What types of ISAs do Santander offer?
For the best interest rate that Santander currently offers, you’d need to go for the Santander 2 Year Fixed Rate ISA. The account can be opened with a minimum deposit of £500 and pays a decent rate for the two year term. If you’re already banking with Santander and have a 123 World or Santander Select account, you would receive an even better rate on your savings. As with all fixed rate ISA’s, you should only use one, if you’re happy to commit the funds for that period of time. No partial withdrawals are allowed and if you are forced to close the account early, a penalty equivalent to 120 days’ of interest applies.
For instant access, Santander offers the Easy ISA. You can manage the account online, via your mobile, a branch or telephone and it can be started with just £1. The downside of this ISA is that it currently only pays a low rate unless you have a balance greater than £40,000, in which case you’ll receive a slightly higher rate.
Better value is the eISA, which is also instant access but can only be managed online or via mobile banking. This account pays higher rate than the Easy ISA, or, if you’re already a Santander 123 World or Select customer,, you’ll get an even better rate again. You’ll need a minimum of £500 to open this ISA though you’ll still earn interest on everything over £1.
Finally, if you’re saving to buy your first home, there’s the Santander Help to Buy ISA. This ISA can help boost your savings with a large tax free rate for non-Santander customers and an even better rate if you’re a 123 World or Select customer. You can open a Help to Buy ISA with an initial deposit of up to £1,200 and then deposit up to £200 a month thereafter. When you come to buy your home, your solicitor can apply for a government bonus for you. This is worth 25% of your final balance on anything over £1,600. The bonus is capped at £3,000.