Santander rewards customers with Loyalty Tracker Bond

Santander can confirm the launch on the 2nd August 2010 of a new competitive product, Loyalty Tracker Bond (issue 1), paying 3.00 per cent gross AER and tracking 2.50% above the Bank of England base rate until 1 September 2011, available for customers that have their main current account, mortgage or investment account with Santander or open a new current account and switch through the Account Transfer Service.

Loyalty Tracker Bond offers savers a variable rate that tracks any changes in the Bank of England base rate, for a fixed one year term, meaning that if interest rates start to increase over the next 12 months customers will benefit from the increase.

The minimum investment is £10,000 up to a maximum of £100,000. No withdrawals are allowed during the term of the product.

Reza Attar-Zadeh, Director of Savings and Investments, said: "Loyalty Tracker Bond not only pays a great rate but also ensures that savers don't miss out on any changes in the Bank of England Base Rate over the next 12 months.  With continued speculation on when interest rates will start to rise, we believe this product offers savers the peace of mind that they're getting a competitive rate today and throughout the term of product.  This latest offering cements our continued approach of rewarding loyalty and that the more business you do with us, the more we will offer you in return."

Since 1 January 2010, Santander has rewarded customer loyalty in the following ways:

Launched the Santander Zero Current Account - for customers with an Abbey or Santander Mortgage who have or open their primary­ current account with Santander;

Made all 4,300 Santander ATMs in Spain free to use for all of Santander UK's current account customers;

Waived the 3 per cent balance transfer fee on the Zero Credit Card for all existing customers with a mortgage, current account or investment product with Santander or Alliance & Leicester;

Waived booking fees on mortgages for primary current account holders; and,

Extended the Zero Current Account availability to include all customers who have an investment product with Santander - meaning 2.5 million people are now eligible.

Introduced a 0 per cent balance transfer period of 13 months with no balance transfer fee for existing Santander current account, mortgage and investment account holders

Kept Flexible ISA on sale at the end of the Tax Year campaign for customers who have their main current account with us

Customers who open a qualifying investment product with Santander can also benefit from Super Tracker Bond (issue 1) with a higher rate of 4.50 per cent gross AER or for all other customers our standard Tracker Bond (issue 1) pays a competitive 2.80 per cent gross AER.  They are all available from a minimum of £10,000 up to a maximum of £100,000.