Santander UK increases interest rates on two savings accounts – savers can earn up to 5.6 per cent

Santander’s one-year fixed rate ISA now pays 5.60 per cent AER tax-free, fixed until October 1, 2024.

The bank’s two-year fixed rate ISA now pays 5.45 per cent AER tax-free. This is fixed until October 1, 2025.

​Santander is also offering a £50 e-voucher to customers switching in an ISA with at least £10,000 in value from another provider.

Customers can open a fixed rate ISA online or in-branch.

They must be a UK resident aged 16 or older.

Santander UK says savers can open an account with £500 or more, while the maximum balance at any time is £2million.

The full ISA allowance for the 2023/24 tax year is £20,000, so the maximum amount a person can pay in between now and April 5, 2023 is £20,000.

This will reset from April 6 to a new £20,000 allowance.

However, this is the full ISA allowance and applies across all ISAs for the tax year.

Savers can also only pay into one cash ISA within the same tax year.

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Elsewhere this week, Yorkshire Building Society has launched a new regular savings account which pays a variable interest rate of seven per cent.

Customers can deposit up to £500 a month into the limited issue Loyalty Regular Saver account.

Chris Irwin, director of savings at Yorkshire Building Society, said: “We’re really proud that this new account, which comes with a highly competitive interest rate and a generous monthly deposit limit is another example of how we recognise the loyalty of our valued savers.

“Previous issues of this account have proved popular with savers and we’re sure this latest edition will be equally as well received.”