Santander extends cash ISA range

Santander is extending its cash ISA deals into May in a bid to help savers make the most of their tax free allowance.

The range includes a two year fixed rate Major ISA, one year fixed rate ISA, Direct ISA Issue 9 and Super Direct ISA Issue 5.

Research by the bank suggests that just 17 per cent of ISA holders are expected to use their entire allowance for the year, missing out on an estimated £242 million of tax free interest.

The cash ISA allowance for 2012-13 has increased by £300 to £5,640.

Santander’s products allow existing ISA money to be transferred in and are available to new and existing customers.

Matt Hall, head of savings, said: “Investing at the beginning rather than the end of a new tax year is always going to be better for maximising returns.

“To encourage savers to do this we’re extending our very popular cash ISA range into May, offering the same great rates.”

The Major ISA offers four per cent AER and also pays an additional one-off bonus of 0.1 per cent if Rory McIlroy wins an eligible golf Major tournament.

Free ISA guide: Click here