What is the best Santander Fixed Rate ISA?

What is Santander’s best fixed rate ISA?

Santander’s current best Fixed Rate ISA is their 1-year Fixed Rate Cash ISA offering 3.60% AER (fixed). But there are other Fixed Rate ISAs offering higher rates than this that are currently on the market. If you’re looking for the top Fixed Rate ISA on the market, it is often worth looking beyond high street banks, as these don’t always offer the most competitive rates. 

What are the current Santander fixed rate ISAs?

Santander currently offers two Fixed Rate ISAs; their 1-year Fixed Rate ISA and their 2-year Fixed Rate ISA. Once the fixed term has ended on either account, your account will automatically mature into Santander ISA Saver, which offers a substantially lower interest rate of 1.00% AER/tax-free (variable).

1. 1 Year Fixed Rate ISA: 3.60% AER/tax-free (fixed). Requires a minimum opening deposit of £500, or you can open with a £0 balance if you are transferring in funds from an existing ISA with a balance of £500. But keep in mind that you can't add more money after the pay-in window. If you’re transferring money from another ISA to the account, the funds need to be received within 30 days of your account being opened. As this is a fixed-rate account, you’ll be agreeing to lock away your money for a fixed period of 1 year. If you choose to withdraw your funds before this point, this will close the account and you’ll have to pay an early access charge equivalent to 120 days' interest.
2. 2 Year Fixed Rate ISA: 3.40% AER/tax-free (fixed). Requires a minimum opening deposit of £500, or you can open with a £0 balance if you are transferring in funds from an existing ISA with a balance of £500. But keep in mind that you can't add more money after the pay-in window. If you’re transferring money from another ISA to the account, the funds need to be received within 30 days of your account being opened. As this is a fixed-rate account, you’ll be agreeing to lock away your money for a fixed period of 2 years. If you choose to withdraw your funds before this point, this will close the account and you’ll have to pay an early access charge equivalent to 120 days' interest.

You can see Santander’s full list of Cash ISAs here

Source: Santander Fixed Rate ISAs. Rates accurate as of February 2025.

Can I withdraw money from a Santander fixed rate ISA?

Yes, you can withdraw your money from a Santander Fixed Rate ISA, but if you do this before the fixed term ends you’ll pay an early access charge. This is equivalent to 120 days' interest for both their 1 Year Fixed Rate ISA and their 2 Year Fixed Rate ISA. Up to 28 days before the fixed term ends, you can tell Santander what you want to happen to the money in your account. If you do nothing, on maturity the account will automatically become a Santander ISA Saver, which currently offers a substantially lower interest rate of 1.00% AER/tax-free (variable).

Can I transfer money into a Santander Fixed Rate ISA?

Yes, you can transfer money into a Santander Fixed Rate ISA, as long as Santander receives the transfer request within 14 days of opening your Santander ISA, and the funds are received within 30 days of your account being opened. You can transfer some or all the money that you’ve paid into the other ISA in previous tax years, as long as you are transferring a balance of at least £500. 

How to find the best Fixed ISA Rates

Many familiar, high-street banks offer Fixed Rate ISAs. Opening an account with them may seem the easiest option, but they don’t always offer the best rates. To find the best Fixed Rate ISAs, compare accounts from different providers, including smaller ones you might not have heard of before. As well as the rate, look at if the provider ticks other boxes, like having excellent customer service, or an easy-to-use savings app with intuitive savings features to help you save more.