COMPARE FIXED RATE CASH ISAs

Santander 1 Year Fixed Rate ISA

This account pays a generous 3.50% annual interest tax-free fixed for a year on a minimum investment of £2,500.

The maximum you can invest in this account this tax year is £5,640, although you can also transfer across balances held in existing ISAs.

If you are moving money from another ISA, cash ISA transfer in applications must be received within 14 days of opening.

You cannot make any withdrawals from this account so you must be certain you can afford to leave your money untouched for a year. If you have to close the account early for any reason, then a penalty equivalent to 90 days’ interest will be applied to the account.

When the account matures this ISA will become a variable rate ISA. Current rates on Santander’s variable rate ISA are 0.10% for balance of £1.00 rising to 0.50% for balances of £40,000 or more, so you may want to move your money once the fixed rate period ends.

The account can be operated in branch, by telephone and you can open the account online. You must be aged 16 or over and be a UK resident to open this ISA.

Virgin Money Fixed Rate Cash E-ISA Issue 9

This Fixed Rate Cash E-ISA pays 3.30% annual interest tax-free, with the rate fixed for a year.

The account is provided by Northern Rock which is now part of Virgin Money.

While this rate is competitive, there are other fixed rate ISAs available which pay higher returns. On the plus side, unusually for a fixed rate account, you can make withdrawals, although you will lose 60 days’ interest on the amount withdrawn. There is also a branch and postal version of the account available.

The account, which matures on 24th May 2013, can be opened with a minimum investment of just £1.00, and the maximum you can invest in the 2012/2013 tax year is £5,640. Remember that if you save £5,640 and then withdraw £1,000, you cannot reinvest the £1,000 you have withdrawn as you have already reached your full allowance for that tax year.

The account also accepts transfers from other providers and the maximum you can hold overall is £2 million.

Bear in mind, however, that only the first £85,000 will be protected by the Financial Services Compensation Scheme.

You must be aged at least 16 and a UK resident to apply for this account, which can only be held individually, not jointly.

Aldermore 1 Year Fixed Rate ISA

This account pays a 3.30% annual fixed interest tax-free for a year on a minimum investment of £1,000.

This rate is extremely competitive and the account is likely to prove popular, so don’t hang around if you want to invest, as it may not be around for long.

Balances below this amount will earn interest of 0.50%. Interest can be paid to any UK bank or building society account in your name.

The maximum amount you can invest in a cash ISA this tax year is £5,640, but you can also transfer cash ISAs held with other providers into this account. Once you have paid into the account, no additional deposits are allowed during the term.

Savers can choose to receive interest monthly rather than annually if they want, which may be useful for those looking to supplement their income.

You can make a withdrawal during the fixed rate term, but you will lose 120 days’ interest if you do this.

The account can be operated by internet, phone or post, and you must be aged at least 18 and a UK resident to be eligible to apply.

Chelsea BS Fixed Rate e-ISA to 31.5.13

This ISA pays a competitive 3.20% annual interest fixed until 31st May 2013. As the account is an ISA, returns are tax-free. You can only open the account online so it won't suit savers who want branch or telephone access. The minimum amount you can invest is £100 and the maximum tax-free savings allowance you can deposit is currently £5,640 in any tax year. You can also transfer in any ISA funds held in existing ISA accounts. Remember that you can only make deposits to the Fixed Rate e-ISA whilst the issue remains open to new investors.

No withdrawals are permitted during the fixed rate term and if you want to close the account early or transfer to another ISA provider, you will lose 90 days’ interest on the closing balance.

You’ll need to act quickly if you want to take advantage of this rate, as it is a limited offer and can be withdrawn at any time.

Bear in mind that if you invest your total cash ISA allowance and then withdraw some money, you will not be able to put money back into your cash ISA in that tax year. For example, based on a maximum subscription of £5,640, if you invest £500 in your cash ISA and then withdraw £200, you will only be able to invest a further £5,140 in that tax year.

Halifax ISA Saver Fixed

If you have money you can afford to lock away for a year, a fixed rate account is worth considering.

Only consider this account if you won’t need to access your savings as withdrawals aren’t permitted during the fixed term. If you need to close the account early you’ll lose 90 days interest.

The minimum investment is £500 and you can only make one deposit at the time the account is opened. As well as investing this year’s cash ISA allowance (up to £5,640) you can also transfer money invested in previous tax years.

Also, bear in mind that if you apply for a fixed account you will get the rate of interest that applies at the time your funds arrive in the account. This could be different from the rate available at the time you fill in your application form.

Santander 2 Year Fixed Rate Major ISA

This account pays a competitive 4.00% annual interest before tax fixed for two years. It pays an additional 0.10% tax free at maturity if Rory McIlroy wins an eligible golf Major, hence the account’s name.

You can save up to £5,640 in the 2012/2013 tax year, and the account also accepts transfers from existing ISAs. Cash ISA transfer in applications must be received within 14 days of opening the account.

No withdrawals can be made during the fixed rate term, so you must be certain you can afford to leave your money untouched for two years. You can close the account early if you need to, but you will lose 120 days’ interest on your savings and no 0.10% additional bonus will be paid.

The account can be operated in branch and by telephone and you can open the account online.

You need to be aged 16 or over and a UK resident to open this account.

Lloyds TSB Two Year Fixed Rate Cash ISA

Savers can earn a highly competitive 3.70% annual interest tax-free – for balances of £10,000 and over - with this ISA you must be prepared to lock up their savings for two years.

The account can be opened with a minimum investment of £3,000. Balances between £3,000 and £9,999 will earn 3.40% and you can transfer existing cash ISAs into the account. Unlike many fixed rate accounts, additional deposits are permitted throughout the fixed term.

You can withdraw your money if you want to, but you will lose 160 days’ interest on the amount withdrawn, so you shouldn’t choose this account if you know you will need access to your money over the next two years.

You cannot save more than £5,640 in the 2012/2013 tax year, even if you make a withdrawal. For example, if you save £5,640 and then take out £500, you cannot make another deposit until the following tax year.

Interest on this account is calculated on a daily basis and paid on the anniversary of account opening and when the account matures. You can apply for this account online.

BM Savings 2 Year Fixed Rate ISA

This account pays a generous 3.60% annual interest tax-free for two years, making it the market-leading fixed rate ISA over this time frame.

You can save a minimum of £500 up to a maximum of £5,640 in the current tax year, but this account also accepts transfers from existing ISAs.

You can make withdrawals if you need to, but these should be avoided as they will result in an interest penalty. If there are up to 2 years left for the bond to run, you will lose 180 days’ interest on the amount withdrawn, and if there is a year or less, you will lose 90 days’ interest on any money you take out.

Remember that if you pay in the maximum allowed into your ISA and then make a withdrawal, you cannot subsequently top up the account in the same tax year.

This account can only be operated by post, so it won’t suit savers who prefer online or branch access to their savings.

You must be aged 16 or over and a UK resident to open this account.

Governor Money Cambridge BS 2 Year Fixed Rate Cash ISA

This account pays a competitive 3.40% fixed rate of interest tax-free for two years on a minimum investment of £5,000.

You can invest up to £5,640 in a cash ISA this tax year, and this account also accepts transfers from existing ISAs. The maximum you can hold in the account is £50,000.

You will earn 0.50% variable on any money you pay into your account prior to the start date of the account, which is 28th May 2012.

You must be prepared to leave your money untouched for the two-year term of the account as no withdrawals are permitted. You can however, close the account early, but you will be have to pay an early closure charge of 120 days’ interest at 3.40%, plus a steep £15 admin charge on top of this.

The account matures on 28th May 2012 and interest is paid on the anniversary of you opening the account and on maturity.

You must be at least 18-years-old and a resident in the UK for tax purposes to be eligible to open this account.

The Cambridge is an independent building society with its own FSA authorisation and FSCS limit, meaning your deposits with it are protected up to £85,000.

Halifax ISA Saver Fixed

Halifax’s Five Year ISA Saver Fixed account pays a market leading 4.25% annual interest tax-free on a minimum investment of £500. You can invest up to £5,640 in the 2012/2013 tax year, and you can also transfer in any previous years’ cash ISAs that you have with another provider.

The account can be accessed in branch, by telephone and online.

As with most fixed rate savings accounts, you cannot make withdrawals during the term of the account, so you must be certain you can afford to leave your money untouched for five years.

You can, however, close your account at any time if you need urgent access to your cash for any reason, but you will lose 365 days’ interest.

Halifax also offers one, two, three and four year ISA Saver Fixed accounts, which pay 2.25%, 3.70%, 4.00% and 4.15% annual interest tax-free respectively. To be eligible to open any of these accounts, you must be a UK resident and aged 16 or over.

BM Savings 5 Year Fixed Rate ISA

BM Savings five-year fixed rate ISA pays a market-leading 4.25% annual interest tax-free on a minimum investment of £500.

You can deposit up to a maximum of £5,640 in the current tax year, and the account also accepts transfers from existing ISAs.

You can make withdrawals if you need to, but these should be avoided as they will result in an interest penalty. You will lose 365 days’ interest on the amount withdrawn if you take out money during the first year of the ISA, 320 days’ interest on any money you take out during the second year, 270 days’ interest in the third year, 180 days’ interest in the fourth year and 90 days’ interest in the final year.

You must be aged 16 or over and a UK resident to open this account.

The account can only be operated by post, so it won’t suit savers who prefer online or branch access to their savings. Bear in mind too, that while the rate is extremely competitive now, there is a risk it may not look quite as appealing in a few years’ time once interest rates start to rise.

Halifax ISA Saver Fixed

Halifax’s Four Year ISA Saver Fixed account pays an impressive 4.15% annual interest tax-free on a minimum investment of £500. You can invest up to £5,640 in the 2012/2013 tax year, and you can also transfer in any previous years’ cash ISAs that you have with another provider.

The account can be accessed in branch, by telephone and online. 

As with most fixed rate savings accounts, you cannot make withdrawals during the term of the account, so you must be certain you can afford to leave your money untouched for four years.

You can, however, close your account at any time if you need urgent access to your cash for any reason, but you will lose 320 days’ interest.

Halifax also offers one, two, three and five year ISA Saver Fixed accounts, which pay 2.25%, 3.70%, 4.00% and 4.25% annual interest tax-free respectively. To be eligible to open any of these accounts, you must be a UK resident and aged 16 or over.

Halifax ISA Saver Fixed

If you have money you can afford to lock away for a three years, a fixed rate account is worth considering.

Only consider this account if you won’t need to access your savings as withdrawals aren’t permitted during the fixed term. If you need to close the account early you’ll lose 270 days interest.

The minimum investment is £500 and you can only make one deposit at the time the account is opened. As well as investing your 2012/2013 cash ISA allowance (up to £5,640) you can also transfer money invested in previous tax years. 

Also, bear in mind that if you apply for a fixed account you will get the rate of interest that applies at the time your funds arrive in the account. This could be different from the rate available at the time you fill in your application form.

Virgin Money Fixed Rate Cash E-ISA Issue 10

This Fixed Rate Cash E-ISA pays a respectable 3.60% annual interest tax-free, with the rate fixed for three years.

The account is provided by Northern Rock which is now part of Virgin Money.

While this rate is competitive, there are other three-year fixed rate ISAs available which pay higher returns. On the plus side, unusually for a fixed rate account, you can make withdrawals, although you will lose 120 days’ interest on the amount withdrawn. There is also a branch and postal version of the account available.

The account, which matures on 24th May 2015, can be opened with a minimum investment of just £1.00, and the maximum you can invest in the 2012/2013 tax year is £5,640. Remember that if you save £5,640 in a tax year and then withdraw £1,000, you cannot reinvest the £1,000 you have withdrawn as you have already reached your full allowance for that tax year.

The account also accepts transfers from other providers and the maximum you can hold overall is £2 million.

Bear in mind, however, that only the first £85,000 will be protected by the Financial Services Compensation Scheme.

You must be aged at least 16 and a UK resident to apply for this account, which can only be held individually, not jointly.