A fixed-term rate ISAs is a savings account you open for a set period of time, usually ranging from 1 to 5 years, with a pre-agreed fixed rate of interest.

How does a fixed rate ISA work?

When a fixed rate isa, you're given a 14-day window to add as much money when you open the account. After the window closes, your money earns tax free interest until the end of the term, when the account matures.

Currently, the government has set a 20,000 limit on the amount you can invest in ISAs for the 2020/21 tax year.

Why save in a fixed rate ISA?

The best fixed rate ISA will 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.

How to choose the best fixed rate isa

There are three things to consider:

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

  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. 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.

Find out more about cash ISAs here

What are the benefits of fixed-rate cash ISAs?

If you're looking to put away money for use in the future, a fixed rate isa is a great way to make your money work for you without having to pay any tax on your earnings.

Given the current historically low interest rates, which look like they may last for a while, it's worth considering a fixed-rate ISA over an easy-access cash ISA, especially if can afford to tie your money up, as the interest rates tend to be higher

Keep in mind that the tax break is an addition to the Personal Savings Allowance (PSA), which allows basic-rate taxpayers to earn 1,000 in savings interest each year without having to pay any tax on it.

Can anyone open a fixed rate 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 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 ISA?

Most cash ISAs are protected under the Financial Services Compensation Scheme (FSCS) up to 85,000 per provider.

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

Find out more about compensation schemes here

Fixed rate ISA FAQs


Can I have more than one fixed rate ISA?


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.


What is an ISA bond?


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.


Can I withdraw from a fixed rate ISA?


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


Can the interest go down on a fixed rate ISA?


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.


Can I transfer other ISAs into a fixed rate ISA?


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.

About our fixed rate ISAs comparison


Who do we include in this comparison?


We include every fixed rate cash ISA. They are regulated by the Financial Conduct Authority (FCA).

Here is more information about how our website works.


How do we make money from our comparison?


We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.

You do not pay any extra and the deal you get is not affected.

Last updated: 16 October, 2020