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Cash ISAs /

Fixed Rate Cash ISAs

Latest Fixed-Rate Cash ISA deals
The 2018/19 ISA allowance is £20,000. Use your ISA allowance wisely by comparing our selection of market-leading fixed-rate cash ISAs to maximise your tax-free returns.
Deposit Cash ISAs

FTSE 100 Kick Out Deposit Plan

from Investec

ISA Option
Maximum Potential Return 5.00% per annum
  • Deposit Taker: Investec Bank plc
  • Term: Up to 6 years
  • Opportunity to mature early at year 3, 4 or 5
  • Capital Protected Product*
  • Eligible for the Financial Services Compensation Scheme
  • ISA transfers accepted
  • Short/medium term alternative to fixed rates
  • Minimum single Investment - £3,000
  • This plan is not the same as a bank or building society deposit account and you may not receive your initial deposit in full if your capital is withdrawn early
  • Limited offer - deadlines apply. May close early if oversubscribed

Calculate your interest with this plan

Your savings:
£
You could gain:
£0.00 (per tax year)

Important Information: * The return of your initial deposit depends on the ability of the deposit taker (Investec Bank plc) to repay your money. Structured deposits offer you the potential to earn higher returns than you would with a regular savings account. Your returns are based on the performance of an index or commodity. If the investment does not perform well you may receive no income or capital growth, but you can be confident that your capital will be repaid. You have no access to your deposit during the term of the account, typically 3 to 6 years but your original capital will be repaid in full at the end of the term. In the event that the deposit taker is unable to repay your initial investment and any returns stated you may be entitled to compensation from the Financial Services Compensation Scheme (FSCS) depending on your individual circumstances.

Fixed Rate Cash ISAs

1 Year Fixed Rate Cash ISA

from Ford Money

Interest Rate (AER) 1.45%
  • Term: 1 Year
  • Minimum deposit £500
  • Interest can be paid monthly or annually
  • Transfers in allowed
  • FSCS Protected
  • Must be 16 or over to apply
  • Early withdrawals subject to term breakage charge

Calculate your interest with this plan

Your savings:
£
You could gain:
£0.00 (per tax year)

1 Year Fixed Rate Cash ISA

from Aldermore

Interest Rate (AER) 1.40%
  • Term: 1 Year

Open a 1 Year Fixed Rate Cash ISA with Aldermore Bank to get a great return. 

2 Year Fixed Rate Cash ISA

from Ford Money

Interest Rate (AER) 1.65%
  • Term: 2 Years
  • Minimum deposit £500
  • Interest can be paid monthly or annually.
  • Transfers in allowed
  • FSCS Protected
  • Must be 16 or over to apply
  • Early withdrawals subject to term breakage charge

Calculate your interest with this plan

Your savings:
£
You could gain:
£0.00 (per tax year)

2 Year Fixed Rate Cash ISA

from Aldermore

Interest Rate (AER) 1.65%
  • Term: 2 Year

'Winner' – ISA Provider of the Year for the 5th year running Consumer Moneyfacts Awards 2011-15

3 Year Fixed Rate Cash ISA

from Aldermore

Interest Rate (AER) 1.80%
  • Term: 3 Years

'Winner' – ISA Provider of the Year for the 5th year running Consumer Moneyfacts Awards 2011-15

  • 1.80% gross/AER fixed for 3 years.
  • £1,000 minimum opening balance

Calculate your interest with this plan

Your savings:
£
You could gain:
£0.00 (per tax year)

Savings Focus: a potential 5.0% from your savings...

Although inflation over the last couple of months has fallen slightly to 2.50%, this is still much higher than you can get from many traditional savings products, such as fixed rate bonds. And if you take a look at the range of Cash ISA rates on offer, the options are even worse as these savings rates are generally much lower than their non-ISA equivalents.

Against this challenging environment for savers, the  Deposit Kick Out Plan from Investec Bank has proved to be popular choice with a wide range of our new and existing savers.

By linking your return to the FTSE 100 Index, this plan offers a potential 5.0% per year (not compounded). Although it has a maximum term of six years, it will ‘kick out’ early provided the value of the FTSE 100 Index at the end of each year from year 3 onwards, is higher than its value at the start of the plan. That’s a potential 15% after three years, 20% after four years, etc.

The plan is deposit based and so offers the same FSCS protection as a normal fixed rate bond, but since the rate is not guaranteed, it should be considered as an alternative to traditional savings products. With this in mind, if you think savings rates will remain at their current historical lows, alternatives such as these might well be worth a  closer look…


Fixed-Rate Cash ISAs

Instant access cash ISAs offer savers the benefit of quick and easy access to their money whenever they need it; however, they're not the only cash ISA option available. 

Fixed-rate cash ISAs allow you to lock your tax-efficient cash ISA allowance away for a predetermined period at a fixed rate of interest. 

Fixed-rate cash ISAs vary in timescale from six months to five years, and generally, the longer you are willing to lock your cash away, the higher the rate will be.

However, it's important to remember that fixed-rate accounts don't necessarily beat the highest rates on offer from more accessible cash ISAs. It's essential to research providers thoroughly before you commit, rather than assuming that a fixed-term ISA will automatically guarantee a superior rate.

Unlike instant access ISAs, fixed-rate ISAs mean that you run the risk of being unable to switch to a provider with preferable interest, at least until you've sat out the fixed term. So, you could find that the attractive fixed rate you started out with begins to look increasingly uncompetitive in comparison with subsequent instant access cash ISA rates.

The fixed term offered by this type of ISA does have the potential to some real advantages, however. As well as the possibility of a good rate of return over the long term, fixed-rate cash ISAs can be a useful way to save for a specific future event. Knowing that you'll be penalised for early withdrawal from a fixed-rate ISA might make you think twice before using the cash for something else.

As with all types of ISA, there are various factors to consider, and the product that's best for you is likely to depend on your individual circumstances.

Things to look out for when choosing a fixed-rate cash ISA

There are a wide variety of fixed-rate ISA account deals to choose from, so we have highlighted some of the features to look out for:

  • Minimum ISA deposits - some fixed-rate cash ISA accounts require a minimum level of funding to get started. This can vary widely - from as little as £50 to upwards of £1,000 - so it's important to consider how much money you can realistically afford to tie up for the minimum term required. Once you've placed your minimum deposit, you can then add funds up to the ISA limit, which is £20,000 for 2018/19.
  • Additional bonus rates - many fixed-rate cash ISA accounts offer a bonus for new customers, paid at the end of a set period. There are often conditions attached to this offer, and savers should bear in mind that once this special bonus is paid, the ongoing interest rate may not be competitive. Be prepared to switch to a different ISA provider once this period ends.
  • Interest calculation method - some ISA providers pay interest monthly, while others do so quarterly or annually. Check this with your provider before opening a fixed-rate cash ISA.
  • Early closure penalties - if you close your fixed-rate cash ISA before the term is over, or withdraw money from it, you will face some form of penalty charge. This may be a loss of interest - for example, on a five-year fixed term cash ISA you could lose up to a year's tax-free interest if you close your account early.

Not sure where to start?

ISA.co.uk provides information on a range of fixed-rate cash ISAs. If this option isn't right for you at the moment, take a look at the range of alternatives to fixed-rate cash ISAS, such structured deposit plans, which are suitable for people who are looking to tie up cash for a longer period of three to six years.

As with all types of ISA, there are various factors to consider, and the product that's best for you is likely to depend on your individual circumstances.

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An ISA is an individual savings account that offers the chance for individuals to earn up to £20,000 tax-free interest.Not only can those who subscribe to an ISA benefit from tax-free interest from savings, but also enjoy the freedom to invest from their ISA and avoid paying tax on their returns.

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