| Rank | Provider | Rate (AER) |
|---|---|---|
| 1 | Tandem Bank | 5.16% |
| 2 | Monzo Bank | 5.15% |
| 3 | UBL UK | 5.15% |
| 4 | Castle Trust Bank | 5.15% |
| 5 | Close Brothers Savings | 5.11% |
| 6 | Secure Trust Bank | 5.11% |
| 7 | Meteor | 5.1% |
| 8 | United Trust Bank | 5.05% |
| 9 | Aldermore | 5.03% |
| 10 | Charter Savings Bank | 5.01% |
The Financial Services Compensation Scheme (FSCS) guarantees that it will step in to compensate the first £120,000 you have saved with a UK-authorised bank, building society or credit union in the event that the business goes bust.
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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.
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 a total of £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.
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 try 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.”
| Rates up to | 5.16% AER |
|---|---|
| Number of accounts | 64 |
| Minimum investment | £1 |
| Maximum investment | £10,000,000 |
| Opening options | Branch, website, mobile app, post, telephone |
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Find all you need to know about 5-year fixed-rate cash ISAs and scan live rates.
Find out more about the pros and cons of 2-year fixed rate cash ISAs
Learn more about the pros and cons of 1-year fixed rate cash ISAs
