Santander has announced the launch of two new Isas. One is the flexible Isa issue three and the other the loyalty flexible Isa. The flexible Isa issue three pays 2.85 per cent interest and is a tax-free instant access Isa. The loyalty flexible Isa will pay 3.0 per cent and is tracking 2.50 per cent above the Bank of England base rate for 12 months.
This puts Santander into first place when it comes to easy access Isas. Both Halifax and Principality Building Society fall slightly short of Santander’s 2.85% with their own rates of 2.80%.
The new flexible Isa issue three will offer customers a variable rate and will also track the Bank of England base rate for 12 months. It is available for a minimum deposit of 1 pound up to a maximum of 5,100 pounds.
The new loyalty Isa product offered by Santander is available to current customers that hold a Santander account, or mortgage or investment account. New customers that open an account through the Account Transfer Service will also be eligible. It is, according to a Santander spokesperson, Santander’s effort to bring great rates on Isa’s to their customers.
Reza Attar-Zadeh, Santander’s director of savings and investments, said: “Flexible Isa has been a fantastic success since its launch in Isa season and 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.”
Tom Stevenson, of Fidelity Investment Managers, is advising those with part of their 5,100 pounds allowance to consider choosing a best rate offer now. He said: “Isas are a fantastic use-it-or-lose-it tax perk – no way back if you let the tax year pass without taking up your allowance.
“We would encourage those people that habitually leave it to the end of the tax year to remember the difference that investing earlier can make – put simply, it gives your money more time to grow in the market over the long run.”