2 Year Fixed Rate Cash ISA

Compare 2 Year Fixed Rate Cash ISAs

A 2 year fixed rate cash ISA provides a guaranteed rate of return, in exchange for locking your cash away for 24 months. Many ISA providers offer two year fixed rate deals, so it's worth doing your research and shopping around in order to get the best deal possible.

Putting money into a 2 year fixed-rate cash ISA is one way to protect your savings return in an era of falling rates, but be aware the opposite is also true: if you lock your money up in a fixed-rate bond just before rates rise, your cash won't benefit from the increase.

Bear in mind that the interest rates on many 2 year fixed cash ISAs drop substantially after the fixed term ends, so you will need be ready to move your money to an account with a better rate once this happens.

How does a 2 year fixed rate ISA work?

Fixed rate ISAs offer a fixed rate of interest on your tax-efficient savings, usually for periods of 1-5 years. Traditionally longer fixed terms meant higher interest rates, although this isn't always the case in today's financial climate, so you may wish to consider alternatives to fixed rate ISAs. You can save up to the maximum ISA allowance for the tax year.

Some fixed rate ISAs may allow you to make withdrawals, however this will be subject a penalty for a set amount of days interest meaning that you could get back less than you originally put into the account. As such if you feel you would like to maintain the ability to make withdrawals without receiving some kind of a penalty you may want to consider instant access or notice account instead.

A 2 year fixed rate cash ISA might be right for you if...

1. You are happy to put your money aside for a minimum of 24 months - this usually allows you to accrue a higher rate of interest than you might get with an instant access cash ISA.
2. You want to take advantage of a fixed rate in the medium term

Use the comparison tables above to compare our wide range of the best 2 year fixed rate ISAs from leading providers which might help you decide which product is best for you. Or, for potentially higher returns, you could consider our selection of cash ISA alternatives.

Individual Savings Account Rules

Every eligible person is allowed to deposit up to the maximum annual limit (link) into a cash ISA or a stocks and share ISA, or opening one of each type of account if they break up their limit between the two.

In order to be eligible for a ISA you must:

1. Be at least 16 years old top open an adult cash SA
2. Be at least 18 years old or over for a stocks and shares ISA.
3. Be a resident of the United Kingdom.
4. If you don’t live in the UK then you need to be a Crown Servant or their spouse/civil partner.