Santander hikes rates on its fixed rate cash ISAs and offers £50 for switching

Santander has upped the interest rates on its fixed rate cash ISAs. How do the rates compare to the rest of the market and how do you claim the £50 voucher for transferring your funds? We have all the details.

A branch of Santander on the high street
(Image credit: Getty Images)

Cash ISAs can be a great tool if you’re looking to shield your savings from the tax man. However, providers have been slow to pass on recent interest rate rises by the Bank of England (BoE) on to ISA savers. Compared to the best savings accounts on the market, most cash ISAs look pretty unappealing. 

Still, as Sarah Coles at Hargreaves Lansdown says, “You tend to earn a slightly lower interest rate on a cash ISA than on the equivalent savings account, but it’s not dramatically lower, so for an awful lot of people it will be a price worth paying.”

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Swipe to scroll horizontally
AccountOld rate AERNew rate AERMinimum deposit
Santander one-year fixed rate ISA5.05%5.6%£500
Santander two-year fixed rate ISA5.1%5.45%£500

Vaishali has a background in personal finance and a passion for helping people manage their finances. As a former staff writer for MoneyWeek, Vaishali covered the latest news, trends and insights on property, savings and ISAs.

She also has bylines for the U.S. personal finance site Kiplinger.com and Ideal Home, GoodTo, inews, The Week and the Leicester Mercury.