‘Eye-catching’ Santander account pays 4.5pc interest and £400 bonus | Personal Finance | Finance
Santander is trying to entice customers (Image: jaanalisette via Getty Images)
Santander has introduced a selection of ISAs offering 4.5% interest as the new tax year commences. Each year, savers can deposit £20,000 into an ISA and benefit from tax-free interest on their funds.
Different varieties are on offer, including cash and stocks and shares accounts. The £20,000 allowance can be divided between various types.
From April 2027, the cash component will be capped at £12,000 following Chancellor Rachel Reeves’ modifications at November’s Budget, though the total allowance will stay at £20,000.
The conclusion of one tax year and the beginning of another is frequently described as ‘ISA season’, as banks and building societies attempt to attract customers with enhanced interest rates and promotional deals. With the new tax year having started on Monday, April 6, 2026, savers have a fresh £20,000 allowance to utilise.
James McCaffrey, spokesperson for TotallyMoney, said: “With the ISA Golden Window still wide open, Santander has launched a flat 4.5% offer across one, two, three and five-year terms. The offer also comes with an eye-catching sign-up bonus with vouchers of up to £400.
ISAs offer tax-free saving (Image: designer491 via Getty Images)
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“However, to secure this, you’ll need to deposit at least £100,000, or to receive a £50 voucher, at least £10,000. 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.”
Santander confirmed that savers depositing between £10,000 and £24,999.99 would receive a £50 voucher; £25,000 to £49,999.99 earns them £100, while £50,000 to £99,999.99 yields a £200 voucher.
Andrew Hagger, personal finance expert at Moneycomms.co.uk, added: “The fierce competition in the ISA Golden Window shows no sign of subsiding – the 4.5% 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.”
