish to switch to and they will 'pull' the cash over.

pennies2pounds_3 · 26 February 2006 at 2:56AM

A & L are 5.2% at the moment and that is guaranteed until next april . hope this helps .

YorkshireBoy · 26 February 2006 at 11:55AM

pennies2pounds wrote:

A & L are 5.2% at the moment and that is guaranteed until next april

Sadly, only the 0.70% bonus is guaranteed until 30/4/07. The underlying 4.50% rate is VARIABLE.

mike_riley · 26 February 2006 at 3:00PM

Thanks for the feedback guys. Think for the sake of a month it's worth waiting to see what M&S do after this point when the '0.25% above base rate' runs out? I'm guessing by this time someone else other than A&L may be offering something even more competitive. If not then transfer to A&L to get a years worth of interest more than what I'm currently getting from M&S? Need to do the maths to see if it will be still be worth it though taking into account the week or 2 whilst the money is not earning interest and being transferred (or has anyone already consdiered this before?)

ManAtHome · 26 February 2006 at 6:02PM

On £3k at 5.2% (convenient interest rate!), your weekly interest (potentially lost) will be £3. An extra 0.25% will gain £7.50 a year in interest. I know it's better in your pocket, but sometimes it may not be really worth it...

sly_dog_jonah · 6 March 2006 at 12:06PM

To avoid cross-posting...M&S speedy to respond to my transfer request to A&L

Sazbo · 8 March 2006 at 1:56PM

Hi mike - for your info, I spoke to someone at M&S CS the other day about their mini cash isa and she said that while she "didn't know" when/whether the base rate +0.25% deal would end, M&S has to give us at least 30 days' notice of their intention to end it... so does that mean we can at least assume it won't be ending at the start of the next tax year?

Kazza242 · 21 March 2006 at 9:35PM

ManAtHome wrote:

Currently 4.75%, but the '0.25% above base rate' guarantee runs out in April (I'm waiting to see where they go).

ps - no transfer fees. if you want to move, fill in a transfer form from the provider you wish to switch to and they will 'pull' the cash over.

mike_riley wrote:

Thanks for the feedback guys. Think for the sake of a month it's worth waiting to see what M&S do after this point when the '0.25% above base rate' runs out? I'm guessing by this time someone else other than A&L may be offering something even more competitive. If not then transfer to A&L to get a years worth of interest more than what I'm currently getting from M&S? Need to do the maths to see if it will be still be worth it though taking into account the week or 2 whilst the money is not earning interest and being transferred (or has anyone already consdiered this before?)

I also have an M&S mini cash isa. I checked the M&S website today and they have now changed their guarantee:

"4.75% AER/tax free*
We guarantee that our interest rate will stay at least equal to the Bank of England Base Rate until 31 December 2007"

M&S ISA webpage

So I translate that as: "We'll keep our rate at 4.75% to get as much business in for this next tax year (Apr 6th 2006) and then we'll drop our rate to 4.5% or whatever BOE base rate is in late-May to early June".

As it's only a matter of time before the M&S' rate drops to 4.5%, I think I'm going to open a cash isa with another provider this April. Possibly the Halifax Saver Direct at 5%. Apparently the Scarborough BS will be launching a 1-year fixed rate isa at 5.05%. That's worth a look too.

Should i transfer my M&S Cash ISA?

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