- Santander announces highly competitive rates across its two-year fixed ISA and eISA.
- As rates rise, four in ten people are considering saving in a Cash ISA in the 2019/2020 tax-year(1).
- Research shows that almost half don’t understand that ISAs allow customers to save money in a tax-efficient way.
Santander UK has today announced that it is introducing increased interest rates on its two-year fixed ISA and eISA..
The new Santander rates are available from Monday 4 March.
- 1.90 per cent on two year fixed-rate ISA for existing 123 World and Select customers;
- 1.30 per cent on two year fixed-rate ISA for non-123 world / Select customers;
- 1.50 per cent on eISAs for existing 123 world and Select customers; and
- 1.10 per cent on eISAs for non-123 world / Select customers.
While recent years have seen historically low interest rates and a fall in the number of customers opting to keep their savings in a Cash ISA(2), that could be set to change for 2019.
Research published by Santander today shows four in ten people are considering a move towards putting money into a Cash ISA during the 2019/2020 tax-year, with rising interest rates cited as the biggest reason.
Hetal Parmar, Head of Banking and Savings at Santander, commented: “It’s encouraging to see so many people are considering putting their money into ISAs this year and our improved interest rates will give an added boost to customers looking for a competitive return. Whether you’re kickstarting a savings habit or are well on the way to your savings goals, our range of ISAs could be a great way to help make your future plans a reality.”
Santander’s research also highlighted a lack of understanding around Cash ISAs, which may mean that many people are missing out on the benefits these accounts offer to savers.
Overall almost half of the population (45 per cent) don’t know that Cash ISAs allow them to save money without paying tax on the interest they receive, although more women (58 per cent) understand the tax-free status of their ISA savings than men (52 per cent).
Confusion around the amount of money that could be saved into an ISA is also prevalent, as two thirds (65 per cent) don’t know that they can save up to £20,000 in a single tax-year. Meanwhile, a similar number (64 per cent) believe you must tie your money up for a period of time in an ISA, when ISAs generally do allow access to funds.
Further details of the ISAs on which Santander have launched improved rates can be found below(3):
|Two-year fixed-rate ISA||
More information about Santander’s full range of Cash ISAs and details of the three different ways customers can invest in a Stocks and Shares ISA, including our innovative Digital Investment Adviser, is available at santander.co.uk or in a branch.
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The information contained in our press releases is intended solely for journalists and should not be used by consumers to make financial decisions.
- Research conducted by Opinium among 2,013 UK adults between 12th and 15th February 2019.
- HMRC data showed a decline in the number of customers subscribing to a Cash ISA with 10.8 million in 2017-2018 down from 11.1 million in 2016-2017.
- The full ISA range from Santander includes:
a. Two-year fixed rate ISA
c. Easy ISA
d. Help to Buy: ISA
e. Junior ISA
f. Stocks and Shares ISA
g. Inheritance ISA
Santander UK is a financial services provider in the UK that offers a wide range of personal and commercial financial products and services. It has brought real competition to the UK, through its innovative products for retail customers and relationship banking model for UK SMEs. At 31 December 2018, the bank has c23,800 employees. It serves around 15 million active customers, via a nationwide branch network, telephone, mobile and online banking; and 64 regional Corporate Business Centres. Santander UK is subject to the full supervision of the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) in the UK. Santander UK plc customers’ eligible deposits are protected by the Financial Services Compensation Scheme (FSCS) in the UK.
Banco Santander (SAN SM, STD US, BNC LN) is a leading retail and commercial bank, founded in 1857 and headquartered in Spain. It has a meaningful presence in 10 core markets in Europe and the Americas, and is the largest bank in the euro zone by market capitalization. At the end of 2018, Banco Santander had EUR 981 billion in customer funds (deposits and mutual funds), 144 million customers, 13,000 branches and 200,000 employees. Banco Santander made attributable profit of EUR 7,810 million in 2018, an increase of 18% compared to the previous year.
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