M&S Money ISA Paradox

Feb 22, 2009 6 Replies
V

Hello,



I have had an M&S Money Tracker cash ISA for 3 years or so, with a value of about £3800 on the last statement.



I had some propaganda through the mail this week saying the interest rate on this is now 1%.



In the same letter they are advocating a new "Advantage Cash ISA" offering a



3.1% bonus rate for incoming cash transfers from other ISA's. With the statement: "Please note you will be unable to switch any balance held in our Tracker Cash ISA option to the new Advantage Cash ISA option".

Is this genuine?



I find it so unbelievable that they would explicitly stitch up their own customers, whilst offering premium rates for "new money" that I am now completely determined to move this money to another provider.


david



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J

Yup, oldest trick in the book...

Not at all. Most customers probably won't even move their money...

If this is a good deal, then transfer out and then back in again.

Justin.

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D

I find it very believable, and pretty much what one would expect for a promotion intended to get new customers.

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T

You'll find the same sort of customer abuse everywhere.

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M

But if you've topped it up this year you can't top an isa up again until April?

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G

It's quite normal for banks (and other service providers) to offer better rates to attract new customers.

I have found that to get a good rate on a cash ISA it is necessary to move it regularly. For the best rates available at the moment have a look at:

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J

You can move ISA's from one provider to another for a given tax year. So if you have 3,000 from the 2004/5 tax year earning diddly-squat then you can transfer that cash for that tax year to another provider. It must be a 'transfer' and not a withdrawal/reinvestment.

However, watch out for penalty clauses or fees for transfers...

Justin.

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