What are ISAs
ISAs, also known as individual savings accounts, can give you the opportunity to earn up to £20,000 tax-free interest on your savings.
The benefits of an ISA are not restricted to tax-free interest on your savings, you can also enjoy tax-free returns from any investments your make through your ISA.
Fixed rate ISAs
Cash and instant access ISAs are very popular, as you can access tax-free interest and make a withdrawal of any size at your convenience. However, a common complaint about cash ISAs is that they rarely offer you competitive interest, which could make the tax-free interest not as appealing.
A fixed rate ISA is an ISA that offers you the chance to get a higher rate of interest than cash or instant access ISAs. In order to access this higher rate of interest, fixed rate ISAs require you to leave your savings untouched in the ISA for the full duration of the fixed term. The longer you are prepared to leave your savings, the higher the interest you will receive.
When looking at your ISA options you may want to weigh up what is more important to you: unlimited access to your savings or higher interest rates?
If you are confident that you will not require access to your savings in the near future, then a fixed rate ISA could be an attractive option for you.
Fixed rate ISA calculator
When deciding on which fixed rate ISA to choose, you should always review the following:
- The minimum ISA deposit
- Additional bonus rates available
- How the interest is calculated
- Early closure penalties
If you want to open a fixed rate ISA account, then you should find out which ISA suits your financial needs. Our fixed rate ISA table above shows some of the best fixed rate ISA deals on the market.