A simples guide

Santander ISA Information & Comparison

Santander Bank is one of the biggest names in the high street and the Spanish-owned bank inevitably has a wide range of ISAs to choose from. Even if you bank with Santander, though, you should always check the market and compare the rates on offer elsewhere to make sure you’re getting the right deal for you.

ISAs aren’t as complex as they sound but you do need to compare the best deals to fully appreciate the subtle yet important difference. You should also look closely at the terms, as some providers will let you access your money at various points, while others might not.

Our comparison service can help guide you through the maze and help you find a product that’s right for you. 


What types of ISAs does Santander offer?

Santander offers a range of ISAs and you should find one that works for you. They include the eISA, an online account with instant access to your funds. This will give tax-free interest for 12 months, you can open the account with £500, get online banking and start saving.

The Easy ISA is another straightforward cash ISA that provides 0.5% AER on balances over £40,000. You can open an account with a £1 deposit and save up to your ISA allowance, although you will lose the tax-free element beyond the government-imposed ISA limit.

Two-year fixed-rate ISAs generally offer better rates of return, but with Santander you cannot access your money or make any partial withdrawals. The only way to get your money out of the account is to close it and lose the equivalent of 120 days of interest.

The Help to Buy ISA helps first-time buyers get on the property ladder with a scheme that allows them to invest £1200 in in the first month and then up to £200 a month. The government makes a contribution as well. If you save more than £1600, you’ll receive 25% of the balance up to a maximum of £3000, a fantastic tax free bonus.

You can also contribute to a savings plan for your child’s further education, deposit on a property or even a gap year with a Junior ISA. Again you cannot close these accounts early and they generally mature on the child’s 18th birthday. So if you want to give your child a helping hand into the adult world then the Junior ISA could be a perfect savings vehicle. 

What are Santander ISA rates?

While the cash ISAs offer convenience, easy access to your money and the chance to start saving, the interest rates start off low. The Easy ISA and eISA start with a 0.1% AER, rising to 0.5% for deposits over £40,000. Santander range of fixed-rate products range from 0.5% to 1.7%. The longer you are prepared to commit your money, the better your rate of return.  

Santander has gone all-out with the Help to Buy ISA and has matched the industry-leading rate of 4%. Other banks are offering half that, so this is a major concession in a bid to win long-term business, which is good for you as a customer. You can get access to a sensational rate of interest and save a bigger deposit by the time your policy matures. 

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Is a Santander ISA right for you?

You always need to check the policy and ensure that you are happy with your ISA. If you’re opening a fixed account for a long period of time an ISA could be a long-term financial arrangements and you have to check the fine print and ensure that you understand what you are getting into. Our price comparison service can help you compare ISAs, so you can find the right product for you.

All Santander ISA account details are based on information provided on Santander.co.uk data on 21 April 2016

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