One major high street personal and business bank account provider has recently thrown down the ISA gauntlet, launching three new offerings that have demolished the competition, industry experts recently reported.
Spain-based banking giant Santander has grabbed headlines away from Cheshire Building Society with the launch of its new instant access ISA, which carries 3.3 per cent interest rate, the current best buy. Other new chart-topping offerings from the Spanish bank include a one-year ISA carrying a 3.5 per cent rate and a two-year deal at 4 per cent.
Other big players in the ISA market have also revealed their new offerings, such as Halifax, which announced competitive savings products that are still left in the dust by the Santander offerings. Halifax’s online ISA product offers 3 per cent on deposits in excess of £1, while its two-year deal boasts a 3.7 per cent rate of return.
However, Halifax, which is a subsidiary of Lloyds Banking Group and is currently 41 per cent taxpayer owned, did top the after-tax best buy tables on one particular offering. Its 5 year fixed ISA pays 4.5 per cent, which is the current rate to beat, yet uncertainties about the state of the economy have discouraged savers from taking up long-term deals.
Not everything is coming up roses for Santander, despite the trio of attractive ISA deals it now has on offer. The Spain-based bank has had to bounce back from a very rough 2010 where customer service issues dragged it down, making last year an uphill climb for the high street retailer – though many have said its arduous journey back into savers’ good graces is nearly complete.