Fixed rate cash ISAs usually beat the rates offered by more accessible cash ISAs, and you get the guarantee of a fixed rate for a term that suits you.

You save using part or all of your ISA allowance each tax year meaning any interest you earn is tax free. Your ISA allowance for the 2016/17 tax year is 15,240.

How to choose the best fixed rate cash ISA

There are three things to consider:

  1. 1.

    Choose the highest interest rate: this will give you the best return on your tax free savings

  2. 2.

    Choose a term that suits you: filter our table to show you terms between 1 year or less, 2 years, 3 years, 4 years and 5 or more years

  3. 3.

    Choose how much to save: some require you to open with a minimum deposit, such as 500, but do not let you add any more money until the term ends

You may need to visit a branch to open your chosen fixed rate cash ISA, as not all accounts in our table are available to apply for online.

Can anyone open a fixed rate cash ISA?

Yes, as long as you are a UK resident over the age of 16 and have not already paid into another cash ISA during the same tax year. Here is more information on opening a cash ISA.

Some fixed rate cash ISAs are only available to existing customers. These often come with higher interest rates compared to ISAs offered to new customers.

What if you already have a cash ISA?

If you have existing ISAs that you want to transfer into a new fixed rate cash ISA then our table can help you compare products by which ones will allow ISA transfers in.

If you have an existing fixed rate cash ISA you will have to wait till the term ends before you can transfer it without penalty.

Is your money protected in fixed rate cash ISA?

Most cash ISAs are protected under the Financial Services Compensation Scheme (FSCS) up to 75,000 per provider.

Those based overseas may use a foreign compensation scheme that could covers you for the equivalent of €100,000.

Fixed rate cash ISA FAQs

Q

Can I have more than one fixed rate cash ISA?

A

Yes, but only by transferring ISAs from a previous tax year into separate cash ISAs. You can only pay new money into one cash ISA each tax year.

Q

What is an ISA bond?

A

It is a cash ISA that ties your money up for a set term with a fixed interest rate. It is also known as fixed rate cash ISA.

Q

Can I withdraw from a fixed rate cash ISA?

A

No, unless you close the account down completely, which will result in a large interest penalty based on the full ISA term.

Q

Can the interest go down on a fixed rate cash ISA?

A

No, once you open a fixed rate cash ISA you will get the rate you signed up for throughout the full term of the account.

Q

Can I transfer other ISAs into a fixed rate cash ISA?

A

Yes, you can transfer ISAs from previous tax years when you open the account, but only if the ISA accepts transfers. Find out more here.