Best Fixed Rate ISAs

Compare our best fixed rate ISAs

 

What are fixed rate cash ISAs?

 

Fixed rate cash ISAs allow you to lock your tax-efficient cash ISA allowance away for a predetermined period at a fixed rate of interest. Fixed rate cash ISAs vary in timescale from six months to five years, and generally, the longer you are willing to lock your cash away, the higher the rate will be. However, it's important to remember that fixed-rate accounts don't necessarily beat the highest rates on offer from more accessible cash ISAs. It's essential to research providers thoroughly before you commit, rather than assuming that a fixed-term ISA will automatically guarantee a superior rate.

 

Unlike instant access ISAs, fixed-rate ISAs mean that you run the risk of being unable to switch to a provider with preferable interest, at least until you've sat out the fixed term. So, you could find that an attractive initial rate becomes uncompetitive in comparison with subsequent instant access cash ISA rates. However, the fixed terms offered by this type of ISA can sometimes offer the possibility of a good rate of return over the long term. As with all types of ISA, there are various factors to consider - if you're unsure, you may want to seek independent financial advice.

 

 

What benefits can fixed rate ISAs offer? 

 

  • Competitive and guaranteed returns on your cash savings
  • Tax-free savings
  • A fixed rate for the term of the bond

 

Visit the Cash ISA section for more cash ISA options.

If you are looking for investment or stocks and shares ISAs visit the investment ISA section.


 

Points to remember when choosing a fixed-rate cash ISA

 

There are a wide variety of fixed-rate ISA account deals to choose from, so we have highlighted some of the features to look out for:

 

  • Some fixed-rate cash ISA accounts require a minimum level of funding to get started, so check what kind of deposit will be required before you sign up.
  • Many fixed-rate cash ISA accounts offer a bonus for new customers - but once this is paid, be prepared to switch to a different ISA provider to get a better rate.
  • Some ISA providers pay interest monthly, while others do so quarterly or annually. Check this with your provider before opening a fixed-rate cash ISA.
  • Fixed rate cash ISAs may have early closure penalties - if you close your fixed-rate cash ISA before the term is over, or withdraw money from it, you will face some form of penalty charge.   

 

Choose from some of the best fixed rate ISAs available using the comparison table below, which shows top fixed rates from leading providers:

Fixed Rate Cash ISAs
ProviderAccountInterest Rate (AER)TermApply
2.20%3 YearApply Now >
  • Manage your account online, by phone or post
  • Withdraw cash early if you need to (subject to loss of interest)
  • Transfer from other cash ISA providers
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Must be UK resident and aged 18 or older
  • Minimum opening balance of £1,000
1.85%2 YearApply Now >
  • Manage your account online, by phone or post
  • Withdraw cash early if you need to (subject to loss of interest)
  • Transfer from other cash ISA providers
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Must be UK resident and aged 18 or older
  • Minimum opening balance of £1,000
1.50%1 YearApply Now >
  • Manage your account online, by phone or post
  • Withdraw cash early if you need to (subject to loss of interest)
  • Transfer from other cash ISA providers
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Must be UK resident and aged 18 or older
  • Minimum opening balance of £1,000
Alternatives to Fixed Rate Bond Cash ISAs
ProviderPlan NameDeposit TakerISA OptionTermMaximum Potential ReturnMore Info
Kick Out DepositInvestec Bank plcyesUp to
6 years
4.75%
per annum
More Info >
  • 4.75% for each year if the FTSE 100 finishes higher than its starting value
  • Opportunity to mature early at year 3, 4 or 5
  • Capital protected
  • Short/medium term alternative to fixed rates
  • Also available for Cash NISAs & NISA transfers
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Limited offer - deadlines apply. May close early if oversubscribed
  • Plan designed to be held for full term
  • Arrangement fee applies
  • Returns not guaranteed. You may only receive a return of your original capital 
5 Year Deposit Plus PlanInvestec Bank plcyes5 years20% fixed or 100% of FTSE 100 growth (no limit)More Info >
  • Target return of 20% gross or 100% of any growth in the Index if higher
  • Capital protected
  • Low minimum - £3,000
  • Short/medium alternative to fixed rates
  • Also available for Cash NISA & NISA Transfers
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Limited offer - deadlines apply. May close early if oversubscribed
  • Plan designed to be held for full term
  • Arrangement fee applies
  • Returns not guaranteed. You may only recieve a return of your original capital
5 Stock Deposit Kick Out PlanThe Royal Bank of CanadayesUp to 6 years7%
per annum
More Info >
  • 7% for each year provided x5 shares finish above 95% of their starting value  
  • Opportunity to mature early at year 2, 3, 4 or 5
  • Capital protected
  • Medium/long term alternative to fixed rates
  • Also available for Cash NISA & NISA transfers
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Limited offer - deadlines apply. May close early if oversubscribed
  • Plan designed to be held for full term
  • Arrangement fee applies
  • Potential returns based on the performance of 5 shares
  • Returns not guaranteed. You may only receive a return of your original capital
Digital Growth Deposit PlanLloyds Bank Plcyes6 years30%
(after 6 years)
More Info >
  • Target return of 30%
  • Capital protected
  • Low minimum - £3,000
  • Medium/Long term alternative to fixed rates
  • Also available for Cash NISA & NISA Transfers
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Limited offer - deadlines apply. May close early if oversubscribed
  • Plan designed to be held for full term
  • Arrangement fee applies
  • Returns not guaranteed. You may only recieve a return of your original capital
FTSE 5 Step Down Kick Out Deposit PlanLloyds Bank PlcyesUp to 6 years6%
per annum
More Info >
  • 6% for each year provided x5 FTSE 100 shares finish above required level
  • Kick Out level reduces from 100% of opening share levels to 85% over term of plan  
  • Opportunity to mature early at years 3, 4 or 5
  • Capital protected
  • Medium/long term alternative to fixed rates
  • Also available for Cash NISA & NISA transfers
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Limited offer - deadlines apply. May close early if oversubscribed
  • Plan designed to be held for full term
  • Arrangement fee applies
  • Potential returns based on the performance of 5 shares
  • Returns not guaranteed. You may only receive a return of your original capital
Important Information: Structured deposits offer you the potential to earn higher returns than you would with a regular savings account. Your returns are based on the performance of an index or commodity. If the investment does not perform well you may receive no income or capital growth, but you can be confident that your capital will be repaid. You have no access to your deposit during the term of the account, typically 3 to 6 years but your original capital will be repaid in full at the end of the term. In the event that the deposit taker is unable to repay your initial investment and any returns stated you may be entitled to compensation from the Financial Services Compensation Scheme (FSCS) depending on your individual circumstances.

 Important Risk Information:

This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested.

Investments in Stocks & Shares ISAs do not contain the same degree of capital security as investments in deposits. Stocks and shares ISAs are designed as medium to long term investments of, for example, five years or more. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.

Different types of investment carry different levels of risk and may not be suitable for all investors. Please ensure that you read the Important Risk Information for further details. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.