Santander ups eISA rates to 0.80% for 123 world customers

Non 123 World or Select customers will be offered 0.70%.

With ISA season in full swing, Santander has increased the interest on its eISAs by 0.20%. This means 123 World or Select customers will access a rate of 0.80% while other customers will be offered 0.70%.

“We’re pleased to have increased rates across a range of Santander accounts recently, and our improved e-ISA offers customers one of the highest Cash ISA rates from a high street bank, with an even higher return for our 123 current account customers as a reward for banking with us,” said Hetal Parmar, Head of Banking and Savings at Santander UK.

Existing customers who opened an eISA from 16 March will automatically get the increased rate from today. 

However, new customers require a minimum £500 deposit to open an eISA or 123 eISA. Both accounts need to be opened via the mobile app, website, or nearest branch.

Interest for both eISAs is paid on a yearly basis and must be compounded. Customers can make withdrawals at any time and can add to their funds until 5 April 2022.

After 12 months, investors will be reverted to Santander’s ISA Saver.

While the 123 eISA’s 0.80% rate matches the second-best easy access ISA rate offered on our charts, the eISA’s 0.70% rate can be found further down the pecking order on our charts.

At the top of the instant access cash ISA chart is Shawbrook Bank’s Easy Access Cash ISA - Issue 20. At 0.85%, savers can expect their interest to be paid either on anniversary or monthly on balances greater than £1,000.

Withdrawals are permitted, but only via a nominated account.

It is also worth noting that some existing Yorkshire Building Society members have access to its Loyalty Six Access Saver ISA Issue 2 and Loyalty Six Access Saver e-ISA. Both accounts offer rates of 1.00%, which means Shawbrook Bank’s may not be the best rate on the market for some investors.

Matching Santander’s rate for its 123 World or Select customers are Melton BS and Paragon Bank. Both providers have lower opening deposit requirements at £25 and £1 respectively. While Melton BS pays interest yearly, Paragon Bank allows its customers to choose this to be monthly or on anniversary.

Santander’s eISA rate of 0.70% is 0.15% off the top rate on the market and is beaten by five different providers. It is, however, matched by SAGA, Nationwide BS, and Marcus by Golmand Sachs.

To compare these offers in more detail, consider using our charts. Please note our charts are automatically set up to exclude restricted accounts. Therefore, if you would like to find out more about Santander’s 123 eISA, revise your search via the “Full Search” button.