Santander recently announced an uptick in interest rates, leading to further increases in interest rates for its savings accounts. The bank yesterday announced that it would raise the rate of its ISAs by one and two years. This follows a series of interest rate hikes by the bank over the past year to better support savers. Santander's one-year fixed rate ISA now pays customers a rate of 5.60 percent AER/tax-free. The financial institution's two-year fixed rate ISA is paying savers 5.45 percent AER/tax-free.
The bank is offering customers switching to an ISA with at least £10,000 in value from another provider, a £50 e-voucher. If you are interested in opening up a fixed-rate ISA, you can do so online or by visiting your local Santander branch. Central banks have raised interest rates in the past year to address the effects of inflation. Despite rising rates globally, savers have been slashed by record-high inflation which has resulted in a decline in returns.
We use your sign-up to provide content in ways you've consented to and improve our comprehension of you. SmartSave's founder and CEO, Andy Mielczarek, said that savers may not be receiving the benefit of these hiked interest rates. Even though interest rates have risen notably since the end of 2021, and may again tomorrow, millions are not seeing any significant benefits from this.