Review of Santander Fixed Rate ISA
This ISA is a particularly good option for Santander customers as anyone with a 123 Santander account will be entitled to a higher rate of fixed interest on their ISA account. However, the base rate for non- Santander customers is still very competitive. See out table for more information on interest rates and comparison.
Santander Group is a diverse retail and commercial bank with 14,760 branches (more than any other international bank), over 193,000 employees and more than 102 million customers. The bank has its origins in three companies: Abbey National, Alliance & Leicester and Bradford & Bingley, all former mutual building societies.
2 Year Fixed Rate ISA
You can guarantee your interest rate when you save your money in a Fixed Rate ISA.
- You can save from £500 up to your annual ISA allowance. You can open the account with a zero balance if you are transferring in existing ISAs with a balance of at least £500
- You can manage the account using branch, online, mobile or telephone banking.
- You won’t be able to access the account for two years, if you do a penalty equivalent to 120 days' interest applies. No partial withdrawals are allowed
- You can transfer in balances from existing ISAs you hold with external ISA providers on the condition that the ISA transfer in application is received within 14 days of account opening
- 123 World and Santander Select customers will automatically benefit from a higher interest rate on their 2 Year Fixed Rate ISA
Why use a Fixed Rate ISA?
Typically, a fixed-rate Isa account will pay more interest. In exchange for a higher rate, banks will ask you to tie up your cash. Generally, the longer you give up access, the higher the return. As it is a guaranteed amount, you know what you will end up with at the end which makes it a lot safer than investing.
ISAs are a good idea whatever your savings goal. With certain types of cash ISAs, you have instant access to your money, which makes it a flexible way to plan your finances. As this is a two year fixed rate ISA, make sure you are able to part with the money for that term with no issues. Alternatively, other banks offer one year fixed rates ISAs which may be more convenient.
It’s also important to remember that ISA allowance limits apply to everyone on an individual basis, so if you’re married or in a relationship, you can both hold your own ISA, each with the full allowance. This means you could save over £30,000 between you.