M&S Bank

Who they are

M&S Bank was founded in 1985 - originally as St Michael Financial Services - and adopted its current name in 2012. It operates as a division of HSBC UK Bank plc , combining the trust of the M&S brand with the infrastructure of one of the UK's largest banks. Following the closure of its current accounts, M&S Bank pivoted its focus to credit cards, insurance, savings, and loans. It is a fully online savings proposition - there are no current accounts to open here, so it suits savers who simply want a home for their money rather than a full banking relationship.

Savings accounts

M&S Bank's savings range covers fixed-rate bonds, fixed-rate Cash ISAs, and one variable easy access option. The fixed-rate Cash ISAs run at 4.10% for one year, 4.15% for two years, and 4.15% for three years, each requiring a minimum of £500. Early withdrawals on those accounts come with a fee, so they work best if you are confident you can leave the money alone. On the taxable side, the fixed bonds run at 3.85% for one year, 4.05% for two years, and 4.00% for three years - again with a £500 minimum and no access until maturity. There is also a variable Cash ISA option at 2.30% with instant access from just £1, and an everyday easy access account at 1.05% with no minimum balance. That easy access rate sits notably below the fixed options, so it is worth weighing whether locking away some savings makes sense for you. All rates are variable unless described as fixed, and fixed rates are guaranteed only for the term stated - always check the live figures on this page.

FSCS protection - an important note

M&S Bank is a trading name of HSBC UK Bank plc (FCA firm reference 765112). That matters for deposit protection: your savings are covered by the FSCS up to £120,000 per person, but that allowance is shared across all brands on the same licence. If you already hold money with HSBC or first direct, your combined deposits across all three brands count toward a single £120,000 limit - not three separate ones. Joint accounts get £240,000 between two people.

Is it right for you?

M&S Bank makes most sense for savers who want a competitive fixed rate in a familiar, trusted brand - particularly its Cash ISA range, which is worth a look if you have unused ISA allowance to shelter. The easy access rate is less compelling against the wider market, so active savers may want to use that account only as a temporary parking spot. Bear in mind the shared FSCS licence with HSBC and first direct if you bank with either of those already. As always, rates move, so use the live figures shown on this page to compare before you decide.