Best buy ISA for is for customers only
Bank withdraws top offer for non-current account holders
Santander has stopped offering its best buy ISA to UK savers who do not have a current account with the bank group.
The step continues its strategy of building market share by cross-selling products to existing customers.
The Spanish banking groups says its Flexible ISA savings account, available from both Santander and Alliance & Leicester, had consistently headed the best buy tables since it was first launched in February.
It initially offered a rate of 3.5%, fixed for the first 12 months. Thus has now been cut to 3.2%.
The ISDA offer will now only be open to people hold their main current account with Santander or Alliance & Leicester, or if they switch their current account to the group.
Reza Attar-Zadeh, director of savings and investments at Santander, commented: “Flexible ISA has been a fantastic success throughout the ISA season, offering customers one of the best rates on the market for their cash ISA subscription. This latest offering cements our continued approach of rewarding loyalty and that the more business you do with us, the more we will offer you in return.”
The group’s decision to limit the Flexible ISA to its current account customers is the latest in a string of initiatives to reward customer loyalty.
It has recently launched the Zero Current Account, which does not have authorised or unauthorised overdraft charges, and does not levy fees for payments that bounce, for people who have either a mortgage or investment product with it.
The bank group also waived the 3% balance transfer fee for mortgage, current account and investment customers who take out its Zero credit card, and it does not charge booking fees on mortgages for people who hold their main current account with the group.