Compare Fixed Rate Cash ISAs

If you want to take advantage of your 2015/2016 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.

 

One year fixed rate ISAs - featured accounts - Ordered by term

Apply for the accounts below today or see all fixed rate ISA accounts

  1. Expected Profit Rate

    Sharia compliant Fixed Rate Cash ISA and offers an expected profit rate of 1.90%

    Great for
    Quick and easy online application
    Invest as little as £1,000 and transfer existing ISA balances
    UK based ethical bank with full UK regulation. The bank operates under Islamic finance principles
    But be aware that
    Funds cannot be accessed until end of the term
  2. Great for
    The Online ISA account offers you the flexibility to spread your allowance across easy access and fixed rate products
    Flexibility to manage your money online 24/7
    But be aware that
    The Online ISA is provided by Family Investments. Savings in Post Office Money cash ISAs are deposited with Bank of Ireland UK
    If you wish to spread your ISA balance across both the variable and fixed rate accounts you will need to open the holding account first - this can easily be done as part of the online application
    A breakage charge will occur if you move money from the Fixed Rate account during the fixed term
  3. Great for
    Choose annual interest of 1.60% tax free /AER or monthly interest of 1.59% tax free /1.60% AER
    Save up to your ISA allowance of £15,240 for the 2015/16 tax year, plus transfers in from previous tax years. ISA transfers in benefit from the Halifax ISA Promise
    But be aware that
    All deposits need to be made within 60 days of account opening. No withdrawals allowed during the term of the product
    Early closure is allowed subject to the loss of 90 days’ tax-free interest
    You can save up to your maximum ISA allowance in a cash ISA, a stocks and shares ISA or a mix of the two per tax year
  4. Great for
    Fixed term ISA savers
    Transferring existing ISA balances
    But be aware that
    Withdrawals are not permitted within the fixed term
  5. Great for
    Opening and viewing your account online
    A choice between monthly or annual interest
    But be aware that
    Additional deposits are not permitted
    Early withdrawals are allowed subject to the loss of 120 days' interest
  6. Great for
    Transferring existing ISA balances
    No maximum deposit
    But be aware that
    Partial withdrawals are not permitted after the start date of your Fixed Rate ISA
    Early closure charges apply
  7. Great for
    Transferring existing ISA balances
    No maximum deposit
    But be aware that
    Partial withdrawals are not permitted after the start date of your Fixed Rate ISA
    Early closure charges apply

Two year fixed rate ISAs - featured accounts - Ordered by term

Apply for the accounts below today or see all fixed rate ISA accounts

  1. Great for
    Choose annual interest of 2.00% tax free /AER or monthly interest of 1.98% tax free /2.00% AER
    Save up to your ISA allowance of £15,240 for the 2015/16 tax year, plus transfers in from previous tax years. ISA transfers in benefit from the Halifax ISA Promise
    But be aware that
    All deposits need to be made within 60 days of account opening. No withdrawals allowed during the term of the product
    Early closure is allowed subject to the loss of 180 days tax-free interest
    You can save up to your maximum ISA allowance in a cash ISA, a stocks and shares ISA or a mix of the two per tax year
  2. Great for
    Fixed term ISA savers
    Transferring existing ISA balances
    But be aware that
    Withdrawals are not permitted within the fixed term
  3. Great for
    The Online ISA account offers you the flexibility to spread your allowance across easy access and fixed rate products
    Flexibility to manage your money online 24/7
    But be aware that
    The Online ISA is provided by Family Investments. Savings in Post Office Money cash ISAs are deposited with Bank of Ireland UK
    If you wish to spread your ISA balance across both the variable and fixed rate accounts you will need to open the holding account first - this can easily be done as part of the online application
    A breakage charge will occur if you move money from the Fixed Rate account during the fixed term
  4. Great for
    Annual interest rate of 1.75% tax free/AER Fixed for the term
    Deposits up to the 2015/16 ISA allowance of £15,240 (less any amount invested in a stocks and shares ISA this tax year) are allowed as long as the issue remains available
    Applying online or by post
    But be aware that
    Withdrawals are allowed subject to a charge. The charge will depend on the remaining term of the account and is the equivalent of either 90 or 180 days tax free interest
    The charge will be taken from the account balance and, depending on when the withdrawal is made, may result in you getting back less than you originally deposited
    You can save up to the maximum ISA allowance in a cash ISA, a stocks and shares ISA or any combination of the two in any tax year
  5. Great for
    A choice between monthly or annual interest
    But be aware that
    Additional deposits are not permitted
    Early withdrawals are allowed subject to the loss of 180 days' interest
  6. Great for
    Transferring existing ISA balances
    No maximum deposit
    But be aware that
    Partial withdrawals are not permitted after the start date of your Fixed Rate ISA
    Early closure charges apply
  7. Great for
    Transferring existing ISA balances
    No maximum deposit
    But be aware that
    Partial withdrawals are not permitted after the start date of your Fixed Rate ISA
    Early closure charges apply

Three year fixed rate ISAs - featured accounts - Ordered by term

Apply for the accounts below today or see all fixed rate ISA accounts

  1. Great for
    Fixed term ISA savers
    Transferring existing ISA balances
    But be aware that
    Withdrawals are not permitted within the fixed term
  2. Great for
    Transfers of your ISA subscriptions are allowed from any ISA provider
    Transfer-out can be made at the end of the term of the deposit
    The rate of interest is fixed for the entire period of the deposit and interest is paid tax free, that is free from UK Income Tax and Capital Gains Tax
    But be aware that
    Available to an individual, 18 years or over, who is ordinarily resident in the UK for tax purposes
    Transfer of the deposit can be made before the end of the term if 30 days’ notice is provided. There will be a loss of interest if early withdrawals/transfers are made
  3. Great for
    A choice between monthly or annual interest
    But be aware that
    Additional deposits are not permitted
    Early withdrawals are allowed subject to the loss of 180 days' interest

Five year fixed rate ISAs - featured accounts - Ordered by term

  1. Great for
    Transfers of your ISA subscriptions are allowed from any ISA provider
    Transfer-out can be made at the end of the term of the deposit
    The rate of interest is fixed for the entire period of the deposit and interest is paid tax free, that is free from UK Income Tax and Capital Gains Tax
    But be aware that
    Available to an individual, 18 years or over, who is ordinarily resident in the UK for tax purposes
    Transfer of the deposit can be made before the end of the term if 30 days’ notice is provided. There will be a loss of interest if early withdrawals/transfers are made
  2. Great for
    Fixed term ISA savers
    Transferring existing ISA balances
    But be aware that
    Withdrawals are not permitted within the fixed term

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 can make a real difference to your returns, as with an ordinary savings account, the Government takes 20% tax from a basic-rate taxpayer, rising to a hefty 40% for a higher-rate taxpayer and 45% for those if the top band.

In the current tax year, you can slot away up to £15,240 in a cash ISA, stocks and shares ISA, or split between the two.

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 MoneySuperMarket.com 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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