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What is a fixed rate ISA?

Fixed rate cash ISAs are a great choice if you're interested in taking full advantage of your cash ISA allowance and you have enough spare money to lock away for one to five years. Often fixed rate cash ISAs offer higher interest rates than instant access ISAs. View today's best rates below or read our fixed rate ISA guide to learn more.

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Browse Fixed Rate ISA Terms

Best Fixed ISA Rates

  • Paragon Bank Logo
    Paragon Bank 5 Year Fixed Rate Cash ISA FSCS logo
    FSCS logo
    AER
    1.95%
    Account Type
    Cash ISA
    Notice / Term
    5 Year Bond
    Interest Paid
    Anniversary
    Opening Account
    Available Online Not Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 1.95% paid at £500
    AER 1.95% paid at £500
    Interest Paid Anniversary
    Interest payment Interest can be paid away or compounded
    Min Opening Amount £500
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    Earlier access subject to 365 day loss of interest.
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account pending instructions/withdrawal

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid tax free

    Opening Restrictions

    N/A

    ISA Information

    Transfers In - Cash ISAs
    Transfers In - Stocks & Shares ISAs
    Transfers In - Help to Buy ISAs
    Additional Permitted Subscription ISA
    Transfer Notes -
    Flexible Rules Apply
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    N/A
  • Paragon Bank Logo
    Paragon Bank 5 Year Fixed Rate Cash ISA FSCS logo
    FSCS logo
    AER
    1.95%
    Account Type
    Cash ISA
    Notice / Term
    5 Year Bond
    Interest Paid
    Monthly
    Opening Account
    Available Online Not Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 1.93% paid at £500
    AER 1.95% paid at £500
    Interest Paid Monthly
    Interest payment Interest can be paid away or compounded
    Min Opening Amount £500
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    Earlier access subject to 365 day loss of interest.
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account pending instructions/withdrawal

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid tax free

    Opening Restrictions

    N/A

    ISA Information

    Transfers In - Cash ISAs
    Transfers In - Stocks & Shares ISAs
    Transfers In - Help to Buy ISAs
    Additional Permitted Subscription ISA
    Transfer Notes -
    Flexible Rules Apply
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    N/A
  • Paragon Bank Logo
    Paragon Bank 3 Year Fixed Rate Cash ISA FSCS logo
    FSCS logo
    AER
    1.85%
    Account Type
    Cash ISA
    Notice / Term
    3 Year Bond
    Interest Paid
    Anniversary
    Opening Account
    Available Online Not Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 1.85% paid at £500
    AER 1.85% paid at £500
    Interest Paid Anniversary
    Interest payment Interest can be paid away or compounded
    Min Opening Amount £500
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    Earlier access subject to 270 day loss of interest.
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account pending instructions/withdrawal

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid tax free

    Opening Restrictions

    N/A

    ISA Information

    Transfers In - Cash ISAs
    Transfers In - Stocks & Shares ISAs
    Transfers In - Help to Buy ISAs
    Additional Permitted Subscription ISA
    Transfer Notes -
    Flexible Rules Apply
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    N/A
  • Paragon Bank Logo
    Paragon Bank 3 Year Fixed Rate Cash ISA FSCS logo
    FSCS logo
    AER
    1.85%
    Account Type
    Cash ISA
    Notice / Term
    3 Year Bond
    Interest Paid
    Monthly
    Opening Account
    Available Online Not Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 1.83% paid at £500
    AER 1.85% paid at £500
    Interest Paid Monthly
    Interest payment Interest can be paid away or compounded
    Min Opening Amount £500
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    Earlier access subject to 270 day loss of interest.
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account pending instructions/withdrawal

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid tax free

    Opening Restrictions

    N/A

    ISA Information

    Transfers In - Cash ISAs
    Transfers In - Stocks & Shares ISAs
    Transfers In - Help to Buy ISAs
    Additional Permitted Subscription ISA
    Transfer Notes -
    Flexible Rules Apply
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    N/A
  • Aldermore Logo
    Aldermore 3 Year Fixed Rate Cash ISA FSCS logo
    FSCS logo
    AER
    1.70%
    Account Type
    Cash ISA
    Notice / Term
    3 Year Bond
    Interest Paid
    Anniversary
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 1.70% paid at £1K
    AER 1.70% paid at £1K
    Interest Paid Anniversary
    Interest payment Interest can be paid away or compounded
    Min Opening Amount £1,000
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    Earlier access on 180 day loss of interest.
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account pending instructions/withdrawal

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid tax free

    Opening Restrictions

    N/A

    ISA Information

    Transfers In - Cash ISAs
    Transfers In - Stocks & Shares ISAs
    Transfers In - Help to Buy ISAs
    Additional Permitted Subscription ISA
    Transfer Notes ISA transfers forms within 10 business days.
    Flexible Rules Apply
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    N/A
  • Aldermore Logo
    Aldermore 3 Year Fixed Rate Cash ISA FSCS logo
    FSCS logo
    AER
    1.70%
    Account Type
    Cash ISA
    Notice / Term
    3 Year Bond
    Interest Paid
    Monthly
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 1.69% paid at £1K
    AER 1.70% paid at £1K
    Interest Paid Monthly
    Interest payment Interest can be paid away or compounded
    Min Opening Amount £1,000
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    Earlier access on 180 day loss of interest.
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account pending instructions/withdrawal

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid tax free

    Opening Restrictions

    N/A

    ISA Information

    Transfers In - Cash ISAs
    Transfers In - Stocks & Shares ISAs
    Transfers In - Help to Buy ISAs
    Additional Permitted Subscription ISA
    Transfer Notes ISA transfers forms within 10 business days.
    Flexible Rules Apply
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    N/A
  • Paragon Bank Logo
    Paragon Bank 2 Year Fixed Rate Cash ISA FSCS logo
    FSCS logo
    AER
    1.70%
    Account Type
    Cash ISA
    Notice / Term
    2 Year Bond
    Interest Paid
    Anniversary
    Opening Account
    Available Online Not Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 1.70% paid at £500
    AER 1.70% paid at £500
    Interest Paid Anniversary
    Interest payment Interest can be paid away or compounded
    Min Opening Amount £500
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    Earlier access subject to 180 day loss of interest.
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account pending instructions/withdrawal

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid tax free

    Opening Restrictions

    N/A

    ISA Information

    Transfers In - Cash ISAs
    Transfers In - Stocks & Shares ISAs
    Transfers In - Help to Buy ISAs
    Additional Permitted Subscription ISA
    Transfer Notes -
    Flexible Rules Apply
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    N/A
  • Paragon Bank Logo
    Paragon Bank 2 Year Fixed Rate Cash ISA FSCS logo
    FSCS logo
    AER
    1.70%
    Account Type
    Cash ISA
    Notice / Term
    2 Year Bond
    Interest Paid
    Monthly
    Opening Account
    Available Online Not Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 1.69% paid at £500
    AER 1.70% paid at £500
    Interest Paid Monthly
    Interest payment Interest can be paid away or compounded
    Min Opening Amount £500
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    Earlier access subject to 180 day loss of interest.
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account pending instructions/withdrawal

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid tax free

    Opening Restrictions

    N/A

    ISA Information

    Transfers In - Cash ISAs
    Transfers In - Stocks & Shares ISAs
    Transfers In - Help to Buy ISAs
    Additional Permitted Subscription ISA
    Transfer Notes -
    Flexible Rules Apply
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    N/A
  • Aldermore Logo
    Aldermore 2 Year Fixed Rate Cash ISA FSCS logo
    FSCS logo
    AER
    1.60%
    Account Type
    Cash ISA
    Notice / Term
    2 Year Bond
    Interest Paid
    Anniversary
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 1.60% paid at £1K
    AER 1.60% paid at £1K
    Interest Paid Anniversary
    Interest payment Interest can be paid away or compounded
    Min Opening Amount £1,000
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    Earlier access on 180 day loss of interest.
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account pending instructions/withdrawal

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid tax free

    Opening Restrictions

    N/A

    ISA Information

    Transfers In - Cash ISAs
    Transfers In - Stocks & Shares ISAs
    Transfers In - Help to Buy ISAs
    Additional Permitted Subscription ISA
    Transfer Notes ISA transfers forms within 10 business days.
    Flexible Rules Apply
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    N/A
  • Aldermore Logo
    Aldermore 2 Year Fixed Rate Cash ISA FSCS logo
    FSCS logo
    AER
    1.60%
    Account Type
    Cash ISA
    Notice / Term
    2 Year Bond
    Interest Paid
    Monthly
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 1.59% paid at £1K
    AER 1.60% paid at £1K
    Interest Paid Monthly
    Interest payment Interest can be paid away or compounded
    Min Opening Amount £1,000
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    Earlier access on 180 day loss of interest.
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account pending instructions/withdrawal

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid tax free

    Opening Restrictions

    N/A

    ISA Information

    Transfers In - Cash ISAs
    Transfers In - Stocks & Shares ISAs
    Transfers In - Help to Buy ISAs
    Additional Permitted Subscription ISA
    Transfer Notes ISA transfers forms within 10 business days.
    Flexible Rules Apply
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    N/A

Select a Savings Account

Note

Eligible deposits with UK institutions are protected by the Financial Services Compensation Scheme up to a maximum level of protection of £85,000 per person per institution.

Disclaimer

All rates subject to change without notice. Please check all rates and terms before investing or borrowing.

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A guide to fixed rate ISAs

Leanne Macardle

Leanne Macardle

Editor

At a glance

  • Fixed rate cash ISAs tend to pay higher rates of interest than easy access or notice ISAs, and unlike with a variable rate account, the interest rate cannot change during the fixed term
  • Make sure you can commit your money for the full term, as early access will usually result in a hefty penalty and sometimes also closure of the account
  • In a similar vein, not all accounts will allow you to add funds after opening or accept transfers in from existing ISAs, so check the restrictions before you commit
  • You can hold more than one cash ISA at a time, but you can't open more than one per tax year
  • You can only invest up to the maximum ISA allowance per tax year, but it is possible to transfer funds from previous years without limit
  • Tax advantages will depend on your individual circumstances and may change in the future

Advantages of Fixed Rate ISAs

Saving in a fixed rate ISA has the additional benefits of appealing interest rates and security – if you think rates are going to go down soon, you can lock into a higher rate for a year or more. This can be especially beneficial for existing ISA pots that might be currently languishing in easy access accounts paying low rates.

Banks and building societies feel comfortable paying a higher interest rate on fixed rate ISAs than on an instant access ISA, because they know that your money will be invested with them for the duration of the term. Easy access ISAs offer no such guarantee.

How many fixed rate ISAs can I have?

Anyone over the age of 16 who is resident in the UK can open a cash ISA. However, you will only be able to open one cash ISA per tax year, and this includes Help to Buy ISAs. So, if you're just starting out, you'll have to decide whether you want to get a fixed rate cash ISA first, or an easy access version. Some providers allow you to invest in both fixed and variable rates within the same ISA account which can give extra flexibility; check the product details closely.

Any cash ISAs opened in previous tax years are irrelevant, as you can have as many ISAs as you want – provided you adhere to the general ISA restrictions. Note that you can open a cash, stocks & shares, innovative finance and lifetime ISA in the same tax year, as long as you don't exceed the overall ISA allowance, as these are considered separate ISA types. A Help to Buy ISA, however, is considered a cash ISA.

Once you've decided on the best fixed rate cash ISA for you, simply contact the provider to find out what you need to do. The providers' permitted account opening methods are clearly displayed on our results section, and some accounts may even have a orange button that makes it easy for you to click through and apply.

Depositing into a fixed rate ISA

The annual ISA allowance for both the 2018-2019 tax year and 2019-2020 has been set at £20,000. This means you can put this amount of new money into an ISA during the tax year. However, you can still transfer previously accumulated ISA funds into a new fixed rate ISA, so you're not entirely limited to the annual allowance. Having said that, not all ISAs allow transfers in from existing accounts, and those that do allow ISA transfers in may not allow them from all account types, so be sure to check this before you decide.

Once you've opened an account and the initial deposit and/or transfer has been made, you may not be able to make any further additions to your fixed rate ISA. Sometimes a provider will allow you to make further contributions for a limited period and/or while the ISA remains on general sale, but once it is withdrawn you will be unable to add to your pot. Always check the details so you know what your options are.

Early access penalties

You can withdraw your money from a fixed rate ISA, but this will usually be at the expense of a penalty.All cash ISAs allow you to transfer your money into another ISA at any time. However, they don't have to allow you to withdraw your money directly (in order to make a withdrawal, you may have to transfer your money to an easy access ISA first)

Either way, if you do need to access money held in a fixed rate ISA before the end of its term, you may well have to forfeit a fair amount of interest. Generally, interest penalties will see you lose a set number of days' interest, although some providers ask for a tapered amount depending on when you need to access your cash and the length of term remaining.

Less commonly, some ISAs may charge a flat fee instead, such as £50. While this might at first glance appear off-putting, on larger balances a £50 fee could actually be cheaper than an interest penalty. Just remember that early access penalties can be a common feature of fixed rate ISAs, so you may want to look elsewhere, such as at a variable rate ISA, if you think you might need access during the term.

What happens to a fixed rate ISA when someone dies?

If the holder dies before the fixed ISA matures then it will no longer qualify as an ISA from the date of death. Any beneficiaries from the account-holder’s estate will not be able to access the funds until either their executor closes it or the administration of their estate is completed.

While there will be no Income Tax or Capital Gains Tax payable up to that date the ISA will form part of your estate for the purposes of Inheritance Tax.

If you are survived by a spouse or civil partner then they can inherit your fixed rate ISA and retain the tax benefits, but this must be done within three years of the holder’s death.

Which fixed rate ISA should I choose?

You'll want to pick the term of your ISA based on when you may want access again. If you think rates will rise in the near future, you may want to go for a one-year ISA, whereas if rates are likely to go down, you’ll want to secure your rate for as long as possible.

Once you've picked a term, all that's left is to compare fixed rate ISAs on the basics: rate, investment limits, accessibility and account management options. Remember that the best rate ISA isn't automatically the most suitable for you, depending on its other features.

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