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: