What are the current Santander Cash ISA rates?

If you’re looking for the best Cash ISA for your savings, keep in mind that the big high-street banks don’t always offer the most competitive rates - take a look at our guide on the Best Cash ISAs in the UK for more information.

What are the current Santander ISA rates?

There are currently five Santander Cash ISAs to choose from, including easy access, fixed rate ISAs, Junior ISAs and an Inheritance ISA, with interest rates ranging from 1.40%-4.01% AER.

Here’s a quick breakdown of the interest rates and key terms:

1. Santander 1 Year Fixed Rate ISA: 4.01% AER/tax-free (fixed) for a 1-year fixed term until 1st 1st December 2025. You can open the account with £500 or more. To withdraw money from the account, you need to close the account. If you close the account early, a charge equivalent to 120 days of interest will be applied.
2. Santander 18 Month Fixed Rate ISA: 3.91% AER/tax-free (fixed) for an 18-month fixed term, 1 June 2026. You can open the account with £500 or more. To withdraw money from the account, you need to close the account. If you close the account early, a charge equivalent to 120 days of interest will be applied.
3. Santander 2 Year Fixed Rate ISA: 3.81% AER/tax-free (fixed) for a 2-year fixed term, until 1st December 2026. You can open the account with £500 or more. To withdraw money, you need to close the account. If you close the account early, a charge equivalent to 120 days of interest will be applied.
4. Santander Easy Access ISA: 1.40% AER (variable) for 12 months. £500 minimum opening deposit required, unlimited withdrawals. 
5. Santander Junior ISA: 3.20% AER/ (variable). There is no minimum opening deposit required, but no withdrawals are allowed until the child turns 18. If the child has a Child Trust Fund or another Junior ISA, it must be transferred as part of the application. You must open this type of ISA in a Santander branch.
6. Santander Inheritance ISA: 3.20% AER (variable). This is for the surviving spouse or civil partner of an ISA holder who died on or after 3rd December 2014 to benefit from an additional ISA allowance. There is no minimum opening deposit required, but you have to open this type of ISA in a Santander branch. 

Source: Santander Personal Savings and ISAs. Santander ISA rates and terms accurate as of November 2024.

What is Santander’s best ISA rate?

Santander’s best Cash ISA rate is currently 4.01% AER (fixed) on its 1-year Fixed Rate Cash ISA. If you’re happy to lock away your money for this length of time, then this could be the right account for you. But if you do withdraw money, you’ll be charged 120 days’ interest and your account will be closed. There are also other easy access Cash ISAs available on the market which offer similar, if not better interest rates than this with unlimited withdrawals. Santander does have an easy access Cash ISA, but it comes with a lower interest rate of 1.40% AER/tax-free (variable). 

Is Santander a good ISA provider?

Santander offers a small range of easy-access and fixed-rate Cash ISA accounts, with a range of interest rates, minimum opening balance requirements and withdrawal allowances. However, in comparison to some other Cash ISA providers, Santander does not offer the most competitive interest rate across its easy-access accounts. Santander’s fixed-rate Cash ISAs do offer higher rates, but these are only available for 1-2 years and have withdrawal limits. 

Can I have two ISAs with Santander?

Yes, you can have two ISAs with Santander, but there are some restrictions - you can only pay into one of your Santander Cash ISAs each tax year. You can open and pay into a Cash ISA with another provider, however. So if you’ve already paid into a Santander Cash ISA this year and you’ve spotted a better Cash ISA elsewhere, you could open a second account or even transfer your existing one to your new provider. You could also have a Lifetime ISA or stocks and shares ISA with a different provider, but regardless of the number of ISAs you have, you’ll still need to make sure your deposits across all your ISA accounts are still within your £20,000 ISA annual allowance.

Take a look at our guide on having more than one ISA to learn more

Will Santander increase ISA rates?

Santander may increase its interest rates, but it also could lower them - this will be largely influenced by what’s happening to interest rates in general. If interest rates start to come down, then Santander is likely to decrease its rates to reflect current interest rates. If you choose a fixed-rate Cash ISA, the interest rate will remain the same for the duration of the fixed term, regardless of any changes made to Santander’s advertised ISA rates. Once your fixed term has ended, you can open a new Santander Cash ISA or transfer your savings to another ISA provider. 

If you’re saving a deposit for a house, you could transfer your Cash ISA to a Lifetime ISA, or open as well as a Cash ISA. With a Lifetime ISA, you can save up to £4,000 each tax year towards your first home or retirement, and the government will give your savings a 25% boost each year you pay into the account - for free! 

How to find the best Cash ISA Rates

If your current bank also offers a Cash ISA, it can be tempting to open one with them. This may seem like the simplest option, but could see you missing out on a more competitive interest rate and better service elsewhere. To really get the most out of your money, compare the best Cash ISA rates from across the market. There are so many providers to choose from, from banks and building societies to modern savings platforms. Choosing the right one can make a huge difference to your finances and help you reach your savings goals faster. When comparing providers, don’t just compare interest rates. You also want to consider customer service quality, how easy it is to access your funds, and whether there are any bonus features or benefits. 

Here at Tembo, for example, all our savings products can be managed via our award-winning savings app. As well as competitive interest rates, our customers are also automatically entered into our £1,000 cash giveaway each month, and have access to saving tips and tricks.

How to transfer my Santander ISA to another provider

To transfer your Santander ISA to another provider, simply open a new ISA and ask your new provider to move the money for you. Moving the money yourself could have an impact on your savings’ tax-free status and this year’s ISA allowance. 

For example, if you’ve saved £30,000 in a Cash ISA over a number of years and you’d like to transfer your savings to a new provider, doing the transfer yourself would use up your full £20,000 ISA allowance for this year. You’d have to wait until the following tax year to move the remaining £10,000 into your Cash ISA. Until then, you’d need to keep it in a traditional savings account, where your interest would be taxed.

By asking your new provider to make the transfer for you, you’ll protect your savings’ tax-free status and preserve any remaining ISA allowance for this year.