Isa savers suffer cuts from Santander on one-year and two-year top deals

By MONEY MAIL

Updated: 06:15 EST, 12 September 2012

Savers looking to make the most of tax-free savings with cash Isas have suffered cuts on top fixed-rate deals.

Santander has cut the rate it pays to those willing to tie their money in for a year to 3 per cent tax-free from 3.2 per cent. Its two-year deal has seen a bigger cut, from 3.6 per cent to 3.3 per cent.

The best one-year fixed rate deal comes from Metro Bank at 3.25 per cent, available over the phone or internet.

Rates: Santander's one and two year fixed-rate Isas have seen big cuts

For two years, Santander’s 3.3 per cent is among the best deals, along with M&S Money at 3.25 per cent.

Halifax pays 3.75 per cent for three years, but has cut its variable rate easy-access cash Isas for new savers.

Its version now pays 2.6 per cent, down from 2.75 per cent, including a bonus for the first year.