Santander confirms new ISA (NISA) fixed rate cash terms

Santander

4 min read26 March 2014 Partner content

• Santander updates fixed rate ISA terms to ensure savers can make the most of their ISA allowance of up to £15,000 from 1 July 2014 • Savers can deposit in to the 2 Year Fixed Rate ISA up to £15,000 limit from 1 July until midnight 31 August 2014 • Santander’s 2 Year Fixed Rate pays a market-leading 2.30 per cent AER tax free (fixed) exclusively for new and existing Santander 1|2|3 Current Account / 1|2|3 Cashback Credit Card and Santander Select¹ customers • Savers should act now to avoid disappointment and ensure they don’t miss out on these great rates and make the most of this year’s 2013/14 ISA allowance.

Savers keen to take advantage of the new ISA (NISA) increased £15,000 limit and make the most of their tax free savings, will be able to make deposits in to their Santander 2 Year Fixed Rate Cash ISA account up to 31 August 2014 (for products opened from 10 March 2014).

Following the Government’s changes to ISA’s overall annual subscription limit, new or existing Santander customers who opt for its 2 Year Fixed Rate Cash ISA will now be able to fund their account up to the new allowance between 1 July to 31 August 2014.

The changes mean that a customer who opens a Santander 2 Year Fixed Rate ISA before the 2013/14 tax year end can maximise their tax free savings, using this year’s £5,760 allowance, top-up with 2014/15 allowance of £5,940 between 6 April and 30 June 2014, and then increase their funding to the maximum £15,000 between 1 July to 31 August 2014.

Santander’s 2 Year Fixed Rate ISA currently pays a competitive 2.00 per cent AER tax free (fixed), offering savers a guaranteed return. New and existing Santander 1|2|3 customers; Current Account and Cashback Credit Card customers, and all Santander Select customers, will benefit from a2 Year Fixed Rate ISA, paying a market-leading 2.30 per cent AER tax free (fixed).

As well as 2 Year Fixed Rate ISA, Santander continues to offer its easy–access DIRECT ISA SAVER, offering a competitive 1.60 per cent AER tax free (variable) for 12 months, and open to deposits at any point in the tax year. It offers access via cash card, telephone and internet banking². Both the 2 Year Fixed Rate ISAs and Direct ISA Saver require a minimum opening balance of £500.

Richard Al-Dabbagh, Head of Savings for Santander said: “The Government’s ‘New ISA’ (NISA) is great news for consumers wanting to make the most of their tax-free savings. Santander has changed its funding rules for fixed rate ISAs to ensure savers who have yet to make arrangements for the current tax year or for those looking to maximise their savings in 2014/15, can take advantage of the new increased limit of £15,000 from 1 July 2014.

“Helping families make the most of their money is a priority for Santander, and those new and existing customers who have a 1|2|3 Current Account or 1|2|3 Cashback Credit Card, or who are a Santander Select customer, can benefit from the best rate on the market with our exclusive 2 Year ISA at 2.30 per cent AER tax free (fixed). This is in addition to the cashback and interest available to them on their 1|2|3 current account or cashback credit card. While our new 1|2|3 Mini children’s account, which pays up to 3% tax-free on balances of up to £2,000, is there to help the youngest family members get in to the savings habit.”

Savers should act now to avoid disappointment and ensure they don’t miss out on these great rates and make the most of this year’s 2013/14 ISA allowance. With the end of the tax year fast approaching it’s important that savers don’t leave it too late to apply for an ISA in time to fund before the end of the current tax year.

Account name

Exclusive 2 Year Fixed Rate ISA

for customers with a 1|2|3 Current Account and/or 1|2|3 Credit Card or who are Santander Select customers

2 Year Fixed Rate ISA

Direct ISA Saver

Interest Rates (AERs)

2.30%

AER tax free fixed

Matures 01/05/2016

£500 minimum opening deposit

2.00%

AER tax free fixed