M&S Bank has revamped its regular savings account with a 6% in-credit interest rate, but is it any good?
The High Rate Monthly Saver offers the highest interest rate on the market, alongside regulars savers account from HSBC and First Direct, all offering 6%.
The account is now available to all M&S current account customers and requires you to commit to paying in between £25 and £250 every month. Making the maximum deposit into the account each month can earn you over £97 interest in a year.
Partial withdrawals are not permitted with the account. However, if you save less than £250 in any given month, you can carry the allowance over to a later month.
Previously, this account was only available to customers of the £10 a month M&S Premium Current Account, but as of yesterday it is now open to customers of the fee-free current account.
Which? Money Compare Table: Regular savings accounts – see how this account compares
Regular Savers Accounts from HSBC and First Direct
To qualify for HSBC’s 6% paying account, you must be either an HSBC Premier account holder or hold the Advance account, while for First Direct you must be a 1st Account holder.
HSBC’s account also allows customers to pay in between £25 and £250 a month. First Direct’s Regular Savers account allows customers to pay in a slightly higher £300 a month into the account, which can work out to a higher £117 interest before tax.
M&S Bank current account features
M&S Bank currently offers two current accounts – a standard fee-free account and a Premium account which costs £10 a month. Customers can also add worldwide multi-trip family travel insurance to the Premium account at a monthly cost of £17.50.
Both accounts allow customers to collect M&S Loyalty points on debit card spend, with the Premier account offering additional loyalty based perks.
Each account also comes with a £500 automatic overdraft, with £100 interest-free and the remainder charged at 15.9% EAR.
M&S also does not charge customers to make cash withdrawals abroad, though there is a 2.75% foreign loading fee levied on all transactions.
As far as customer service goes, M&S Bank come out reasonably well in our latest current account customer satisfaction survey with a 68% customer score.
- Call the Which? Money Helpline – for any questions on your savings
- Fixed rate Isa top-up deadlines – for provider rules on topping up your Isa
- How to find the best cash Isa – maximise your tax-free savings allowance
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