Compare 1 Year Fixed Rate Cash ISAs
A 1 year fixed rate cash ISA provides a guaranteed rate of return, in exchange for locking your cash away for 12 months. Many ISA providers offer one 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 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. A one year fixed rate cash ISA could offer a compromise between easy access and improved rates, as you won't have to wait too long to move your money should you find a better rate elsewhere.
Bear in mind that the interest rates on many 1 year fixed cash ISAs drop substantially after the fixed term ends, so you'll need to be ready to move your money to an account with a better rate once this happens.
How does a 1 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.
A 1 year fixed rate cash ISA might be right for you if...
- You are happy to put your money aside for a set period of time - this usually allows you to accrue a higher rate of interest than you might get with an instant access cash ISA.
- You don't want to tie up your cash for too long, but still want to take advantage of a fixed rate
Use the comparison tables above to compare our wide range of the best fixed term ISAs from leading providers. Or for potentially higher returns, you could consider our selection of cash ISA alternatives.
In addition to 1 year fixed rate ISA’s there are also options for longer periods such as 2, 3 and 5 year products.
If you feel that you may need to access some of your savings within the term of the ISA then it may be better to go for an option that permits withdrawals without a penalty instead.
One year fixed rate ISA may have a minimum amount you can deposit into the account, they may also only permit one deposit, or unlimited deposits up to a certain date. This means you may need to shop around products to compare what different providers have available to find the most suitable Individual Savings Account for your specific needs.