M&S Cash ISA

Take advantage of this year's tax-free ISA allowance

Our features and benefits

  • Save with an M&S Cash ISA and split your existing and new ISA subscriptions between fixed and variable rates
  • M&S Cash ISA Fixed Rate option - earn between 3.75% AER/tax-free and 4.60% AER/tax-free with fixed rates over 1, 2 or 3 years
  • M&S Advantage Variable Rate option - earn 3.00% AER/tax-free (variable)

Please note that issue 51 of our M&S Fixed Rate Cash ISA option will close shortly and a new issue will launch on 19 July. As rates are decreasing you may wish to consider making your deposit before 19 July. There are no changes to the variable Cash ISA rate.

Apply for an M&S Cash ISA

The value of tax benefits provided by a cash ISA depends on your individual circumstances and tax rules could change in the future. Tax-free means free from personal liability to UK Income Tax and Capital Gains Tax.

Tax-free and easy

The overall ISA subscription limit is £20,000 for the current tax year, with a separate annual payment limit (currently £4000) that applies to Lifetime ISAs.

With M&S you can only subscribe to one M&S Cash ISA (this can be split across variable and fixed rate options) and one type of stocks and shares ISA in the same tax year.

Earn a fixed rate for 1, 2 or 3 years

With the fixed rate option, the interest you receive is fixed for 1, 2 or 3 years and you can start saving from £500. There is a charge if you withdraw your money before the end of the fixed term - please see details below.

Our Fixed Rate Savings are a limited offer, subject to availability.

1 year fixed rate 2 year fixed rate 3 year fixed rate
Interest (AER/Tax-Free) 4.60% 4.20% 3.75%
Early withdrawal charge see footnote* £50 £75 £100

*Partial withdrawals aren't permitted for the fixed rate cash ISAs.

Save at a variable rate

With the variable rate option, Advantage, you can dip into (or top up) your savings whenever you want, without any penalty. However, if you reach your full ISA allowance for the current tax year, any amount withdrawn can't be replaced during the same tax year.

Our Variable Rate Advantage ISA option

Balance Interest rate
All balances 3.00% AER/tax-free

Choose the option that's best for you

You can divide your tax-free savings between the variable and fixed rate options. For example, you could deposit £5,000 in the variable rate option and £15,000 in the fixed rate option in the same tax year.

Our ISA isn't a flexible cash ISA, so any amount withdrawn will not change how much of your annual ISA subscription limit you have already used. If you have fully subscribed, you will need to wait until the next tax year to subscribe further funds.

Benefits of transferring to an M&S Cash ISA

You can save up to £20,000 in the current tax year. In addition, we allow unlimited transfers from other ISA providers, so your savings can continue to grow tax-free. If you are depositing or transferring money into the Fixed Rate Savings option, each deposit or transfer will have a different start and maturity date.

There's no limit on the amount you can transfer. For example, if you've got £25,000 in an ISA with another provider, you can move all the money into your M&S Cash ISA - and still save up to £20,000 in the current tax year (as long as you haven't fully used your annual ISA allowance in the current tax year).

It's easy to transfer from another provider's ISA into the M&S Cash ISA. All you have to do is use one of the transfer forms below; complete it and send it back to us and we'll do the rest.

Transfer an existing cash ISA to the M&S Cash ISA (PDF document)(opens in a new window)

Transfer an existing stocks and shares ISA to the M&S Cash ISA (PDF document)(opens in a new window)

You may require Adobe PDF reader to view these documents. Download Adobe Reader (opens in a new window)

Once the transfer is complete, we'll let you know.

Where you are transferring in a stocks and shares ISA to a cash ISA, your stocks and shares ISA manager will, after receiving the instruction to transfer, sell your investments and make the transfer to us in cash.

The value of tax benefits provided by a cash ISA depend on individual circumstances and tax rules may change in the future.

Definitions

AER is the annual equivalent rate. This is the interest rate you'd get if interest was paid and added to your savings on an annual basis.

Tax-free means free from personal liability to UK Income Tax and Capital Gains Tax.

Interest will be credited to your account annually. Interest rates correct on 08.02.2024.