Santander launches market leading ISAs

Category: Savings
Date: 2/25/2010

Santander has stolen an ISA season march with two new products that sit at the top of the table in their respective markets.

The Flexible ISA is an instant access cash product with a minimum investment of £1 paying 3.50% yearly. The rate is guaranteed to be at least 3.00% above base rate and with a minimum rate of 3.50% for first 12 months.

After 12 months the rate reverts to a variable one (currently 0.50%). Transfers out can be made without penalty and additions are allowed. Transfers in are not accepted. A cash card is available.

The Super Flexible ISA is an instant access cash product for a 12 month term with a minimum investment of £1 paying 5.50% yearly. The rate is guaranteed to be at least 5.00% above base rate and with a minimum rate of 5.50%.

After 12 months it becomes a Flexible ISA paying the underlying variable rate (currently 0.50%). Transfers out can be made without penalty and additions are allowed, as are transfers in. A cash card is available.

Customers must invest an equal amount or more in any qualifying Santander Asset Management product (Premium & Portfolio investments as well as capital guaranteed investment) at the same time.
Both ISAs are also available at branches of Alliance & Leicester.

The flexible ISA should prove popular with investors and with no restrictions on the number of withdrawal and the operational flexibility, it is hard to beat. The Super ISA leads the way in its field, although the requirement to invest an equal amount in a qualifying product may limit its appeal.

Both ISAs have been awarded four out of five Moneyfacts stars.

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at anytime.