M&S Money ISA Paradox

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

Reply to
Vortex3
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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.

Reply to
Justin Cole

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

Reply to
David Woolley

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

Reply to
Tiddy Ogg

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

Reply to
mogga

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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Reply to
Gareth

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.

Reply to
Justin Cole

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