With a 5 year fixed rate ISA savers know exactly how much they stand to earn from interest accumulation, in return for locking their cash into the account for a 60 month period.
Like most fixed rate ISAs with a 5 year option you are required to lock your money into the account for that time frame. Over the 5 year period of the account the interest rate paid upon it will be fixed, so it is possible to tell exactly how much you will earn.
Locking your savings into a fixed rate is also a way savers can try to protect themselves from interest rates falling in the future, however if interest rates rise there is the risk that their interest rate will become uncompetitive.
How interest is calculated upon fixed rate accounts can vary by provider, some will do pay interest monthly while others may do so quarterly or annually.
Some fixed rate ISA permit early full or partial withdrawals, however these are normally subject to a penalty based upon a set amount of days worth of interest accumulation. This means that savers could actually get back less than they originally deposited in the account.
Fixed rate accounts commonly have a minimum amount that must be deposited in order to open, or transfer into, the account.
Fixed Rate ISAs are also available for other time spans such as; 1, 2 and 3 year products. As a general rule the longer the account requires money to be locked into the ISA for the better the rate of interest offered.
Other types of Cash ISA include Instant access plans. These types of ISA usually allow the account holder to make unlimited free withdrawals from the account, without having to pay an interest penalty. They usually however offer a variable interest rate rather than a fixed one.
ISA rules only permit each eligible person to open up to one Cash ISA in each tax year (although it may be possible to transfer an ISA). This means it’s a good idea to shop around to try and find a product that fits with how you want to save. You can use the tables on this website to view a selection of different types of ISA from various providers and follow the links to find out more or apply.
Types of Stocks and Shares ISA include:
Stocks and Shares ISAs
21st January 2021
Considering your 2021 ISA Options? We look at investment trusts worth a closer look and our 5 top picks for consideration for your stocks and shares ISA.
Sign up to our Newsletter to get exclusive news and offers direct to your inbox.
ISA.co.uk is a trading style of Fair Investment Company.
We've been comparing and recommending ISAs for many years so you can trust you're in good hands.
About usI found the way the different options are presented very clear - much more useful than some other comparison sites. I sent it to my daughter as well.
Very informative, find myself a good ISA account with best return in terms of interest.
Easy to use website and up to date. Saved the link on my tablet.
The website was very useful and informative.
ISA can be confusing at first and this site includes a useful and helpful introduction into the world of ISAs
Excellent website - clear and helpful information about different products - and a trustworthy partner.
Easy to use website and up to date. Saved the link on my tablet.
Really simple to use and all the information was clear with lots of products available. The interest calculator was really handy too. Have bookmarked and will definitely use again.
This was a really user-friendly site, and was very helpful when it came to comparing accounts and choosing my 2016 ISA.
Easy to use website and up to date. Saved the link on my tablet.
If you wish to invest in an ISA this site has it all. A super comprehensive range of simply explained products from all the major companies.
Very knowledgeble company with an extensive range of services, a great website with loads of useful information.
Nice graphics and easy to navigate
Good advice and professional approach
Very helpful for getting my annual ISA
Clear, concise and very professional outfit with an excellent choice of market leading deals.
ISA.co.uk not only helped narrow down my choices for a Junior ISA but also provided additional practical information that helped demystify the whole process.
Just the site I needed, I have been looking for a suitable ISA for a while, but as there are so many to choose from, find it difficult to find the right one for me.
I found the information on ISA.co.uk very helpful and easy to understand. The site is easy to navigate and find what you're looking for.
I found ISA.co.uk very insightful and easy to navigate through. The content was useful and helped me make my ISA decision.
I thought the information provided was easy to understand and very informative, I would recommend to friends for deffinite.