What types of ISAs does Santander offer?
Santander offers no less than six ISAs, so you’re spoilt for choice. Here’s the lowdown:
• Two-year fixed rate ISA: At the moment this offers the best interest rate of all Santander’s ISAs. And if you hold a Santander 1|2|3 account or are a Santander Select customer, then you get an even better fixed rate with this ISA. You have to deposit a minimum of £500 and you can’t make partial withdrawals. If you do want to take your money out, you have to remove all of it and you’ll have to pay a penalty equivalent to 120 days’ interest.
• eISA: As you’d expect from the name, you manage this account online. You get instant access to your funds and you’re not locked in for two years at a certain rate – key if the base rate does move. Again, if you already bank with Santander and are a Select or 1|2|3 customer, then you get preferential rates of interest. You’ll have to deposit a minimum of £500 but interest applies to balances from just £1.
• Easy ISA: Designed to do exactly what it says, this gives you instant access to your money and you have the flexibility to manage your account online, through telephone banking and also in branch.
• Help to buy ISA: This is a government-backed ISA where you get a 25% bonus on balances from £1,600 up to £12,000. The aim of the scheme is give first-time buyers more equity in their property. The money is paid out after the house sale has gone through, so it can’t be put towards solicitors or estate agent fees.
• Stocks and shares ISA: If you have some spare cash and are happy to lock it away for several years, then this could give you better returns in the long run compared to a traditional savings account or ISA. But, there are risks. For example, your capital isn’t guaranteed and the value of your investment can fluctuate, depending on the stock market and the shares you hold.
• Junior ISA : If you have parental responsibility for a child under 16, you can open a junior ISA for them. If your child is 16 or 17, they can open the ISA themselves. Junior ISAs offer the same tax-free savings opportunity as a grown-up ISA, but the allowance is smaller. For the 2017/2018 financial year, the most you can put into a junior ISA is £4,128.