ISA’s at Marks and Spencer Money (M&S Money)

ISA’s at Marks and Spencer Money (M&S Money) February 23

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Marks and Spencer Money (M&S Money) currently offers savers three types of ISA’s: a mini cash ISA; a mini stocks and shares ISA; and a maxi ISA. Up to £3,000 in cash can be invested in a mini cash ISA; while a combination of cash and shares can be deposited in a maxi ISA up to a value of £7,000 - although only up to £3,000 can be invested in cash. For maxi ISA’s and stocks and shares mini ISA’s, money can be invested in one or more of M&S Money’s five trust funds.

It should be known that it is not possible to subscribe in the same tax year to a maxi ISA and a mini ISA, more than one mini ISA of the same type, or more than one maxi ISA. M&S Money also stresses that although stocks and shares ISA’s offer the prospect of large returns, there is risk involved and it is possible that any initial investment may not grow and might even become devalued. ISA’s are a medium to long term investment, with a recommended investment period of 5 years.

Mini cash ISA

M&S Money’s mini cash ISA offers a service akin to a bank or building society, although with a more competitive interest rate. The money will also remain free of all forms of taxation. The interest rate is fixed at 5.25 per cent AER, although M&S Money also guarantees that the rate will stay at least equal to the Bank of England’s (BoE) base rate until December 31st 2007, with increases being made within five days of any BoE base rate change. As little as £10 can be invested, and money is accessible - free of charge - at any time. There are no set-up, administrative or closing fees.

Stocks and shares mini ISA and maxi ISA stocks and shares funds:

Ethical fund

The objective of the ethical fund is to provide investors with long term capital growth by investing in predominantly UK companies that meet the social, environmental and ethical criteria defined in the investment policy. The fund is actively managed, and comes with an annual charge of 1.5 per cent, with an initial one per cent charge also payable. There is no exit fee.

UK 100 Companies Fund

For the UK 100 companies fund, fund managers attempt to provide long-term capital growth by matching the performance of the FTSE 100 Index as closely as practically possible. Although there are no initial charges or exit fees, an annual charge of one per cent is payable by necessity.

High Income Fund

The High Income Fund aims to provide, rather predictably, a high level of income return on investment. To do this, the fund manager will invest in fixed and variable rate securities and equities from around in the world. The only fee payable is an annual charge of one per cent.

Worldwide Managed Fund

For the Worldwide managed fund, which is “actively managed”, investment is made in UK fixed interest stocks, UK and overseas equities, and other securities. It is hoped that it will secure long term capital growth, as well as a reasonable yield. There is an initial charge of three per cent, and an annual charge of 1.5 per cent, but no exit fee.

UK Selection Portfolio Fund

The UK Selection Portfolio Fund aims for an above average yield and long term capital growth by investing in UK equities and UK convertible stocks. It is actively managed, and carries an initial charge of three per cent, and an annual charge of 1.5 per cent. Once again, no exit fees are payable.

Written Exclusively by AdFero for ISA Guides

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