26th March 2014
Savers into Santander’s 2 year fixed rate cash Isa will be able to make deposits up to 31 August 2014 to take advantage of the new ISA (NISA) limit of £15,000.
The change apples to products opened from 10 March 2014. The bank says new or existing Santander customers who opt for its 2 Year Fixed Rate Cash ISA will now be able to fund their account up to the new allowance between 1 July to 31 August 2014.
The bank says the changes mean that a customer who opens a Santander 2 Year Fixed Rate ISA before the 2013/14 tax year end can use this year’s £5,760 allowance, top-up with 2014/15 allowance of £5,940 between 6 April and 30 June 2014, and then increase their funding to the maximum £15,000 between 1 July to 31 August 2014.
Santander’s 2 Year Fixed Rate ISA currently pays 2.00 per cent AER tax free (fixed). New and existing Santander 1|2|3 customers; Current Account and Cashback Credit Card customers, and all Santander Select customers, can access the 2 Year Fixed Rate ISA, paying a market-leading 2.30 per cent AER tax free (fixed).
Santander continues to offer its easy–access direct ISA saver offering 1.60 per cent AER tax free (variable) for 12 months, which is open to deposits at any point in the tax year. It offers access via cash card, telephone and internet banking². Both the 2 Year Fixed Rate ISAs and Direct ISA Saver require a minimum opening balance of £500.
Richard Al-Dabbagh, Head of Savings for Santander said: “The Government’s ‘New ISA’ (NISA) is great news for consumers wanting to make the most of their tax-free savings. Santander has changed its funding rules for fixed rate ISAs to ensure savers who have yet to make arrangements for the current tax year or for those looking to maximise their savings in 2014/15, can take advantage of the new increased limit of £15,000 from 1 July 2014.”