Santander Loyalty Tracker Bond & Tracker Bond new issue

Santander is launching new issues of its competitive Loyalty Tracker Bond (Issue 2) and Tracker Bond (Issue 2), now paying 3.25 per cent and 3.00 per cent gross AER respectively.  The accounts track any changes in the Bank of England base rate until 1 October 2011, meaning that if interest rates start to rise over the next 12 months, customers will benefit from the increase. 

Loyalty Tracker Bond pays an enhanced rate available to customers that have their main current account, mortgage or investment account with Santander or switch their current account to Santander using the Account Transfer Service.

Both accounts are available for savings from £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: "With ongoing speculation on when interest rates will start to rise, our Tracker bonds have been specifically designed to provide an assured return to savers: offering not only a great rate now but also ensuring savers don't miss out on any changes in the Bank of England Base Rate over the term.  These latest offerings continue to cement our approach of rewarding loyalty, so 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

A Super Tracker Bond (Issue 2) with a higher rate of 4.50 per cent gross AER is also available for those who pay in the same amount or more in a qualifying investment product.