What are the current Santander Cash ISA rates?

Key takeaways

• Current Rates: Santander offers Cash ISA rates ranging from 2.00%-4.10% AER.
• Top Option: The 2-5 Year Fixed Rate ISAs provides the highest return at 4.10% AER (fixed). However, this is not the most competitive option on the market. With the Tembo Fixed Rate ISA, you can earn 4.60% AER (fixed).
• Access Limits: Some accounts, like their Fixed Rate ISAs, require you to close the account if you want to withdraw money before the set term ends and you’ll be charged 120 days’ interest.
• Transfer Rule: Always use the official ISA transfer process rather than withdrawing funds manually to protect your tax-free status.

Remember, if you’re looking for the best Cash ISA for your savings, keep in mind that the big high-street banks don’t always offer the most competitive rates - take a look at our guide on the Best Cash ISAs in the UK for more information.

What are the Santander current ISA rates?

There are currently seven Santander Cash ISAs to choose from, including Easy Access, Fixed Rate ISAs, Junior ISAs and an Inheritance ISA, with interest rates ranging from 2.00%-4.10% AER.

Here’s a quick breakdown of the interest rates and key terms:

Source: Santander ISAs, accurate as of July 2026. Please note that Santander's AER rates for Fixed Rate ISAs are based on funds deposited by 1 July 2026. If you deposit money before or after this date, you may earn more or less interest than the rates shown above.

What is Santander’s best ISA rate?

Santander's best Cash ISA rate is currently 4.10% AER (fixed), available on their 2 Year, 3 Year and 5 Year Fixed Rate Cash ISAs. Their 1 Year Fixed Rate ISA comes in slightly lower at 4.00% AER. If you're happy to lock away your money for at least two years, then the higher rate could work well for you. But keep in mind that if you do need to withdraw early, you'll be charged 120 days' interest, and your account will be closed.

It's worth knowing that there are easy access Cash ISAs available on the market which offer similar, if not better, interest rates - and you'd get unlimited withdrawals too. Santander does have an easy-access Cash ISA, but at 2.00% AER/tax-free (variable), it's quite a bit lower than their fixed-rate offerings. If having easy access to your savings is important to you, it's definitely worth shopping around. Take a look at our guide on the best Cash ISAs in the UK to compare your options.

Is Santander a good ISA provider?

Santander offers a small range of Easy Access and Fixed Rate Cash ISA accounts, with a range of interest rates, minimum opening balance requirements and withdrawal allowances. However, in comparison to some other Cash ISA providers, Santander does not offer the most competitive interest rate on its fixed rate ISA at 4.00-4.10% AER (fixed) or its easy-access ISA at just 2.00% AER (variable).

On the plus side, Santander has a 4.35 out of 5 rating on Smart Money People based on 84 reviews, with customers often praising competitive fixed rates. However, some reviewers have flagged the early closure charges as a drawback. 

Can I have two ISAs with Santander?

Yes, you can have two ISAs with Santander, but there are some restrictions - you can only pay into one of your Santander Cash ISAs each tax year. You can open and pay into a Cash ISA with another provider, however. So if you’ve already paid into a Santander Cash ISA this year and you’ve spotted a better Cash ISA elsewhere, you could open a second account or even transfer your existing one to your new provider. You could also have a Lifetime ISA or stocks and shares ISA with a different provider, but regardless of the number of ISAs you have, you’ll still need to make sure your deposits across all your ISA accounts are still within your £20,000 ISA annual allowance.

Take a look at our guide on having more than one ISA to learn more

Will Santander increase ISA rates?

Santander may increase its interest rates, but it also could lower them - this will be largely influenced by what’s happening to interest rates in general. If interest rates start to come down, then Santander is likely to decrease its rates to reflect current interest rates. If you choose a fixed-rate Cash ISA, the interest rate will remain the same for the duration of the fixed term, regardless of any changes made to Santander’s advertised ISA rates. Once your fixed term has ended, you can open a new Santander Cash ISA or transfer your savings to another ISA provider. 

How to find the best Cash ISA rates

If your current bank also offers a Cash ISA, it can be tempting to open one with them. This may seem like the simplest option, but you could see yourself missing out on a more competitive interest rate and better service elsewhere. To really get the most out of your money, compare the best Cash ISA rates from across the market. There are so many providers to choose from, from banks and building societies to modern savings platforms. Choosing the right one can make a huge difference to your finances and help you reach your savings goals faster. When comparing providers, don’t just compare interest rates. You also want to consider customer service quality, how easy it is to access your funds, and whether there are any bonus features or benefits. 

Here at Tembo, for example, all our savings products can be managed via our award-winning savings app. As well as competitive interest rates, our customers benefit from intuitive money-saving app features, saving tips and tricks and - when you're ready to buy your first home or remortgage - fee-free mortgage advice.

How to transfer my Santander ISA to another provider

To transfer your Santander ISA to another provider, simply open a new ISA with your chosen provider and ask them to arrange the transfer for you. It's really important not to withdraw the money and move it yourself, as this could affect your savings' tax-free status and use up your ISA allowance for the year.

It's also worth noting that some providers, including Santander, require ISA transfers to be completed within 14 days of opening - so it's a good idea to get the ball rolling quickly once your new account is set up. Moving the money yourself could have an impact on your savings' tax-free status and this year's ISA allowance.

For example, if you’ve saved £30,000 in a Cash ISA over a number of years and you’d like to transfer your savings to a new provider, doing the transfer yourself would use up your full £20,000 ISA allowance for this year.

You’d have to wait until the following tax year to move the remaining £10,000 into your Cash ISA. Until then, you’d need to keep it in a traditional savings account, where your interest would be taxed.

By asking your new provider to make the transfer for you, you’ll protect your savings’ tax-free status and preserve any remaining ISA allowance for this year.

Frequently asked questions

Can I transfer a Cash ISA to Santander?

Yes, savers can transfer an existing Cash ISA from another provider to Santander. The transfer should always be arranged through Santander directly, not by withdrawing cash and paying it in manually.

Withdrawing and re-depositing the money yourself could use up part of this year's £20,000 ISA allowance and affect the tax-free status of savings built up in previous years. When transferring to a Santander Fixed Rate ISA, funds must be deposited within 14 days of opening the account. Before starting a transfer, it's worth comparing the rate Santander is offering against other Cash ISA providers on the market, as rates vary and some providers may offer more competitive returns — particularly on easy-access accounts.

What is the early withdrawal penalty on a Santander Fixed Rate ISA?

If a saver needs to access money in a Santander Fixed Rate ISA before the end of the fixed term, they will need to close the account entirely. Santander charges a penalty equivalent to 120 days' interest when an account is closed early.

To put that in context: on a £10,000 balance earning 4.10% AER (fixed), a 120-day interest charge would be £134. The larger the balance, the bigger the penalty. This makes Santander's fixed-rate ISAs less suitable for anyone who may need to dip into their savings before the term ends. Savers who want the freedom to access their money without penalty should look at an easy-access Cash ISA instead, though these typically come with a lower interest rate, especially in comparison to other easy access Cash ISAs on the market.

*Based on saving £100 at the beginning of each month for 5-years. Calculations show at month 61 (after 5-years) Tembo customers saving at 4.05% AER (variable) for the first 12 months, then 2.8% AER (variable) after that would have £242.49 on average more than saving with Barclays, HSBC, NatWest or Lloyds. Accurate July 2026.

**Fee-free mortgage advice is subject to eligibility, terms & conditions can be found here.