Santander Flexible ISA Issue 3 and Loyalty Flexible ISA

Santander has launched its new market leading penalty free instant access ISA, Flexible ISA Issue 3. Paying 2.85 per cent it enables savers to access one of the best variable rate ISA rates on the market. The account will continue to allow penalty free instant access on withdrawals, so savers have the peace of mind of a minimum guaranteed rate but with the flexibility of instant access.

The new Flexible ISA Issue 3 offers savers a variable rate that tracks any changes in the Bank of England base rate for 12 months meaning that if interest rates start to increase over the next 12 months customers will benefit from the increase.  Flexible ISA Issue 3 also offers a rate guarantee for 12 months meaning the rate will never drop below the initial rate of 2.85 per cent during the first 12 months. It is available from a minimum of £1 up to a maximum of £5,100.

Santander is also launching Loyalty Flexible ISA (issue 1), paying 3.00 per cent gross AER and tracking 2.50% above the Bank of England base rate for 12 months. The new product will be available to 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.

Reza Attar-Zadeh, Director of Savings and Investments, at Santander said: "These latest products demonstrate our commitment to ensuring all our customers have access to great rates. Flexible ISA has been a fantastic success since its launch in ISA season, will continue to offer customers one of the best rates on the market for their Cash ISA subscription while Loyalty Flexible ISA is part of our ongoing approach to rewarding loyal Santander customers with great products across the range."

Both products are available to new and existing customers, for new ISA subscriptions only, on a minimum balance of just £1.

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

Launched the Loyalty Tracker Bond - for customers with a Santander Current Account, Mortgage or Investment customers.

Launched the Santander Zero Current Account - for customers with an Abbey or Santander Mortgage who have or open their primary­ current account with Santander. This has been extended to include all customers who have an investment product with Santander - meaning 2.5 million people are now eligible;

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;

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;

Customers who open a qualifying investment product with Santander can also benefit from Super Flexible ISA (issue 1) with a higher rate of 5.50 per cent gross AER. The Super Flexible ISA also allows customers to transfer in existing ISA balances.