Savers who want to achieve a guaranteed tax-free return on their money may be interested in a fixed term cash ISA account. Terms for these accounts range from one to five years. Penalties often apply to those who access funds early, so it is important to make sure the term suits your needs and lifestyle. Here is a selection of the current best fixed cash ISA rates.
Birmingham Midshires – Five Year Fixed Rate ISA
This account pays 4.25% on its anniversary. A monthly interest option is available at 4.17%. Savers can invest a minimum deposit of £500, while further additions can be made whilst the issue remains open. Transfers in are also accepted. Early access is allowed, subject to loss of interest as follows: year 1, 365 days; year 2, 320 days; year 3, 270 days; year 4, 180 days; and year 5, 90 days. The account is available to savers aged 16 and over and can be operated by post only.
Halifax – Fixed Rate ISA Saver
This four year bond pays 4.25% on maturity, with interest compounded annually. Savers can make a minimum deposit of £500 but further additions are not allowed. Funds can be accessed early on closure only, subject to 180 days' loss of interest. Transfers in are accepted. The account can be operated in branch, by telephone or online by savers aged 16 and over.
Northern Rock – Fixed Rate Cash ISA Issue 146
This five year bond from Northern Rock pays an annual rate of 4.00%. Savers can invest a minimum deposit of £500 and transfers in are allowed. Further additions can be made up to 30 days after the issue has closed. Early access is allowed, subject to 180 days' loss of interest. Upon maturity, the deal converts to the 30 Day Cash ISA, which allows free access up to 30 days after maturity. The account is available to savers aged 16 and over and can be operated by post only.
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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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