Only Fixed Rate Cash ISAs Available to New M&S Bank Customers

Written by Karen Bryan

British banknotesThe only M&S Bank Cash ISA accounts available to new customers are fixed rate accounts. The rates on offer are so low, 1.85% for one year,  1.95% for two years and 2.05% for three years, that I doubt if they’ll get many takers.

Halifax is currently paying 2.05% in its one year fixed rate Cash ISA & 2.30% on the two year account. BM is paying 2.8% on their three year fixed rate Cash ISA.

In the short term, the Coventry 60 Day Notice Cash ISA account guaranteeing to pay 2.8% until 31 December 2013, is looking like a better deal.

Existing M&S Cash ISA account holders may still add money to their Advantage Cash ISAs. This account is paying 2.75% until 5 March 2013, dropping to 2.25% on 6 March 2013.

The trend of falling interest rates on savings continues. It feels like banks don’t want your savings and are doing their best not to be at the top of best buy tables for too long.  It seems to me that this strategy allows banks to make more profit to pay back their debts and become profitable again. Savers are left wondering if it’s even worth saving when even tax free rates of interest on savings are lower than the rate of inflation.

Interest rates correct on 25 January 2013.