M&S Bank recently shook the current account market with the launch of its new monthly savings account which offers customers a highly generous 6% fixed rate interest on their balance.
Coming attached with no monthly fee, the account has a max monthly savings allowance of £250, yielding gross annual earnings of roughly £96. If for whatever reason you choose to invest less than £250 a month, the remaining balance will be carried over to the following months until the end of the year.
However, savers wonít be able to dip in and out of their savings over the course of the year, with the complete amount needing to be taken out if an individual seeks to gain access to their cash. This could also jeopardise any interest accrued up until the point of withdrawal.
M&S Bank has been seeking to make an indent into the market share of Britainís larger lenders since its inauguration last year, and their 6% savings account yields the 3rd highest amount of interest on £3000 current accounts, after Nationwideís FlexDirect and TSBís Classic Plus. However, these two come attached with unattractive stipulations, with the former slumping to 1% interest after the year-long promotional period concludes and the latter charging exorbitant costs for overdraft facilities.
Sue Fox, chief of M&S Bank, said: ‘The M&S current account has proven incredibly popular since its launch last year and we want to ensure that our customers can come to us for all of their everyday banking needs.
‘So, in addition to some of the most competitive loan and credit card rates on the market, we’re delighted to be able to offer all our current account customers access to an exclusive high rate monthly savings account.’
M&S Bank recently received a 68% customer satisfaction score in consumer group Which?ís latest current account customer satisfaction survey.
M&S current account holders can, like other large retailers Sainsburys and Tescos, amass loyalty points through shopping in M&S with their debit card and are also entitled to a £100 M&S gift voucher upon switching.
Another attractive facet of choosing M&S is there flexible hours, remaining open on the weekends and past traditional high street bank closing times.
Andrew Haggar, of website Moneycomms, said: ‘The no fee, no minimum funding M&S Bank current account was well received when it launched last May and with its competitive overdraft tariff and no charges for overseas ATM withdrawals was considered to be a decent all round account.î