Major Bank Unveils 4.5% Cash ISA for New Tax Year with Up to £400 Bonus

As the new tax year kicks off, Santander has launched an enticing range of ISAs offering a competitive 4.5% interest rate, giving savers an excellent opportunity to grow their money tax-free.

For the 2026/27 tax year, individuals can invest up to £20,000 in an ISA, with the cash component limited to £12,000 starting April 2027 due to changes announced in the recent Budget by Chancellor Rachel Reeves. This allowance can be divided between various ISA types, including cash ISAs and stocks and shares ISAs.

Santander’s latest promotion includes fixed-rate terms of one, two, three, and five years, all at a flat 4.5% interest rate. Moreover, savers depositing certain amounts can benefit from e-voucher bonuses, adding even more value to the offer.

To qualify for these bonuses, deposits must meet the following thresholds:

£10,000 to £24,999.99 earns a £50 voucher
£25,000 to £49,999.99 earns a £100 voucher
£50,000 to £99,999.99 earns a £200 voucher
Deposits of £100,000 or more receive vouchers up to £400

James McCaffrey, spokesperson for TotallyMoney, highlights the offer’s appeal but advises caution with fixed-term accounts. “Accessing your money before the term ends will incur fees; specifically, Santander charges the equivalent of 120 days’ interest if you close the account early," he explains. “It’s essential to shop around and compare all financial products to find the best fit for your needs.”

Personal finance expert Andrew Hagger from Moneycomms.co.uk praised the deal, stating, “Santander’s 4.5% ISA and accompanying voucher bonuses represent excellent value. The competition in this ‘ISA Golden Window’ continues to heat up, and this promotion is likely to attract many savers.”

With the fresh £20,000 ISA allowance now available, savers looking to maximize returns and benefit from bonuses should consider Santander’s new Cash ISA offer as the tax year begins.