Santander has pulled its best-buy tax-free cash Isa to anyone who does not bank with it.
Its Flexible Isa pays 3.2% but, from today, is only available to anyone with a Santander or Alliance & Leicester current account, or to anyone applying for one (see the Cash Isas guide).
What's more, this must be your main current account meaning anyone switching must also transfer their direct debits and standing orders.
The Isa, also available via Santander-owned Alliance & Leicester, guarantees to be 2.7 percentage points above Bank of England base rate (currently 0.5%) for a year, meaning the rate will then drop. It is not open to transfers from old Isas
The next best Isa comes from Barclays which pays 3.1%. It includes a bonus of one percentage point for a year.
Santander says the decision has been made "to reward loyal customers". Both it and Alliance & Leicester have good current account options, including a £100 bonus on opening (see the Best Bank Accounts guide).
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