ISA transfers also allowed in (some providers charge a transfer fee). Open and manage online. Withdrawals permitted subject to 90 days loss of interest. Online ISA is provided by OneFamily, savings in Post Office Cash ISAs are deposited with Bank of Ireland UK. FSCS Protected
Make up to three withdrawals during the 12-month term of this account. ISA transfers in allowed. Invest up to £20,000 per tax year. Manage your account online. Make more than three withdrawals and the rate drops to 1.75% AER/gross p.a. (variable). Not available in branch. FSCS Protected.
ISA transfers also allowed in (some providers charge a transfer fee). Open and manage online. Withdrawals permitted subject to 90 days loss of interest. Online ISA is provided by OneFamily, savings in Post Office Cash ISAs are deposited with Bank of Ireland UK. FSCS Protected
Fixed rate ISAs allow you to earn a guaranteed rate of interest on your savings without paying tax on that interest. They are normally offered over 1-3 years, with the level of interest staying the same for the entire period of the ISA. For the 2022-23 tax year, over-18s can place up to £20,000 in an ISA.
With a fixed rate ISA, the trade-off you make for the guaranteed rate of return is that you agree not to access your savings during the life of the product. Legally, ISA providers do have to allow you access to your money if you need it, but they can (and normally do) charge heavy penalty fees for this.
Benefits of fixed rate cash ISAs
Fixed rate ISAs allow you to earn a guaranteed return, making them a good choice for those who do not want to take risks. You can normally roll the ISA over when it ends, moving your savings straight into a new fixed rate ISA if you do not need to use them when the original product term ends.
Alternatives to fixed rate cash ISAs
One of the main alternatives to a fixed rate ISA is an Easy Access ISA. These allow you to pay in and take out money whenever you like and offer a variable rate of interest in return. This gives you much more flexibility with your savings, but there is no guarantee how much you will earn in interest and it is often less than you would earn with a fixed rate ISA.
Another popular alternative is tracker rate ISAs. These give you a rate of interest which is tied to a base rate (often the Bank of England base rate) plus a set extra percentage. If the base rate moves up, your interest rate will move up in line with it.
A tracker ISA means that if interest rates increase, so will the rate you earn on your savings. By comparison, a fixed rate ISA will pay exactly the same interest rate even if general interest rates go up.
However, the starting rate on a tracker ISA will tend to be lower than for a fixed rate ISA, so which is the better option will normally depend on how likely you think it is that interest rates will rise over the lifetime of the ISA.
Fixed rate cash ISA interest rates
The interest rates on fixed rate ISAs can differ considerably between providers, so it is essential to look at as many different products and providers as possible before making a decision.
Compare fixed rate cash ISAs
Our fixed rate ISA comparison tool at the top of the page allows you to quickly and straightforwardly compare the best deals on fixed rate ISAs from across the whole market. This means you can be confident you are getting the best possible deal on your tax-free savings.
We keep this page regularly updated with the best fixed rate ISA deals we have selected from all the leading providers, so make sure to check back whenever you need to compare the best fixed-rate ISAs currently available.
