Santander releases new 3.5% cash Isa

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Santander releases new 3.5% cash Isa

Santander has launched a new flexible cash Isa with a market-leading interest rate of 3.5 per cent.

Customers can hold on to the rate for the next 12 months and because it is linked to the Bank of England's base rate, account holders will be able to take advantage of any moves upward that occur over the period.

According to moneynet.co.uk, this deal could offer savers a better option than has been available over the last 18 months and could encourage other banks and building societies to follow suit.

"When you weigh up that the best rate for a two-year fixed-rate Isa is 3.6 per cent with Aldermore and the best one-year fix at 3.33 per cent from Bank of Cyprus UK, it emphasises just how competitively priced this account is," said Andrew Hagger from the website.

Moneynet.co.uk also recently advised that savers should look at deals which require putting away a certain amount each month in order to access better interest rates.

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