Review of Britannia Fixed Rate ISA
Tax-free saving and guaranteed interest rate for a fixed term, The Co-op and Britannia offer a number of savings options for their customers with one of the highest rate of interest on the market. Check our tables for comparison of interest rates.
Britannia, a former mutual building society, merged with The Co-operative Banking Group in 2009. It is now a trading name of the Co-operative Bank in the United Kingdom. Britannia was legally dissolved as a separate organisation on 1 August 2009 and merged into Co-operative Financial Services, to become a trading name of The Co-operative Bank.
Britannia Fixed Rate Cash ISA
The merger with co-operative mean they can offer more accounts to their customers. While the co-operative bank do not offer any fixed rate ISAs themselves, this two year fixed rate Britannia account may suits savers looking for a long term fixed option.
- Competitive tax-free rates
- Transferred into a variable rate Cash ISA (or equivalent) once your account reaches its term
- Open with a minimum of £5000 or £1 if transferring previous years' cash ISAs with Britannia or other providers
- Pays interest into your account after close of business on 30th November each year
- Customers are issued with a passbook
- Withdrawals cannot be made and early closure of the account results in a loss of 180 days interest.
Customers of the Co-operative Bank benefit from their ethical trading policies, Co-op are one of the few banks that let customers have a say in financial issues that directly affect them and financial issues globally.
Offering a two year fixed rate, this account may not suit everyone. They do offer other ISAs but at a variable rate of interest.
Why use a Fixed Rate ISA?
Typically, a fixed-rate ISA account will pay more interest. In exchange for a higher rate, banks will ask you to tie up your cash. Generally, the longer you give up access, the higher the return. As it is a guaranteed amount, you know what you will end up with at the end which makes it a lot safer than investing.
ISAs are a good idea whatever your savings goal. With certain types of cash ISAs, you have instant access to your money, which makes it a flexible way to plan your finances.
It’s also important to remember that ISA allowance limits apply to everyone on an individual basis, so if you’re married or in a relationship, you can both hold your own ISA, each with the full allowance meaning you can save over £30,000 tax-free.