Compare Fixed Rate Cash ISAs

If you want to take advantage of your 2014/2015 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 £15,000 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. Great rate!

    Leading rate available for customers wanting to apply online and access your account (once the fixed term ends)

    Great for
    Opening an account with just £1
    Guaranteed interest rate of 1.65% AER tax free for the term of your ISA as long as your money is kept in the ISA for the fixed term
    Open your ISA online or by phone and once it's set up you can make unlimited deposits within the next 30 days up to the maximum allowance of £15,000
    But be aware that
    If you close your account or transfer your money out of it during the fixed term, Tesco Bank will charge you a fee equal to 30 days interest on the balance of your account
    Once you have paid in your full ISA allowance you won't be able to replace any money withdrawn in the same tax year
    Available to UK residents aged 18 or over
  2. Extra Offers

    Open a Virgin savings account and get access to offers from the Virgin family

    Great for
    Opening an account with just £1
    Transferring existing ISA balances
    A choice between monthly or annual interest
    But be aware that
    This account is not suitable for regular deposits
    Withdrawals are subject to 60 days' loss of interest on the amount withdrawn
    • Provider/Product name 1 Year Fixed Rate ISA

      Saga

      1 Year Fixed Rate ISA

    • Interest rate (AER) 1.55% Fixed
    • Min/Max opening amount £1 to £ no limit
    • Notice / Term Term: 1 year bond
    • Account type Fixed Rate Cash ISA Transfer In
    • Access Internet Post Telephone In Branch
    • Go to site

    Great for
    1.55% AER fixed
    Applying online or by phone
    Save tax free up to the ISA allowance of £15,000 (less any amount invested in a stocks & shares ISA in the same tax year) plus transfers in from previous tax years as long as the account remains open
    But be aware that
    Withdrawals are allowed subject to a loss of tax free interest equivalent to 90 days. This will be deducted from the account balance and could result in you getting back less than you deposited
    Once you have paid in your full ISA allowance, you won't be able to replace any money withdrawn in the same tax year
    Available to UK residents aged 50 or over only
  3. 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
  4. Savers Prize Draw

    Three top prizes of £300,000 to be won in the February Superdraw

    Great for
    Save up to your ISA allowance of £15,000 for the 2014/15 tax year (increased from 1st July) plus transfers in from previous tax years
    Cash ISA transfers in benefit from the Halifax ISA Promise
    Halifax Savers Prize Draw: Register by 31st January and hold £5,000+ in qualifying Halifax and/or Bank of Scotland savings accounts for the whole of January. Customers living in England, Wales & Scotland aged 18+ only (not NI)
    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 £15,000 allowance in a cash ISA, a stocks and shares ISA or a mix of the two per tax year
  5. Great for
    Fixed term ISA savers
    Transferring existing ISA balances
    But be aware that
    Withdrawals are not permitted within the fixed term

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

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

    • Provider/Product name 2 Year Fixed Rate ISA

      AA

      2 Year Fixed Rate ISA

    • Interest rate (AER) 2.00% Fixed
    • Min/Max opening amount £1 to £ no limit
    • Notice / Term Term: 2 year bond
    • Account type Fixed Rate Cash ISA Transfer In
    • Access Internet Post Telephone In Branch
    • Go to site

    Market leading

    Market leading 2 year fixed rate ISA

    Great for
    2.00% tax free AER fixed
    Applying online or by phone
    Save tax free up to the ISA allowance of £15,000 (less any amount invested in a stocks & shares ISA in the same tax year) plus transfers in from previous tax years as long as the account remains open
    But be aware that
    Withdrawals are allowed subject to a loss of tax free interest equivalent to either 90 or 180 days depending on the remaining term. This will be deducted from the account balance and could result in you getting back less than you deposited
    Once you have paid in your full ISA allowance, you won't be able to replace any money withdrawn in the same tax year
  1. 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
  2. Savers Prize Draw

    Three top prizes of £300,000 to be won in the February Superdraw

    Great for
    Save up to your ISA allowance of £15,000 for the 2014/15 tax year (increased from 1st July) plus transfers in from previous tax years
    Cash ISA transfers in benefit from the Halifax ISA Promise
    Halifax Savers Prize Draw: Register by 31st January and hold £5,000+ in qualifying Halifax and/or Bank of Scotland savings accounts for the whole of January. Customers living in England, Wales & Scotland aged 18+ only (not NI)
    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 £15,000 allowance in a cash ISA, a stocks and shares ISA or a mix of the two per tax year
  3. Great for
    Fixed term ISA savers
    Transferring existing ISA balances
    But be aware that
    Withdrawals are not permitted within the fixed term

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
    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
  2. Savers Prize Draw

    Three top prizes of £300,000 to be won in the February Superdraw

    Great for
    Save up to your ISA allowance of £15,000 for the 2014/15 tax year (increased from 1st July) plus transfers in from previous tax years
    Cash ISA transfers in benefit from the Halifax ISA Promise
    Halifax Savers Prize Draw: Register by 31st January and hold £5,000+ in qualifying Halifax and/or Bank of Scotland savings accounts for the whole of January. Customers living in England, Wales & Scotland aged 18+ only (not NI)
    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 270 days' tax-free interest
    You can save up to your maximum £15,000 allowance in a cash ISA, a stocks and shares ISA or a mix of the two per tax year
  3. Great for
    Fixed term ISA savers
    Transferring existing ISA balances
    But be aware that
    Withdrawals are not permitted within the fixed term

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

  1. Market leading

    Market leading five year fixed rate ISA

    Great for
    Opening an account with just £1
    Transferring existing ISA balances
    A choice between monthly or annual interest
    But be aware that
    This account is not suitable for regular deposits
    Withdrawals are subject to 180 days' loss of interest on the amount withdrawn
  2. Great for
    Fixed term ISA savers
    Transferring existing ISA balances
    But be aware that
    Withdrawals are not permitted within the fixed term
  3. Savers Prize Draw

    Three top prizes of £300,000 to be won in the February Superdraw

    Great for
    Save up to your ISA allowance of £15,000 for the 2014/15 tax year (increased from 1st July) plus transfers in from previous tax years
    Cash ISA transfers in benefit from the Halifax ISA Promise
    Halifax Savers Prize Draw: Register by 31st January and hold £5,000+ in qualifying Halifax and/or Bank of Scotland savings accounts for the whole of January. Customers living in England, Wales & Scotland aged 18+ only (not NI)
    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 365 days' tax-free interest
    You can save up to your maximum £15,000 allowance in a cash ISA, a stocks and shares ISA or a mix of the two per tax year

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 £15,000 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.

Equally, with inflation still running high, it is vital for you to make your money work as hard as it possibly can by getting the best rates available – and this is where a fixed-rate ISA can help.

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 T's and C's 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. You can currently earn more than 3% on a one-year fixed-rate cash ISA.

If you are comfortable with cashing in on a high rate of interest now, even though rates could move against you in the future, a fixed-rate cash ISA could well be the account for you.

But if you are not happy taking this risk, 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 T's and C's for each account – making it easy to compare deals to find the right one for you.

 
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