Santander offers savers new accounts with interest rates up to 4.25%

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

Santander has launched a range of ISA products in an effort to give savers “greater returns”. As the end of the tax year approaches, people may be wondering what ISA accounts are worth considering.

Santander’s new ISA range includes:

  • eISA (Issue 18) – 3.2 percent AER/tax-free (variable)
  • One Year Fixed Rate ISA – 4.15 percent AER/tax-free (fixed)
  • 18 Month Fixed Rate ISA – 4.25 percent AER/tax-free (fixed)
  • Two-Year Fixed Rate ISA – 4.20 percent AER/tax-free (fixed).

These accounts also typically offer some of the highest interest rates on the market.

However, it should be noted they can come with a few more restrictions, like penalty charges for early access or transfers.

Commenting on the range, Andrea Melville, managing director of retail finance at Santander UK, said: “An ISA helps customers save for the future completely tax-free and with the new tax year approaching, we have boosted our ISA rates to give our customers greater returns.

READ MORE: Amazon’s 3-day sale is now on – top deals on electronics, home and fashion

“On top of this, customers can benefit from our voucher offer to treat themselves this spring.”

The ISA allowance for the 2022/23 tax year is £20,000 and deposits can be made up to and including April 5, 2023.

The tax year will renew on April 6, after which the £20,000 ISA allowance will restart too, but savers are being urged to make the most of the allowance sooner rather than later.

New and existing customers who transfer an ISA of at least £10,000 from another provider into a Santander Fixed Rate ISA will benefit from £50 cashback as an e-voucher, which can be spent at over 100 outlets, including restaurants, supermarkets, clothes stores, and subscription services.

Don’t miss…
Nationwide Building Society cuts mortgage rates despite BoE rate rise [LATEST]
Successful The Apprentice star set to turn over £3million [LATEST]
Yorkshire Building Society increases interest rates for savers [LATEST]

Santander has now launched issue 18 of its e-Isa at a top variable rate of 3.2 percent.

However, this rate only lasts for a year after which their money is transferred into the bank’s Isa Saver which pays just 0.6 percent.

Their fixed-rate ISAs are offered for one year, 18-months, or two-year fix.

Savers must also deposit at least £500. Interest is calculated daily and paid annually or at maturity, and the maximum balance at any time is £2million.

Unlike the eISA, partial withdrawals aren’t allowed. People can withdraw money from this account early by closing it, however, there will be a penalty equivalent to 120 days’ interest if this takes place.

Lucinda O’Brien,’s savings expert, discussed which accounts savers should rush to take advantage of in particular.

She explained: “The new tax year is nearly here and we’ve seen some ISA deals come through from providers.

“Santander is currently offering the top rates for a one-year fixed-term ISA at 4.15 percent and its 18 months offering is at a competitive 4.25 percent.

“The bank is also offering a £50 voucher if someone transfers a non-Santander ISA of £10,000 or more to one of its fixed-rate ISAs.”

Interest rates in the UK have risen dramatically over the past year as the Bank of England attempts to rein in inflation.

With CPI inflation rising once again in the 12 months to February 2023, more rate hikes may be implemented in the near future.

Britons are encouraged to shop around and find the best deal for them on their savings as interest rates are increasing.

Halifax launched a new fixed-rate ISA paying 3.9 percent for one year and four percent for two years.

Both are available online or through its branches.

Cynergy Bank has also raised the rate on its Online ISA issue 32 to 3.2 percent while Marcus Cash ISA rate has risen to three percent including a 0.25 point bonus for a year.

Source: Read Full Article