Santander’s UK savings brands launch new range of cash ISAs

This week, Santander's UK savings brands kick start the ISA season with a new selection of ISAs to suit every saver's needs. With standard rates of up to 3.50 per cent available, savers have the opportunity to earn 2.5 per cent above the current Bank of England base rate.

From today savers can open our new Reward ISA, an instant access rate of 1.50 per cent plus an added 2 per cent bonus at the end of the first year provided if you leave your savings untouched. This offers customers a current rate of 3.50 per cent AER tax free. The opening balance is £1 up to £3,600 in each tax year, and is available for new ISA subscriptions only.

For any ISA saver looking to transfer existing ISA money, our Direct ISA offers the convenience of opening in branch and a preferential rate of 2.50 per cent variable for the first 12 months, after which a variable, tiered rate will apply depending on the balance of the account.

Reza Attar-Zadeh, Director of Savings and Investments said: "It's vital that taxpayers understand the benefits of saving in an ISA and how to make the most of their allowance; as un-utilised allowances are lost forever. Even in the current low interest rate environment the long term benefits of holding money in a tax free account remain the same as always. For example, a lower rate taxpayer would have to find a standard savings account paying 4.37 per cent gross to get the same return as 3.50 per cent tax free on our Reward ISA"

Reza Attar-Zadeh continues: "Arguably, it's never been so important to use all the available tax free allowances in order to maximise returns. Those savers already ahead of the game and have used up their cash ISA allowance shouldn't forget about their Stocks and Shares ISA allowance"

For savers looking for the opportunity of even greater returns, our Super Direct ISA offers a competitive 5.50 per cent variable for the first 12 months. In order to benefit from our highest ISA interest rate savers must be able to put the same amount or more into an Abbey capital guaranteed investment or qualifying investment at the same time. The minimum opening balance is £1 with transfers in accepted.

For more information or to apply customers can visit their local Abbey, Alliance & Leicester or Bradford & Bingley branch.