Review of Lloyds Fixed Rate ISA
ISAs are a good idea whatever your savings goal. With certain types of cash ISAs, you have instant access to your money, which makes it a flexible way to plan your finances.
Lloyds Bank plc is a British retail and commercial bank with branches across England and Wales. The Cheltenham & Gloucester Building Society joined Lloyds Bank in August 1995. This was the first ever association between a bank and a building society. In 2015, Lloyds Bank marked its 250th anniversary - one of a number of important anniversaries that took place in Lloyds Banking Group that year.
What do they offer?
Lloyds offer a range of savings options including, the Help to Buy ISA, Monthly Savers and bonds. All with a competitive rate of interest. See our tables for latest Lloyds rates.
Two Year Fixed Rate Cash ISA
This account is easy to open with a £1 or more deposit, and you won't pay income tax on the interest you earn.
- You can save up to £20,000 and pay in as often as you like
- Flexible ISA rules allow you to withdraw money and replace it later in the same tax year, without losing any of your tax-free entitlement. However, withdrawal charges may apply
- You can transfer an existing ISA to Lloyds
- Interest is paid at a fixed rate for 2 years and calculated daily, so you know exactly how much you'll earn
- The interest you earn doesn’t count towards your ISA allowance
- You can have your interest paid monthly to boost your income, or annually to boost your savings. Your earned interest can be paid into a Lloyds Bank current account or an eligible savings account
- Pay in money as often as you like, up to your annual ISA allowance. You can pay in one lump sum, or any number of smaller payments.
- Internet banking, so you can easily manage your ISA and savings
You have a 14-day cancellation period. If you cancel during this period you'll still be able to subscribe to another cash ISA in the same tax year.
Why use a fixed rate ISA?
Typically, a fixed-rate Isa account will pay more interest. In exchange for a higher rate, banks will ask you to tie up your cash. Generally, the longer you give up access, the higher the return. As it is a guaranteed amount, you know what you will end up with at the end which makes it a lot safer than investing.
It’s also important to remember that ISA allowance limits apply to everyone on an individual basis, so if you’re married or in a relationship, you can both hold your own ISA, each with the full allowance.