Santander launches 'top of market' 4.5 per cent ISA range in a boost for savers

Temie Laleye
Thu, 09 Apr 2026 14:53:53 +0000

Santander has launched a new range of Fixed Rate ISA products, allowing Brits to earn more from their savings.

The range includes a top-of-market rate among high street providers for a one-year fixed rate ISA.

The new range spans one, two, three and five-year options.

Savers can benefit from 4.5 per cent annual equivalent rate across all terms.

According to the bank, the one-year product represents the leading rate available among high street providers.

Gail Russell, Head of Everyday Banking at Santander UK, said: "We're pleased to have launched a new range of competitive fixed rate ISAs, helping our customers save for the future, completely tax free."

The launch arrives just days after the new tax year began on 6 April, a period when banks traditionally compete most intensely for ISA customers seeking to maximise their annual allowance.

Customers transferring £10,000 or more from an ISA held elsewhere into a Santander Fixed Rate or Easy Access ISA will receive a bonus cashback e-voucher as part of the promotion.

The voucher value increases with larger transfers, reaching £400 for those moving £100,000 or more into their new account.

These digital vouchers can be redeemed at more than 250 retailers, encompassing supermarkets, restaurants and clothing shops.

Ms Russell added: "With a bonus e-voucher offer on top, not only will customers gain greater confidence in their returns, but they can also benefit from a little extra cash back in their pocket this Spring."

Commenting on the deal, James McCaffrey, spokesperson for TotallyMoney said: "When considering longer fixes, it’s important to remember that you’ll incur fees if you want to access your money before the end date. In terms of the fixed-rate Santander offer, you can withdraw money by closing the account, and this will come with a charge equivalent to 120 days’ interest.

"When taking out any financial product, whether that’s an ISA, credit card, loan, or even a buy now pay later agreement, it’s important to shop around and to compare your options. And if you're sitting on savings, that means looking at not just ISAs, but easy access accounts, and smaller providers who might be offering more competitive rates."

Andrew Hagger, Personal Finance Expert at Moneycomms.co.uk added: "The fierce competition in the ISA Golden Window shows no sign of subsiding - the 4.50 per cent deals from Santander are excellent value and even more so with the additional bonus E-Vouchers - I expect this to be a successful promotion for Santander."

Its one-year flexible cash ISA now pays 4.20 per cent, while the Premier 18-month flexible cash ISA offers 4.40 per cent.

The bank is additionally providing transfer bonuses ranging from £50 to £600 for customers moving their ISA balances before the end of April.

Sian McIntyre, head of savings at Barclays UK, said: "We know now is one of the most popular times to open a cash Isa account, as people open new products after their allowance has reset."

This tax year carries particular significance for savers under 65, who have until April 2027 to deposit their full £20,000 annual allowance into cash ISAs.

Rule changes taking effect next spring will cap cash ISA contributions at £12,000 for this age group, with the remaining £8,000 of their allowance directed towards stocks and shares products.

Savers aged 65 and above will continue to enjoy the full £20,000 cash ISA subscription limit.

Mr McIntyre noted: "With no clear consensus on what will happen with the Bank of England base rate this year, people preferring a cash Isa can take advantage of the fact you can split your allowance across multiple products."

Katie Horne, banks relationship manager at Flagstone, said: "It's a great time for savers to take advantage of competitive rates and compelling incentives."