Compare Fixed Rate Cash ISAs | ISA.co.uk
Choose the best fixed rate cash ISA to save your tax free allowance.
- Term: 1 Year
- Invest From: £1
Interest paid at maturity. ISA transfers also allowed in. Maximum deposit £250,000. FSCS Protected. Winner of Platinum Feefo Trusted Service Award in 2024. Must be UK resident and be aged 18 or older. No withdrawals permitted
- Term: 1 Year
- Invest From: £1,000
ISA transfers in allowed. FSCS Protected. Must be UK resident and aged 16 or older. Withdraw cash early if you need to (subject to loss of interest)
- Term: 2 Years
- Invest From: £1,000
ISA transfers in allowed. FSCS Protected. Must be UK resident and aged 16 or older. Withdraw cash early if you need to (subject to loss of interest)
- Term: 2 Years
- Invest From: £1
Interest paid annually. ISA transfers also allowed in. Maximum deposit £250,000. FSCS Protected. Winner of Platinum Feefo Trusted Service Award in 2024. Must be UK resident and be aged 18 or older. No withdrawals permitted
- Term: 3 Years
- Invest From: £1,000
ISA transfers in allowed. FSCS Protected. Must be UK resident and aged 16 or older. Withdraw cash early if you need to (subject to loss of interest)
- Term: 1 Year
- Invest From: £500
Interest paid annually. ISA transfers also allowed in (some providers charge a transfer fee). Open and manage online. FSCS Protected. Must be UK resident and be aged 18 or older. Withdrawals permitted subject to 90 days loss of interest. Online ISA is provided by OneFamily, savings in Post Office Cash ISAs are deposited with Bank of Ireland UK
- Term: 1 Year
- Invest From: £1,000
Terms and Conditions: You must be 18 or over and a UK Resident. Currently you can only subscribe to one Cash ISA with NatWest Bank per tax year. You must hold the account solely in your name. NatWest’s FRISA rates are 4.00% AER/Tax-free p.a. (fixed) for 1 year and 4.00% AER/Tax-free p.a. (fixed) for 2 years. Rate available until 5pm on 11th December 2024 for new customers and 16th December 2024 for existing customers. Offer may be withdrawn early due to limited availability. Interest is calculated daily and paid annually to your ISA on the first business day in April and on the Maturity Payment Date. You can withdraw money from your account up to 3rd January 2025. If you want to make a withdrawal after this time and before the Maturity Date, you must close your account by giving written notice in branch. ISA subscription limits apply. If you make a payment into your Fixed Rate ISA you will not be able to make any further payments for that tax year into any other cash ISA with NatWest or Royal Bank of Scotland. Early Closure Charge applies. The Early Closure Charge will be the lower of the amount of interest earned on your account or 90 days’ interest. The Early Closure Charge will be deducted from the balance of your Fixed Rate ISA. The interest payable on the money held in your account is tax-free. The tax treatment may be subject to change in the future and depends on your individual circumstances.
- Term: 2 Years
- Invest From: £1,000
Terms and Conditions: You must be 18 or over and a UK Resident. Currently you can only subscribe to one Cash ISA with NatWest Bank per tax year. You must hold the account solely in your name. NatWest’s FRISA rates are 4.00% AER/Tax-free p.a. (fixed) for 1 year and 4.00% AER/Tax-free p.a. (fixed) for 2 years. Rate available until 5pm on 11th December 2024 for new customers and 16th December 2024 for existing customers. Offer may be withdrawn early due to limited availability. Interest is calculated daily and paid annually to your ISA on the first business day in April and on the Maturity Payment Date. You can withdraw money from your account up to 3rd January 2025. If you want to make a withdrawal after this time and before the Maturity Date, you must close your account by giving written notice in branch. ISA subscription limits apply. If you make a payment into your Fixed Rate ISA you will not be able to make any further payments for that tax year into any other cash ISA with NatWest or Royal Bank of Scotland. Early Closure Charge applies. The Early Closure Charge will be the lower of the amount of interest earned on your account or 90 days’ interest. The Early Closure Charge will be deducted from the balance of your Fixed Rate ISA. The interest payable on the money held in your account is tax-free. The tax treatment may be subject to change in the future and depends on your individual circumstances.
- Term: 1 Year, with option to make three free withdrawals
- Invest From: £1
Make up to three withdrawals during the 12-month term of this account. Tax free ISA account. Open with £1 or transfer in existing ISA funds. Invest up to £20,000 per tax year. Manage your account online. Interest paid at maturity. FSCS Protected. Must be UK resident and aged 16 or older. Make more than three withdrawals and the rate drops to 2.10% AER/gross p.a. (variable). Not available in branch
- Term: 1 Year
- Invest From: £1,000
Terms and Conditions: You must be 18 or over and a UK Resident. Currently you can only subscribe to one Cash ISA with Royal Bank of Scotland per tax year. You must hold the account solely in your name. Royal Bank of Scotland’s FRISA rates are 3.80% AER/Tax-free p.a. (fixed) for 1 year and 3.40% AER/Tax-free p.a. (fixed) for 2 years. Rate available until 5pm on 11th December 2024 for new customers and 16th December 2024 for existing customers. Offer may be withdrawn early due to limited availability. Interest is calculated daily and paid annually to your ISA on the first business day in April and on the Maturity Payment Date. You can withdraw money from your account up to 3rd January 2025. If you want to make a withdrawal after this time and before the Maturity Date, you must close your account by giving written notice in branch. ISA subscription limits apply. If you make a payment into your Fixed Rate ISA, you will not be able to make any further payments for that tax year into any other cash ISA with Royal Bank of Scotland or NatWest. Early Closure Charge applies. The Early Closure Charge will be the lower of the amount of interest earned on your account of 90 day’s interest. The Early Closure Charge will be deducted from the balance of your Fixed Rate ISA. The interest payable on the money held in your account is tax-free. The tax treatment may be subject to change in the future and depends on your individual circumstances.
- Term: 5 Years
- Invest From: £1
Interest paid annually. ISA transfers also allowed in. Maximum deposit £250,000. FSCS Protected. Winner of Platinum Feefo Trusted Service Award in 2024. Must be UK resident and be aged 18 or older. No withdrawals permitted
- Term: 2 Years
- Invest From: £500
Interest paid annually. ISA transfers also allowed in (some providers charge a transfer fee). Open and manage online. FSCS Protected. Must be UK resident and be aged 18 or older. Withdrawals permitted subject to 180 days loss of interest. Online ISA is provided by OneFamily, savings in Post Office Cash ISAs are deposited with Bank of Ireland UK
- Term: 2 Years
- Invest From: £1,000
Terms and Conditions: You must be 18 or over and a UK Resident. Currently you can only subscribe to one Cash ISA with Royal Bank of Scotland per tax year. You must hold the account solely in your name. Royal Bank of Scotland’s FRISA rates are 3.80% AER/Tax-free p.a. (fixed) for 1 year and 3.40% AER/Tax-free p.a. (fixed) for 2 years. Rate available until 5pm on 11th December 2024 for new customers and 16th December 2024 for existing customers. Offer may be withdrawn early due to limited availability. Interest is calculated daily and paid annually to your ISA on the first business day in April and on the Maturity Payment Date. You can withdraw money from your account up to 3rd January 2025. If you want to make a withdrawal after this time and before the Maturity Date, you must close your account by giving written notice in branch. ISA subscription limits apply. If you make a payment into your Fixed Rate ISA, you will not be able to make any further payments for that tax year into any other cash ISA with Royal Bank of Scotland or NatWest. Early Closure Charge applies. The Early Closure Charge will be the lower of the amount of interest earned on your account of 90 day’s interest. The Early Closure Charge will be deducted from the balance of your Fixed Rate ISA. The interest payable on the money held in your account is tax-free. The tax treatment may be subject to change in the future and depends on your individual circumstances.
Compare Fixed Rate Cash ISAs in 2024: Lock in a Guaranteed Return
Fixed-rate cash ISAs offer a great opportunity for savers looking to secure a reliable return while benefiting from tax-free interest.
As interest rates rise in 2024, it’s a perfect time to explore these accounts, especially if you’re happy to lock your money away for a set period.
We’ll explain everything you need to know about fixed-rate cash ISAs, help you compare fixed cash ISA rates, and help you find the right account for your savings goals.
What is a Fixed-Rate Cash ISA?
A fixed-rate cash ISA is a savings account that guarantees a set interest rate for a specified term, usually between one and five years.
The main advantage of these accounts is the security they provide—your interest rate will remain the same over the fixed term, regardless of market fluctuations.
Additionally, the interest you earn remains tax-free under your annual ISA allowance, currently set at £20,000 per year.
Fixed-rate ISAs are ideal if you want to safeguard your savings against interest rate drops and are willing to lock your funds away for the chosen term.
However, they come with restrictions, such as penalties for early withdrawal, so they’re best suited for savers who won’t need immediate access to their money.
How Fixed Rate Cash ISAs Work
When you open a fixed-rate ISA, you commit to leaving your money untouched for a pre-agreed period. During this time, the interest rate is fixed, and the savings account operates under the tax-free wrapper provided by the ISA structure.
Unlike an instant access cash ISA, fixed-rate savings accounts require a higher degree of commitment as early withdrawals usually result in penalties, often calculated as a loss of interest.
Once the term ends, you can either withdraw your funds, transfer them to another ISA, or reinvest them into a new fixed-rate ISA.
It’s essential to review the market at the end of your term to ensure you’re still getting the best available rate.
Benefits of Fixed Rate Cash ISAs
- Guaranteed returns: You know exactly how much interest you’ll earn, with no risk of your rate being reduced during the fixed term.
- Tax-free interest: All interest earned is free from tax, as long as you remain within your annual ISA allowance.
- Higher rates: Fixed-rate ISAs often offer better interest rates than their easy-access counterparts, especially for longer terms.
- Security: If you’re concerned about future interest rate drops, locking in a rate now ensures you benefit from today’s higher returns, even if the market changes.
Potential Drawbacks
- Lack of flexibility: Withdrawing money before the end of the fixed term can incur penalties, typically calculated as a loss of interest for a certain number of days. For example, a 180-day loss of interest might apply if you withdraw from a two-year ISA before it matures.
- No additional deposits: Most fixed-rate ISAs only allow deposits during a short window after opening. After this, you can’t add to your balance.
- Opportunity cost: If interest rates rise significantly during your fixed term, you may miss out on a better deal elsewhere, as your rate is locked in.
How to Choose the Right Fixed Rate ISA for You
When selecting a fixed-rate ISA, there are several factors you should consider to ensure you’re making the best decision for your circumstances:
Interest rate
Naturally, you’ll want to choose the account offering the highest rate, but don’t forget to factor in the term length and how it aligns with your future needs. Often, challenger banks offer higher rates than traditional high street banks.
Term length
Shorter terms (e.g., one year) offer more flexibility, but you’ll typically get a better rate by locking your money away for longer periods like three or five years. Consider whether you can afford to leave your money untouched for that long.
Withdrawal rules
Check the terms for early withdrawal. Some ISAs have strict penalties or won’t allow withdrawals at all, while others may offer a limited number of penalty-free withdrawals.
Transfer options
If you already have funds in another ISA, verifying whether the new provider accepts transfers is essential. Additionally, make sure you use the official ISA transfer process to retain the tax-free status of your savings.
ISA Transfers and Managing Your Fixed-Rate ISA
If you find a better rate elsewhere or your current ISA is about to mature, transferring your ISA can help you make the most of the tax-free benefits.
To ensure your funds keep their tax-free status, always transfer ISAs through the official process provided by the new ISA provider.
Withdrawing the money and reinvesting it manually could mean losing the tax advantages.
At the end of your fixed term, you have several options:
- Reinvest: Choose a new fixed-rate ISA if you’re happy to keep your savings locked away for another term.
- Transfer: Move your funds into a different type of ISA, such as an easy-access cash ISA or a stocks and shares ISA.
- Withdraw: Access your funds and use them for other financial goals.
Secure Your Savings with a Fixed Rate ISA
Fixed-rate cash ISAs provide a stable and secure way to grow your savings tax-free, especially if you’ve used up your personal savings allowance.
With competitive rates available in 2024, now is an excellent time to explore your options and choose an account that aligns with your financial goals.
Compare cash ISAs today and secure a guaranteed return on your hard-earned savings without having to pay tax.
Frequently Asked Questions
Can I open multiple fixed-rate ISAs?
Yes, you can open multiple ISAs within a tax year, but the total amount you can contribute across all your ISAs cannot exceed the annual £20,000 limit.
What happens if I need to withdraw early?
Most fixed-rate ISAs have penalties for early withdrawals, typically in the form of lost interest. Some accounts do not allow withdrawals at all until the term ends.
How is interest paid?
Interest on fixed-rate ISAs is usually paid either annually or at the end of the term. Some providers offer monthly interest payments, depending on the account terms.