Marks & Spencer offers 6% interest to attract customers
The battle to woo current account customers has intensified as Marks & Spencer is offering people who bank with it the opportunity to earn 6% interest by opening a linked savings account.
From tomorrow, holders of M&S's "free" current accounts will be offered access to a separate monthly savings account with a rate of 6% AER (annual equivalent rate), fixed for 12 months.
The M&S Current Account Monthly Saver requires customers to commit to put away between £25 and £250 a month, with payments being made by standing order from their M&S current account. Doing this would enable a saver to earn a maximum of £96 over a 12-month period before tax.
The savings account does not allow withdrawals. Savers will be able to access their money once the 12-month period has finished and they can then start another 12-month savings account if they wish to.