Santander is launching a new Cash ISA (Image: Getty)
Santander has launched a range of ISAs paying 4.5% interest as the new tax year gets going. Each year, savers can put £20,000 into an ISA and enjoy tax-free interest on their money.
Various types are available, such as cash and stocks and shares accounts. The £20,000 allowance can be split across different types. From April 2027, the cash element will be restricted to £12,000 after Chancellor Rachel Reeves made changes at November’s Budget, although the overall allowance will remain at £20,000.
The end of one tax year and start of a new one is often referred to as ‘ISA season’, as banks and building societies try to lure customers with bumped-up interest rates and special offers. With the new tax year having begun on Monday, April 6, 2026, savers are given a fresh £20,000 allowance to make use of.
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The new ISA has a 4.5% interest rate (Image: Getty)
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.
“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 explained that savers depositing between £10,000 and £24,999.99 would get a £50 voucher; £25,000 to £49,999.99 gets them £100, while £50,000 to £99,999.99 means 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.”