The Financial Services Compensation Scheme (FSCS) guarantees that it will step in to compensate the first £85,000 (£170,000 for a joint account) you have saved with a UK-authorised bank, building society or credit union in the event that the business goes bust.
Compare 3-year fixed rate cash ISAs
Table: sorted by interest rate, promoted deals first
Fixed-rate cash ISAs typically have terms of between 1 and 5 years. Generally speaking, the longer the term, the higher the rate but the greater the commitment.
You’re committing to leaving your money in one place for the duration of the fixed-rate term. Technically you can withdraw your money, but will almost always incur a penalty, so it’s not something to be entered into without careful consideration.
If you opt for a 3 year fixed-rate cash ISA then you might find rates that are better than at the shorter end of the spectrum, though that’s not always the case.
What is a 3-year fixed-rate cash ISA?
Fixed-rate ISAs are a type of cash ISA. Unlike an instant access account with a variable rate, the rate is locked in for 3 years and you can’t withdraw funds without incurring a penalty. This means that you’re really committing to leaving your money alone to grow for 3 years.
You’re allowed to pay up to £20,000 into ISAs each tax year.
Bear in mind that if you put a lump sum in a 3-year account now and rates end up rising in a year, your savings could miss out on the upturn. But the reverse is also true: if interest rates end up falling over the next year, you might be happy that you locked in when you did.
Can I add more money during the 3-year term?
Generally no. You will normally be given a window of time (usually several days or weeks) to deposit funds into the account, and after that time has passed, you can’t add any more money.
From the banks’ point of view, they don’t know what rates will look like in the future. This means that fixed-rated accounts tend to offer an agreed amount based on what interest rates are today.
From the bank’s perspective, if it had promised you a fixed rate and then was happy for you to add more funds while interest rates were falling, the bank would be paying over the odds on an increasing pot of money. A smart bank will always trying to stay ahead of the game and limit the risk it’s exposing itself to.
BUT, thanks to a rule change in April 2024, you can pay into more than one cash ISA in any tax year. So if you miss the window to add more money to a fixed-rate cash ISA, you could always open another one.
Early withdrawal penalties can be harsh, so make sure you’re comfortable leaving your savings alone until your fixed-rate account matures.”
Which are the best 3-year fixed-rate cash ISAs at the moment?
Our best fixed-rate cash ISAs have the highest interest rates. To get the latest rates, we use Moneyfacts data, which covers nearly the full market of savings products and is checked and updated daily. We don’t include accounts from private banks.
All the cash ISAs in our list have savings protection – for most, this is the Financial Services Compensation Scheme (FSCS). Other schemes include that of NS&I, which is 100% backed by HM Treasury, and the Gibraltar Deposit Guarantee Scheme.
Cynergy Bank – Loyalty Fixed Rate Cash ISA - 4.26%
United Trust Bank Ltd 3 Year Cash ISA Deposit Bond - 4.25%
Cynergy Bank – Fixed Rate Cash ISA - 4.25%
United Trust Bank – Cash ISA 3 Year Bond - 4.25%
Close Brothers Savings – 3 Year Fixed Rate Cash ISA - 4.23%
An overview of our 3-year fixed-rate cash ISA comparison
Rates up to
4.26% AER
Number of accounts
96
Minimum investment
£1
Maximum investment
£5,000,000
Opening options
Branch, website, mobile app, post, telephone
Pros and cons of 3-year fixed ISAs
Pros
You can usually get a better rate than on instant access or short-term accounts…
…and it’s tax-free!
The rate is fixed until your account matures, so if market rates come down, yours won’t.
If your circumstances change, then legally you are allowed to withdraw your funds (however you’d incur a penalty in doing so).
Cons
You’ll need to leave the funds to grow for the full 3-year term (or incur a penalty).
If interest rates rise over the 3 years, the rate on your account won’t.
You won’t be able to add more funds during the 3-year term.
Frequently asked questions
Yes, in most cases this is possible, but you'll want to check the funding terms for the specific account that you have in mind. If your existing ISA is a fixed-term product and hasn't matured yet, then bear in mind it will probably charge early exit fees.
Unfortunately not. These are Individual Savings Accounts.
No.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables is provided by Defaqto. In other cases, Finder has sourced data directly from providers.
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Chris Lilly is Head of publishing at finder.com. He's a specialist in personal finance, from day-to-day banking to investing to borrowing, and is passionate about helping UK consumers make informed decisions about their money. In his spare time Chris likes forcing his kids to exercise more. See full bio
Chris's expertise
Chris has written 544 Finder guides across topics including:
Learn more about the pros and cons of 1-year fixed rate cash ISAs
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