What are ISAs
An individual savings account, or ISA as it is commonly known as, gives you the opportunity to earn up to £20,000 tax-free interest.
If you subscribe to an ISA, then you will not only benefit from tax-free interest on your savings, but you can also invest from your ISA and avoid paying tax on your investment returns.
Fixed rate ISAs
There are many ISA products on offer that give you the chance to earn tax-free interest and allow you to make withdrawals at your convenience.
However, the issue with instant access ISAs or cash ISAs is that their interest rates are usually not as competitive as other ISA options.
If you are willing to tie up your capital for a period of time, then you may want to look into fixed rate ISAs. You can access higher interest through a fixed rate ISA, providing you do not make a withdrawal throughout the course of the fixed term.
Skipton fixed rate ISAs
Skipton is a building society that is purely focused on its members and offers business and personal banking services. They have a variety of accounts that offer competitive interest including fixed rate ISAs.
Skipton specialises in savings products, and as a result they offer a wide range of fixed rate ISAs, which range from 1 to 5 years. It should be noted that no withdrawals can be made with a Skipton fixed rate ISA. You will incur an early closure fee if you want to close the fixed term ISA before its term of finance finishes. Early closure fees can be substantial and are often a number of days’ worth of interest. Therefore, you should only open a fixed term ISA if you are confident that you do not need your savings in the near future.
If you want to explore your fixed rate ISA options, then review our table above. Our ISA table above provides some of the best ISAs available on the market, including ISAs from other lenders.