Santander cash ISAs paying up to 3.30 per cent

Santander is kicking off the ISA season offering market leading rates on its Loyalty Flexible ISA and its Flexible ISA.  Rates will increase for both new and existing customers offering competitive returns with a minimum guaranteed rate of up to 3.30 per cent AER.

Loyalty Flexible ISA Issue 1 rewards loyal customers with a guarantee to pay at least 2.80 per cent above the Bank of England base rate for the first 12 months; and the rate will not fall below the minimum rate of 3.30 per cent for the first 12 month period.  In addition, the account allows penalty free access to the money. So, savers have the peace of mind of a minimum guaranteed rate that can only go up and the added flexibility of an easy access account.  The Loyalty Flexible ISA is available to customers that have their main current account, mortgage or investment with Santander or who switch their main current account to Santander using the Account Transfer Service.

Flexible ISA Issue 3 guarantees to pay at least 2.65 per cent above the Bank of England base rate for the first 12 months and the rate will not fall below the minimum rate of 3.15 per cent for the first 12 month period, so you're guaranteed a competitive return.  The account allows penalty free access for withdrawals alongside a competitive return designed to encourage more people to save tax-free. 

Both accounts are available for new ISA subscriptions and do not allow any transfers in of existing ISA money.  Existing customers who already have one of these accounts will automatically benefit from the increased rates.

Reza Attar-Zadeh, Director of Savings and Investments said: "With interest rates at an all time low and inflationary pressure increasing, ISAs continue to play a vital role for tax paying savers.  We urge savers to look at the long term benefits of saving tax free by making the most of their ISA allowance, as unused allowances are lost forever.

Reza Attar-Zadeh continues "Following the popularity of Flexible ISA during the 2010 ISA season, we're pleased to offer Loyalty Flexible ISA and Flexible ISA at market leading rates to encourage people to make the most of their ISA allowance.  Our latest offering continues to underline our approach of rewarding loyal customers so that the more business you do with us, the more we will offer you in return."

Customers can apply by visiting santander.co.uk.