Santander increases ISA rates

Santander is increasing the market leading rates on its Loyalty Flexible ISA (issue 1) and its Flexible ISA (issue 3).  Rates will increase for both new and existing customers in these products, offering competitive returns with a minimum guaranteed rate of up to 3.50 per cent AER.

Existing customers who have already opened one of these accounts will automatically benefit from the increased rates.

For any ISA saver looking to secure a good return on their existing ISA money Santander are also launching a new issue of the highly competitive 2 Year Fixed Rate Postal ISA.  The new fixed rate will now pay a best buy 3.70 per cent from a minimum of £500 and is available for new subscriptions and ISA transfers.

Reza Attar-Zadeh, Director of Savings and Investments said: "We are committed to delivering value-for-money products and this latest move underlines our desire to ensure customers benefit from the best instant access variable rate ISA in the market".

Loyalty Flexible ISA Issue 1 rewards loyal customers with a guarantee to pay at least 3.00 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 3.50 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 who 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 2.80 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, 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.

Customers can apply either by visiting any local branch of Santander, by visiting santander.co.uk.