Santander launched a new competitive 2-year fixed-rate ISA back in 2012 to existing and new 123 current account and credit card customers. This cash ISA offers you a tax-free guaranteed interest rate for a fixed term.
Currently, you can get a fixed rate of 0.10% ER/tax-free for 2 years for savings of £500 and over and you can receive a fixed rate of 0.20% AER/tax-free for 2 years for savings of £25,000 and over.
To open the account you’ll need to be a UK resident aged 16 or over and you’ll need a minimum of £500 to open the account. You can open an account both online and mobile or by visiting any Santander branch. The ISA account also allows transfers-in from any provider at any time but the transfer request must be received within 14 days of the creation of your Santander ISA.
As mentioned above the minimum amount of money you need to open up an account is £500 and the Isa allowance for the 2021/2022 tax year is £20,000.
Any money that is withdrawn rather than transferred from the ISA account will be considered a withdrawal and you will lose the tax-free status. Furthermore, any money that is replaced into the account will tally towards your current tax year ISA limit.
Matt Hall, Head of Savings said: “It’s important for savers to take advantage of ISAs as early as possible to maximise their tax-free returns. This two year ISA offers a market-leading rate and gives customers the peace of mind of knowing exactly what they will get back.”