Fixed Rate Cash ISAs

Compare the AER offered by each provider, which expresses interest on a standardised annual basis. The rate remains fixed for the agreed term, although the total interest earned will depend on your balance, the length of the term and the account’s interest arrangements.

Fixed Rate Cash ISAs commonly offer terms of one, two, three or five years. Consider when you expect to need your savings, as choosing a longer term may mean committing your money beyond your planned spending date.

Check the minimum opening deposit and whether additional payments are permitted after the account is opened. Some providers only accept contributions during a limited funding window, even though the fixed term continues for several years.

Accessing money before maturity may require closing the account and paying a penalty, often calculated as a specified number of days’ interest. Compare the penalty and withdrawal conditions carefully, particularly if you might need your savings before the term ends.

Interest may be paid monthly, annually or at maturity, depending on the account. Check whether it is added to the ISA balance or paid elsewhere, and how the arrangements affect the amount of interest earned over the term.

Check what happens when the fixed term ends, including whether the provider offers a maturity account, a new fixed-rate option or instructions for withdrawing or transferring your savings. Any new interest rate may differ from the rate you originally secured.

Check whether the provider accepts transfers from existing ISAs and whether these are subject to separate deadlines or minimum amounts. Moving ISA savings between providers through the official transfer process helps preserve their tax treatment.

Check whether the provider is covered by the Financial Services Compensation Scheme (FSCS). Eligible Cash ISA deposits are combined with other eligible savings held under the same banking authorisation when calculating the applicable protection limit.