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
Why have a Savings Account that you cannot access?
You will not have instant access to this savings account but the interest rate will be higher as a result, and you can avoid paying tax on the interest.
What is a fixed rate ISA?
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.
With a fixed rate ISA, you agree not to access yours 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.
Alternatives to fixed rate ISAs:
A popular alternative is tracker rate ISAs which 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.
However, the starting rate on a tracker ISA will tend to be lower than for a fixed rate ISA, so the better option will normally depend on how likely you think it is that interest rates will rise over the lifetime of the ISA.
