Increased Cash ISA Interest Rates From Santander

Santander will increase the interest rates on its Cash ISAs, the Loyalty Flexible ISA and Flexible ISA on 11 March 2011.

The interest rates will increase for both existing and new products. The Loyalty Flexibile ISA Issue 1 will pay a minimum 3.50% (3.00+ BoE base rate for 12 month term) and the Flexible ISA Issue 3 a minimum 3.30% (2.80% + BoE base rate for 12 month term).

Santander are rewarding their loyal customers with the higher rate. These are customers who either have an

• Existing Primary Banking customers paying in at least £1,000 per month in each of the last 3 months;
• Existing Mortgage customers not in arrears (arrears means having missed 2 payments in the last 12 months), excluding commercial mortgages and Alliance & Leicester mortgages;
• Existing Santander Investment customers, which includes investments held with Santander ISA Managers Limited, Santander Portfolio Management UK Limited or Santander Unit Trust Managers Limited. Excludes standard savings accounts such as fixed rate bonds and cash ISAs.
• Initially, customers who open a new current account and use the Account Transfer service to switch their account to Santander will also be eligible for the Loyalty Flexible ISA. Customers must switch all of their direct debits and standing orders (minimum two) and pay in at least £1,000 per month.

Both accounts allow penalty free access to the money. They are both open for new ISA subscriptions but do not allow any transfers in of existing ISA money.

New fxed rate Postal ISA too

Santander are also launching a new issue of their 2 Year Fixed Rate Postal ISA at a rate of 3.70% with a minimum investment of £500.