Spotlight on: Santander's loyalty tracker bond

Kate Hughes
Saturday 31 July 2010 00:00 BST
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The deal

From 2 August, Santander is offering existing customers 3 per cent interest on savings with its Loyalty Tracker, paying a variable 2.50 per cent above the Bank of England base rate until September 2011. Those without a Santander account will be offered 2.80 per cent.

Good points

For those trying to wring out the best rate for their savings, this competitive rate will also make the most of any interest rate rises over the next year.

Bad points

This tracker is available only to those whose main current account, mortgage or investment account is with Santander, the minimum investment is a significant £10,000 and you won't be able to withdraw any of your cash until the end of September 2011. Bear in mind that this is a variable rate which could reduce over time. The best fixed-rate deal over a year is slightly higher, at 3.10 per cent, from ICICI Bank.

Conclusion

It's an attractive deal for existing Santander customers – of whom there are now many.

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