Santander offers market-leading interest rate on fixed cash ISA

With the deadline to use up this year’s ISA allowance fast approaching, Britons have been searching for the accounts offering the best deals. Santander is currently offering the market-leading interest rate for one year fixed cash ISAs – as well as a £50 e-voucher for those who make a switch.

Cash ISAs are a popular savings option amongst Britons, as these come with additional benefits, such as enabling money to grow without having to pay tax on the interest above the Personal Savings Allowance (PSA).

These accounts also typically offer some of the highest interest rates on the market, however, they can come with a few more restrictions, like penalty charges for early access or transfers.

Fixed-rate bonds offer a fixed rate of interest for a set length of time, which helps add a layer of certainty to savings. This means the bank or building society cannot change the interest rate during the term, which works well for account holders hoping to save long-term.

Santander’s One Year Fixed Rate ISA is offering an Annual Equivalent Rate (AER) of 4.15 percent.

Savers must deposit at least £500 to open the account and interest is calculated daily and paid annually or at maturity. The maximum balance at any time is £2million.

Partial withdrawals aren’t allowed. People can withdraw money from this account early by closing it, however, there will be a penalty equivalent to 120 days’ interest if this takes place.

New and existing customers who transfer an ISA of at least £10,000 from another provider into a Santander Fixed Rate ISA will benefit from £50 cashback as an e-voucher, which can be spent at over 100 outlets, including restaurants, supermarkets, clothes stores, and subscription services.

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But while Santander is offering the market-leading rate, the competition isn’t too far behind. According to, Virgin Money’s One Year Fixed Rate Cash E-ISA (Issue 560) falls just behind with an AER of 4.11 percent.

The account can be opened with just £1 and interest is applied annually on August 5. Those who opt for monthly payments will see interest applied on the last day of the month, on the next working day.

Withdrawals are permitted but will be subject to a charge equivalent to 60 days’ loss of interest on the amount withdrawn.

Savers who invest in Virgin Money accounts can also have access to special deals across the wider Virgin Group that can help people save on items like everyday essentials, as well as days out and holidays.

Leeds BS’s One Year Fixed Rate Cash ISA (Issue 182) places third with an AER of 4.1 percent.

The account can be opened with a minimum deposit of £100 and interest is calculated daily and paid on maturity on April 30, 2024.

Withdrawals and transfers are permitted, although they will be subject to 60 days’ loss of interest on the amount equivalent to that withdrawn/transferred. If the balance falls below £100, the rate of interest will drop to 0.05 percent.

The ISA allowance for the 2022/23 tax year is £20,000 and deposits can be made up to and including April 5, 2023.

The tax year will renew on April 6, after which the £20,000 ISA allowance will restart too, but savers are being urged to make the most of the allowance sooner rather than later.

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