One personal and business bank account provider has recently announced it is offering a new 3 per cent cash ISA that will allow transfers in from existing savings pots, experts say.
The new cash ISA from M&S Money, which requires a minimum £100 deposit followed by a minumum monthly deposit of £25, boasts a 3 per cent variable interest rate. However, savers will be given notice by post in the event of a rate change, and the account carries no short-term bonus, which means that the rate will not drop precipitously after a few short months.
M&S Money’s savings and investments manager, Fleur Carruthers, commented on the new deal, stating that the bank hopes to provide reassurance to their customers that their investments are in capable hands. M&S Money has handled countless thousands of transfers from other banking providers over the past few years, Ms Carruthers added, which means savers can have confidence in transferring their existing ISA pots in a simple and straightforward manner.
The M&S Money offering has no limit on the number of withdrawals savers can make from the account, nore are there any upward limits on the number of top-ups permitted. However, once an account holder meets their annual deposit limit, they cannot re-invest withdrawals into another ISA.
In related news, a new Junior Cash ISA is being offered by Lloyds TSB from 13 February, with a flat tax free rate of 3 per cent, which compares favourably with the current 2.63 per cent Junior ISA average. Designed to provide tax free savings for children, the Junior ISA keeps deposits safe until the child turns 18 years of age, where it then matures into an adult ISA.