Santander’s new Flexible ISA
Santander has launched its new Flexible ISA, which is also available through the Alliance & Leicester brand.
Paying a market-leading 3.50%, the Flexible ISA is available to new and existing customers of the Santander and Alliance & Leicester brand.
The rate is also guaranteed to be at least 3.00% above the Bank of England base rate for 12 months and the account offers customers unlimited penalty-free withdrawals.
It has a minimum deposit of £1 and, because this is a cash ISA account, the maximum you can deposit at present is £3,600 or £5,100 for the over-50s.
When the new tax year begins on April 6, the tax-free allowance will rise to £5,100 for everyone, so you could save even more.
However, you cannot transfer ISA funds from existing accounts. If you want a better rate for money saved in previous years, you’ll need to look elsewhere.
This is a variable rate account but the guarantee that it will stay 3.00% above base rate guarantee makes it a very competitive deal. However, after 12 months, it plummets to Santander’s variable rate, which currently sits at 0.50%. You should check the rate and consider transferring your money when that happens.