Santander launches new cash ISA

A new cash ISA from Santander will aim to offer "a highly competitive rate" to savers.

Santander has unveiled details of a new individual savings account (ISA) due to be launched next week.

The Flexible ISA 2 can be opened from a minimum balance of £1 and guarantees to pay out at least 2.7 above the Bank of England base rate for the first 12 months.

Available to both new and existing Santander customers, the savings account will be launched on April 6th.

With interest rates currently at an all-time low of 0.5 per cent, the cash ISA currently has a return of 3.2 per cent, a figure Santander claims to be a market-leading rate.

The savings account is a continuation of the firm's Flexible ISA product which is now only available to those who have secured a branch appointment with the bank during the current tax year.

"We're pleased to continue offering a highly competitive rate for the new tax year, which currently remains market leading for savers looking for a flexible, easy-access cash ISA," Reza Attar-Zadeh, director of savings and investments for Santander, comments.

Virgin Money recently claimed the tax-free savings increase allowances outlined in last week's Budget will give consumers further incentive to place money into ISA accounts.

By Ashley King