Santander introduces top of high street ISA rates and increases in-credit interest on 1I2I3 Current Account

•    Santander has increased its Fixed Rate ISA products to top of the high street rates, providing savers with better returns for their hard-earned cash. 
•    Customers transferring an ISA into one of Santander’s Fixed Rate ISAs can also secure a £50 retail voucher, redeemable at hundreds of retailers. 
•    The in-credit interest rate on the 1I2I3, Select and Private current accounts has increased to a monthly interest of 1.50% AER/gross (variable) from 1.00% AER/gross (variable), meaning customers can earn up to £298 in interest per year. 

Santander has today launched top of high street rates for its Fixed Rate ISA products(1), paying up to 3.60%, with a £50 retail voucher for new and existing customers transferring their ISA balances.  In addition, the bank has increased the in-credit interest rate on its 1I2I3, Select and Private current accounts to a monthly interest of 1.50% AER/gross (variable) from 1.00% AER/gross (variable) on balances up to £20,000.
Fixed Rate Cash ISAs
The bank is increasing the rate on the following Fixed Rate ISA products:  
•    1 Year Fixed Rate ISA -     3.35% AER/ tax-free (fixed) from 3.00%   
•    18 Month Fixed Rate ISA – 3.45% AER/ tax-free (fixed) from 3.10% 
•    2 Year Fixed Rate ISA – 3.60% AER/ tax-free (fixed) from 3.25%   

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 a retail voucher(2), which can be spent at over 100 retailers, including restaurants, supermarkets, clothes stores, and subscription services.  A full list of retailers can be found here.  Customers will receive their voucher code automatically by email within 30 days of the completed transfer.

Santander’s £50 as a retail voucher helps boost the overall value of the ISA to customers.  According to HMRC figures the average ISA pot in the UK is £21,996(3), meaning that taking out a 1 Year Fixed Rate ISA product would provide an annual return of £736.87, plus the £50 voucher.  Savers can check what returns they can get by using the Bank of England savings calculator.

Santander is part of the industry ISA transfer scheme and has dedicated teams in place to process customers’ ISA transfer requests, making it quick and easy for customers to transfer an ISA from another provider to Santander(4)

Current Accounts 
From today, the 1I2I3, Select and Private current accounts will offer an in-credit interest rate increase to a monthly interest of 1.50% AER/gross (variable) from 1.00% AER/gross (variable) on balances up to £20,000.  The increase means 1I2I3 and Select current account customers will be able earn up to £298 per year in interest, plus cashback on household bills for a £4 monthly fee.  

The 1I2I3 Current Account is the only current account on the market to give customers cashback on household bills and interest on their balance. As previously announced, from September for two months, Santander is providing double cashback on customers’ gas and electricity bills, as well as on Santander Home and Santander life Insurance policies(5).
Santander offers other competitive saving rates, including 2.50% on the 123 Regular eSaver and 3.00% on 1I2I3 Mini Current Account (for children and young adults).  

Hetal Parmar, Head of Banking and Savings at Santander UK, said: “We understand saving for the future is important for many people and our increased rates on cash ISAs and the 1I2I3 Current Account will boost returns on customers’ money, helping with their savings goals.  For over a decade our popular 1I2I3 account has provided ongoing value and now customers can earn up to £298 in interest per year, plus cashback on household bills.”

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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.


Editor’s notes:
1)    More information on Fixed Rate ISA range can be found here: Fixed Rate ISAs | Santander UK  
2)    The £50 voucher is subject to availability and may be withdrawn at any time
3)    HMRC - Annual Savings Statistics, June 2022
4)    More information on how to transfer ISAs can be found here: How To Transfer Your ISA | Help & Support | Santander UK 
5)    Santander UK is currently offering 1|2|3, 1|2|3 Lite, Select and Private current account customers double cashback on their gas and electricity bills, as well as on Santander Home and Santander life Insurance policies, paid by Direct Debit from September, for two months. This excludes LPG/Calor gas

Cashback amount:

1% cashback (capped at £5)     

  • Council tax bills 
  • Mobile and home phone bills, broadband and paid-for TV packages 
  • Santander monthly mortgage payments 

2% cashback (4% from September for 2 months) - (capped at £5 and £10 for the double cashback period)     

  • Gas and electricity bills 
  • Santander Home Insurance premiums (policies administered and underwritten by Aviva Insurance Limited) 
  • Santander Life Insurance premiums (policies administered and underwritten by Aviva Life & Pensions UK Limited) 

3% cashback  (capped at £5)

  • Water bills 

The cashback rate will double from 2% to 4% and the monthly cap will double from £5 to £10 per month. Following this offer, the cashback will revert to 2%, capped at £5 per month, on this category.  Customers will receive this additional cashback automatically and cashback on other household bills categories will continue to be paid, at either 1% or 3%, each capped at £5 per month.  To be eligible for cashback, customers must pay in at least £500 per month (excluding internal transfers) and have at least 2 active Direct Debits. Customers must be 18+.