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FIXED RATE ISAS

Find the right fixed rate cash Isa for you

View our great rates 

Why look for a fixed rate ISA with MoneySuperMarket?

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    It doesn't take long

    You can quickly see a wide range of ISA deals all in one place.

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    See our best rates

    View our best rates for fixed rate ISAs, making it easy to find the right one for you.

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    Open your new account today

    Click through to the provider to make your application quickly and easily.

     

What is a fixed rate ISA?

A fixed rate ISA is a tax-free savings account where you get a guaranteed rate of interest for locking your money away for a set length of time. You can save up to £20,000 in any one cash ISA each tax year (which runs from April).

In some cases you may get a slightly higher rate of interest in a fixed rate compared to an instant access ISA. Fixed rates might be for one, two, three or five years for example.

How do fixed rate cash ISAs work?

  • Length of fixed rate

    Decide how long to fix for. You can typically opt for a period of between one and five years

  • Review fixed rates

    See our best fixed rate cash ISA deals from across the market

  • Select and apply

    Once you’ve made your choice, complete your application and save tax freen

What are the pros and cons of a fixed rate ISA?

There are a range of benefits - and drawbacks - to bear in mind with fixed rate ISAs. Here are some things to consider:

  • PROS

    • Rates may be higher than on instant access cash ISAs

    • Security of knowing the rate won’t change for the duration of the fixed term

    • Returns are tax-free

    •  

  • CONS

    • Must lock your cash away for a fixed period – the minimum being one year

    • There may be a fee charged if you need your cash before the term is up

    • Some fixed rate ISAs will not permit you to add funds once the account has been opened. Others will not accept transfers in

    •  

How to choose the best fixed rate ISA for you

The best fixed rate cash ISA for you will depend on a number of factors, including:

  • Interest rate

    You’ll want to lock into the highest possible fixed rate

  • Duration – or term

    Strike a balance between high rate and a fixed term you’re comfortable with

  • Access

    When will you need your money? Don’t fix and lose access if you need the cash

  • T&Cs

    Read the small print – are there penalties for early withdrawal? Can you add to your ISA?

What happens at the end of the fixed rate period?

At the end of the fixed term, you will be able to get your hands on your cash. You can either withdraw your money or transfer it to another fixed-rate cash ISA.

If you want a new fixed rate for your money this is a good time to reassess the market and check you’re getting a competitive rate. You also need to decide whether to lock your money away for the same length of time, or whether to go for a shorter or longer term deal.

You may also decide you want to move your money into a different kind of ISA, such as an instant access ISA.

 

 

What are the rules around fixed term cash ISAs?

Fixed rate cash ISAs should be straightforward. Here’s the key information you’ll need:

  • Individuals can put a maximum of £20,000 into ISAs every tax year. You can only open one cash ISA per tax year. If you’re just starting out, you’ll need to decide between a fixed-rate cash ISA and an easy-access cash ISA.

  • While rates can be better on fixed-rate ISAs, the trade-off is you’ll need to lock your money away. If you need to withdraw your money before the fixed term has come to an end, you’re likely to face early-access penalties.

  • If you want to transfer into a new cash ISA, be sure to follow the rules. Always contact the provider and fill out a transfer form. Don’t withdraw the money yourself, as your cash could lose its tax-free status. 

  • You can put money in to other types of ISA in any tax year – provided you don’t exceed the total £20,000 tax-free Isa savings in total. So you could, for example have up to £10,000 in a fixed rate cash ISA and £10,000 in a stocks and shares ISA.

How to find a fixed rate ISA with MoneySuperMarket

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    Browse our providers

    Just click the button below to see a list of all our cash ISA accounts

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    Review and choose

    View accounts from leading UK ISA providers and compare the rates and terms

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    Click through to provider

    When you find the cash ISA you want, click straight to the provider to apply

Reporting savings scams

We’re aware some fraudsters are trying to use the MoneySuperMarket brand to trick consumers into handing over money or financial details, by offering fake ISA and savings products with eye-catching rates. The best way to stop these scams is to report them. 

How do I report an ISA scam?

Check out our tips on how to keep you and your family safe from scams.

 

 

Phone Action Fraud on 0300 123 2040 to report fraud

If you don’t already have a cash Isa for the current tax year, you can open a fixed rate Isa – provided you are over 16 and resident in the UK. You can put away £20,000 in this tax year. You may be able to transfer funds from previous year’s Isas, but check the terms and conditions.

Compare deals with MoneySuperMarket and once you’ve made your choice, complete your application. 

You can then deposit your savings into that account, and your money will earn tax-free interest until the account matures. Note that once you’ve made that initial deposit, you may only be allowed to make additions for a limited period of 14 days. After that, further additions may not be permitted. 

As with any UK cash Isa, fixed rate Isas provided by banks and building societies are protected by the Financial Services Compensation Scheme, The FSCS covers £85,000 of savings per individual, per financial institution, should a provider go bust.

The right term for you will depend on when you think you might need to get your hands on your cash. At a time when interest rates are rising, you may want to go for a shorter fix, to ensure your Isa rate remains competitive.

If the account holder passes away before the end of the fixed rate term, it will no longer qualify as an Isa from the date of the death. Beneficiaries will only be able to access funds once the executor closes the account, or once the administration of the estate has been completed. An Isa will form part of your estate for the purposes of inheritance tax. If you have a spouse or civil partner, they can inherit your fixed rate Isa and keep the tax benefits. Your Isa will only remain open until three years and one day after your death.

In many cases, fixed rate cash Isas offer higher rates than those on instant access cash Isas. The interest rate is guaranteed for the length of the term. Providers are happy to pay better rates as they know how long they will have your money for. With easy access accounts, there is no such guarantee.

You can compare savings accounts using a number of factors. These include the interest rates they offer as well as how long the rate will last, the amount you might need to deposit in order to open the account, and how you can access the account. Once you’ve decided which account you want, simply click through and you’ll be taken to the provider’s website.

Not sure what type of account to go for? Our Savings Decision Tree can help you decide.

 

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