skip to main content
Homepage /

What is a Fixed Rate ISA?

Find out more about the Fixed Rate ISA
Fixed Rate Cash ISAs

1 Year Fixed Rate Cash ISA

from Aldermore

Interest Rate (AER) 1.45%
  • Term: 1 Year

Open a 1 Year Fixed Rate Cash ISA with Aldermore Bank to get a great return. 

2 Year Fixed Rate Cash ISA

from Aldermore

Interest Rate (AER) 1.60%
  • Term: 2 Year

'Winner' – ISA Provider of the Year for the 5th year running Consumer Moneyfacts Awards 2011-15

3 Year Fixed Rate Cash ISA

from Aldermore

Interest Rate (AER) 1.70%
  • Term: 3 Years

'Winner' – ISA Provider of the Year for the 5th year running Consumer Moneyfacts Awards 2011-15

  • £1,000 minimum opening balance

Calculate your interest with this plan

Your savings:
£
You could gain:
£0.00 (per tax year)

What is a fixed rate ISA?

An ISA, or Individual Savings Account, is a tax efficient way to save letting you pay little or no tax on the interest of your savings and investments, making them a popular choice for saving large amounts of money.

Fixed rate ISAs mean that savers cannot access their money during the fixed term, if they do, they will face the penalty of lost interest.

As your tax-free amount is much higher in an ISA, there are still opportunities for savers to make the most of their money.

ISAs allow people to save thousands of pounds tax-free every year. The maximum cash ISA amount for the 2017/18 tax year is £20,000.

They have become less popular since the new PSA (Personal Savings Allowance) has allowed lower rate tax payers to save up to £1000 tax-free and higher rate tax payers up to £500. Many current accounts are now offering competitive rates of interest, which means people are moving away from ISAs.

However, as ISAs allow you to save a higher amount tax-free than any other kind of account, there is still a good reason to use them.

Why use an ISA?

Paying into an ISA is called ‘subscribing’. You can subscribe to one of each type of ISA each tax year, providing you do not subscribe more than your annual ISA allowance. For the 2017/2018 tax year that runs from 6th April 2017 to 5th April 2018 your annual ISA allowance is £20,000.

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 are married or in a relationship, you can both hold your own ISA, each with the full allowance.

High Interest ISA Accounts

Some of the highest interest paying fixed rate ISAs at the moment, include:

1)Tesco ISA

In the first 30 days you can pay in up to £20,000. 

Features:

•Your interest rate is guaranteed for one year, you can't withdraw any money during this fixed term unless you close the account and pay a fee

•You can manage your money with online and telephone banking

•You can transfer your existing ISA as long as it’s within 30 days

This ISA is a great option if you’re able to tie up your money for a year due to its high interest rate and ability to manage your account online.

2) Bank of Cyprus ISA

The Bank of Cyprus UK Cash ISA offers a unique combination which functions as a fixed and variable way to save. It combines the security of a fixed rate Cash ISA with the flexibility to make further deposits at the variable rate (up to the Cash ISA annual subscription limit).

Features:

•Competitive tax-free interest rates, including loyalty rates for existing customers

•Your interest rate options are flexible. You can start with a variable rate and switch your funds to a fixed rate at any time. You can only fix the rate once in each tax year - subject to a minimum of £500

•Top-up your Cash ISA anytime during the tax year

•Fee-free withdrawals from the fixed rate are permitted at the end of the fixed term

3) The Post Office Fixed Rate Cash ISA

Features:

•A competitive fixed interest rate

•You must have a minimum of £500 to invest

•No access to your savings until the end of the agreed fixed term

•One year fixed term

Interest is calculated daily and paid annually on the anniversary of the account opening.

Check our comparison tables for latest rates and offers.

High Income ISAs

High income ISA ideas:

ISAs Products

Cash ISAs

Fixed Rate & Instant Access ISAs:

Cash ISAs: 

Stocks & Shares ISAs

Types of Stocks and Shares ISA include: 

Stocks and Shares ISAs

Latest News

How much can I pay into an ISA?

21st March 2019

Each tax year, there's a limit set by the government to the amount you can save and invest in ISAs: your “annual ISA allowance”. The allowances are intended to reward savers and encourage us to invest more to support our future retirements, without creating a tax haven that can be taken advantage of by very wealthy individuals who just want to avoid paying tax.

Newsletter Signup

Sign up to our Newsletter to get exclusive news and offers direct to your inbox.

About us

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 us

4.91 Average

22 Reviews

Jen

I 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.

Paul

Very informative, find myself a good ISA account with best return in terms of interest.

Sue

Easy to use website and up to date. Saved the link on my tablet.

Rob Holden

The website was very useful and informative.

Andrew Johnson

ISA can be confusing at first and this site includes a useful and helpful introduction into the world of ISAs

Crowd2Fund

Excellent website - clear and helpful information about different products - and a trustworthy partner.

Sue

Easy to use website and up to date. Saved the link on my tablet.

Steve

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.

Hannah Gordon

This was a really user-friendly site, and was very helpful when it came to comparing accounts and choosing my 2016 ISA.

Sue

Easy to use website and up to date. Saved the link on my tablet.

Anonymous

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.

Cristina Iacob

Very knowledgeble company with an extensive range of services, a great website with loads of useful information.

Anonymous

Nice graphics and easy to navigate

Dr Alan Rogan BSc PhD FCIOB FCABE Eur Ing

Good advice and professional approach

Razvan

Very helpful for getting my annual ISA

Jonny Doulton

Clear, concise and very professional outfit with an excellent choice of market leading deals.

Paul Tissington

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.

Sunil Karadia

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.

James Weatheritt

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.

Lisa Holden

I found ISA.co.uk very insightful and easy to navigate through. The content was useful and helped me make my ISA decision.

Neta Pourhosseini

I thought the information provided was easy to understand and very informative, I would recommend to friends for deffinite.