Compare Fixed Rate Cash ISAs

If you want to take advantage of your 2016/2017 cash ISA allowance and have money you can afford to lock away for a few years, a fixed rate cash ISA could be ideal. It pays a guaranteed amount of interest for a set length of time.

You can invest up £15,240 in a cash ISA. Some accounts also allow you to transfer in money invested in the previous tax year so you can maximise returns on all your tax-free savings.

These are the best accounts available to open through MoneySuperMarket. We can show you all the accounts on the market, but we can only help you to open some of them.


Fixed Rate Cash ISAs – Ordered by term

A fixed rate cash ISA could be ideal if you want to take advantage of your annual tax-free ISA allowance, and you can afford to lock your money away for a few years. It pays a guaranteed rate of interest for a set length of time.

  1. Exclusive

    You won't find this account on any other comparison site

    Great for
    Start saving from £1 and choose between monthly or annual interest
    Transfer in existing ISA balances, to bring all your ISAs together
    Know what return you'll get with this fixed rate of interest
    But be aware that
    Not suitable for regular deposits. This is a limited issue so don't delay
    Withdrawals are subject to a charge equivalent to 60 days' loss of interest on the amount withdrawn
    The maturity date of this product is 24 July 2017
  2. Great for
    Manage your money with online and telephone banking
    Interest rate guaranteed for 12 months
    But be aware that
    Partial withdrawals are not permitted after the start date of your Fixed Rate ISA
    Early closure charges apply equal to 90 days interest on the balance of your account

Easy Access Cash ISAs – Ordered by rate (AER)

Easy access cash ISAs let you take advantage of your annual tax-free ISA allowance, and you can still have instant access to your cash.

  1. Great for
    Rate depends on the number of withdrawals
    0.75% Gross/AER variable if you make 4 or more withdrawals in a calendar year
    1.26% Gross/AER if you make 3 or less withdrawals in a calendar year
    Start saving from £1 and pay money in as often as you like. Transfer in your existing ISA balances using Virgin Money's ISA Transfer Service
    But be aware that
    If you make 4 or more withdrawals in a calendar year the rate reduces to 0.75% (AER) until the end of the year
    • Provider/Product name Cash ISA

      Sainsbury's Bank

      Cash ISA

    • Interest rate (AER) 1.20% Variable
    • Min/Max opening amount £500 to £ no limit
    • Notice / Term Notice Period: none
    • Account type Cash ISA Transfer In
    • Access Internet Post Telephone In Branch
    • Go to site

    Great for
    Transferring existing ISA balances
    Make multiple deposits up to the £15,240 annual allowance - or the full amount in one transaction
    For new and existing customers
    But be aware that
    Lower rate of 0.50% AER for balances that fall below £500
  2. Great for
    Opening an account with just £1
    Unlimited withdrawals without penalty
    Transferring existing ISA balances
    But be aware that
    Interest is paid annually

Not sure what account is right for you? Tell us a few details and we can help you decide



Fixed Rate ISA Guide

What are fixed rate cash ISAs?

When it comes to building up a nest egg, squirrelling money away into an individual savings account (ISA) is a complete no-brainer if you are a taxpayer as returns are tax-free.

This tax break is in addition to the new Personal Savings Allowance (PSA), which came into effect on April 6, 2016. All basic rate taxpayers can now earn £1,000 of savings interest a year without having to pay any tax on it. You’re a basic rate taxpayer in the 2016-17 tax year if your income is less than £43,000).

If you’re a higher rate taxpayer, paying tax at the 40% rate on an income between £43,001 and £150,000, you’re entitled to a lower PSA of £500 a year. 

If you’re an additional taxpayer earning £150,001 or more, you won’t get an allowance at all. 

In the current tax year, you can slot away up to £15,240 in a cash ISA, or a stocks and shares ISA, or an innovative finance ISA, or you can split your allowance between two or three of these.

With rock bottom interest rates, and no sign of any relief on the horizon, it’s well worth considering a fixed-rate ISA – rather than an easy access cash ISA – if you can afford to lock your money away, as the interest rates tend to be higher.

With a fixed rate cash ISA you earn a guaranteed rate of interest for a set period of time – giving you certainty of knowing what the rate will be.

What types of fixed rate cash ISA are available?

Fixed-rate cash ISAs tend to run for a period of between one and five years.  The longer you fix for, the higher the returns on offer. But you do need to ensure you can afford to lock your money away for the full term as you can’t usually access your money during the fixed term without incurring a hefty penalty. Some accounts will only allow you to get at your money in exceptional circumstances.

In addition, you need to be wary of fixing for too long, as while rates have been at rock bottom for several years now, they will climb upwards at some point. If your money is tied up for several years, you could risk finding yourself stuck in an uncompetitive account, and missing out when rates do eventually rise.

By contrast, if you opt for a shorter-term fixed-rate ISA, you can reassess the market regularly to check you’re getting the most competitive rate.

In addition, when choosing a fixed-rate ISA, you must not get fixated on the headline rate without looking beyond this to the Ts and Cs that come with the account.

Before opting for one of these accounts, you also need to be happy with the idea of locking away one lump sum payment at the beginning of the term – rather than drip-feeding cash into the account little by little each month.

If you don’t have a lump sum or are wanting an account that allows you to pay money in as and when you can, an easy access cash ISA would be a better option.

Also remember that any funds withdrawn from an ISA account cannot be replaced – unless you haven’t used your full ISA allowance.

What are the advantages of fixed rate cash ISAs?

With a fixed-rate cash ISA, the rate does not change for a set term, meaning you know exactly what you are getting on your money for that period – without having to worry about the rate falling.

Generally speaking, the rates paid are higher than on other accounts because you are tying your money up – and because the provider knows how long they will have your money for.

However, if you would prefer not to lock your money away in a fixed-rate ISA, you need to look at what other accounts are available, weighing up the pros and cons of each before making your decision.

Why should you use to compare fixed rate cash ISAs?

Given that there is such a wide choice of savings accounts – and then different types of ISA account within this, it’s vital to do your research.

The best way to do this is by making use of a free and independent online comparison service, such as MoneySuperMarket.

In just a few seconds, you can see all the different types of ISAs and rates available, as well as the Ts and Cs for each account – making it easy to compare deals to find the right one for you.


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