Cash ISAs are savings accounts that pay interest free of income tax. This means that no matter how much interest you earn on your savings in the account, you\u2019ll never pay any tax on it. <\/p>
Just like standard savings accounts, there are several types of cash ISAs to choose from. One option is a fixed rate cash ISA<\/a>, which requires you to tie up your money for a set amount of time. In this guide, we explain how 1-year fixed rate cash ISAs work.<\/p><\/div>\n\n \n \n \n <\/div>\n \n \n Be first to know about new deals<\/h2>\n Sign up to receive the latest deals, tips and a chance to win \u00a3400!<\/strong> (T&Cs)\n <\/p>\n <\/div>\n \n \n \n Email address:<\/label>\n \n \n Sign up<\/span>\n <\/span>\n <\/button>\n <\/div>\n Error placeholder<\/span> Click here<\/a> to sign in<\/span><\/p>\n <\/div>\n \n Winners<\/a> | Emails<\/a> | Unsubscribe<\/a> | Privacy<\/a> <\/div>\n <\/div>\n <\/div>\n \n Hide\n \n <\/use>\n <\/svg>\n <\/div>\n <\/div>\n<\/div>\n\nWhat is a 1-year fixed rate cash ISA?<\/h3>A 1-year fixed rate cash ISA is simply a cash ISA that requires you to lock away your savings for a term of 1 year. In return, you receive a fixed rate of interest that is usually higher than you\u2019d get on an easy access cash ISA.<\/p>In many cases, you won\u2019t be able to top up your funds during the term of the account and you won\u2019t usually be able to make withdrawals either \u2013 or if you can, you\u2019ll often pay a penalty fee. This will typically be a number of days\u2019 interest. At the end of the term, your account will mature and you can either withdraw your funds or have them transferred to another ISA.<\/p>When comparing 1-year fixed rate cash ISAs, it\u2019s important to check the minimum deposit requirement for opening the account. This can vary depending on the provider, and in some cases, it can be a few hundred or a few thousand pounds. Keep in mind that the maximum you can pay into ISAs overall stands at \u00a320,000 for the 2026\/2027 tax year. The rules changed on 6 April 2024, so you can now open multiple cash ISA per tax year, rather than just 1, as was the case previously. <\/p>If, when you open your new cash ISA, you want to transfer in funds from another cash ISA with another provider, it\u2019s important to check whether your new cash ISA permits this \u2013 not all cash ISAs allow transfers in, though many do. Transfers do not count towards the current year\u2019s ISA allowance.<\/p>Do I need a cash ISA?<\/h3>Thanks to the personal savings allowance, all basic rate taxpayers can now earn up to \u00a31,000 a year tax-free on any interest from savings and current accounts. Higher rate taxpayers can earn up to \u00a3500, while additional rate taxpayers have no personal savings allowance. <\/p>As a result, if you\u2019re a basic or higher rate taxpayer, you might be wondering whether putting money in a tax-efficient cash ISA is worth it. However, it\u2019s important to keep in mind that interest rates have risen in recent years, which means those with a decent amount in their savings pot could be closer to reaching their personal savings allowance limit. By contrast, saving your money in a cash ISA will ensure that you never get charged tax on your savings, no matter how much interest you earn. <\/p>Ultimately, you might decide you want to keep some of your savings in a standard account and some in a cash ISA. <\/p>How to open an ISA<\/h3>How you open a cash ISA will depend on the provider. You might be able to do this in branch, online, via the provider\u2019s app, by post or over the phone. You will usually need to fill in a short application form and provide a few personal details. You will also need to state whether you want to transfer in funds from another cash ISA elsewhere. <\/p>Unless you\u2019re already a customer with that particular bank\/building society, you will usually need to provide proof of ID, such as a passport or driving licence, and proof of address, such as a utility bill, council tax bill or bank statement.<\/p>Which are the best 1-year fixed-rate cash ISAs at the moment?<\/h3>Our best fixed-rate cash ISAs are the highest interest rates available. To get the latest rates, we use Defaqto data, which covers nearly the full market of savings products and is checked and updated daily. We don\u2019t include accounts from private banks.<\/p>All the cash ISAs in our list have savings protection \u2013 for most, this is the Financial Services Compensation Scheme<\/a> (FSCS). Other schemes include that of NS&I, which is 100% backed by HM Treasury, and the Gibraltar Deposit Guarantee Scheme.<\/p>Here are the best 1-year fixed cash ISA rates as of May 9:<\/p>\n\n\n\n\n\n\n\n\n\n\n\nRank<\/th>\nProvider<\/th>\nRate<\/th>\n<\/tr>\n<\/thead>\n\n\n1<\/th>\nCharter Savings Bank<\/td>\n4.54%<\/td>\n<\/tr>\n\n2<\/th>\nOakNorth<\/td>\n4.53%<\/td>\n<\/tr>\n\n3<\/th>\nUBL UK<\/td>\n4.53%<\/td>\n<\/tr>\n\n4<\/th>\nInvestec Bank plc<\/td>\n4.52%<\/td>\n<\/tr>\n\n5<\/th>\nClose Brothers Savings<\/td>\n4.52%<\/td>\n<\/tr>\n\n6<\/th>\nHargreaves Lansdown Active Savings<\/td>\n4.5%<\/td>\n<\/tr>\n\n7<\/th>\nNationwide Building Society<\/td>\n4.5%<\/td>\n<\/tr>\n\n8<\/th>\nTesco Bank<\/td>\n4.5%<\/td>\n<\/tr>\n\n9<\/th>\nHSBC<\/td>\n4.5%<\/td>\n<\/tr>\n\n10<\/th>\nNewcastle Building Society<\/td>\n4.4%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>An overview of our 1-year fixed-rate cash ISA comparison<\/h3>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nRates up to<\/th>\n\n4.65% AER\n<\/td>\n<\/tr>\n\nNumber of accounts<\/th>\n\n108\n<\/td>\n<\/tr>\n\nMinimum investment<\/th>\n\n\u00a31\n<\/td>\n<\/tr>\n\nMaximum investment<\/th>\n\n\u00a39,000,000\n<\/td>\n<\/tr>\n\nOpening options<\/th>\n\nBranch, website, mobile app, post, telephone<\/td>\n<\/tr>\n<\/tbody>\n<\/table>Pros and cons<\/h3>Pros<\/h4>Earn a fixed rate of interest for the term of the account<\/li>Interest rates are more competitive compared to easy access cash ISAs<\/li>Ideal if you have a lump sum to invest<\/li>No tax is payable on the interest earned<\/li><\/ul><\/div>Cons<\/h4>You won\u2019t be usually able to withdraw cash during the term without penalty <\/li>You often can\u2019t top up your funds during the term<\/li>Interest rates are often less competitive compared to longer term fixed rate cash ISAs<\/li>You won\u2019t be able to pay in more than your annual ISA allowance<\/li><\/ul><\/div><\/div>Bottom line<\/h3>Opening a 1-year fixed rate cash ISA can be a great option if you\u2019d like to lock away a lump sum of cash<\/a> for a short amount of time in return for a higher interest rate. It can be a sensible choice if interest rates are rising as locking your money away for a longer period could result in you being stuck with an account that later becomes uncompetitive. <\/p>Frequently asked questions<\/h3>\n\t\n \n \n \n Are 1-year fixed rate cash ISAs safe?<\/span>\n \n <\/use>\n <\/use>\n <\/svg>\n <\/button>\n <\/h4>\n <\/div>\n \n \n \n Yes, if your provider is authorised by the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA), it must protect customer deposits under the Financial Services Compensation Scheme<\/a> (FSCS).<\/p>This means that up to \u00a3120,000 of your money will be protected per person, per banking institution in the event your bank went bust. If this happens, you'll be able to make a claim to the FSCS and get your money back.<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/li>\n\n \n \n \n How many cash ISAs can I have?<\/span>\n \n <\/use>\n <\/use>\n <\/svg>\n <\/button>\n <\/h4>\n <\/div>\n \n \n \n You can hold several cash ISAs. As of 6 April 2024, you can open and deposit money into multiple cash ISAs each tax year.<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/li>\n\n \n \n \n What is the annual ISA allowance?<\/span>\n \n <\/use>\n <\/use>\n <\/svg>\n <\/button>\n <\/h4>\n <\/div>\n \n \n \n For the 2026\/2027 tax year, you can pay up to \u00a320,000 into an ISA. You can save this amount into one type of account or split it across some or all of the different types of ISA (cash, stocks and shares, lifetime and innovative finance ISA).<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/li>\n\n<\/ul>\nSources<\/h3>\n<\/div>\n
Sign up to receive the latest deals, tips and a chance to win \u00a3400!<\/strong> (T&Cs)\n <\/p>\n <\/div>\n \n \n \n Email address:<\/label>\n \n \n Sign up<\/span>\n <\/span>\n <\/button>\n <\/div>\n Error placeholder<\/span> Click here<\/a> to sign in<\/span><\/p>\n <\/div>\n \n Winners<\/a> | Emails<\/a> | Unsubscribe<\/a> | Privacy<\/a> <\/div>\n <\/div>\n <\/div>\n \n Hide\n \n <\/use>\n <\/svg>\n <\/div>\n <\/div>\n<\/div>\n\nWhat is a 1-year fixed rate cash ISA?<\/h3>A 1-year fixed rate cash ISA is simply a cash ISA that requires you to lock away your savings for a term of 1 year. In return, you receive a fixed rate of interest that is usually higher than you\u2019d get on an easy access cash ISA.<\/p>In many cases, you won\u2019t be able to top up your funds during the term of the account and you won\u2019t usually be able to make withdrawals either \u2013 or if you can, you\u2019ll often pay a penalty fee. This will typically be a number of days\u2019 interest. At the end of the term, your account will mature and you can either withdraw your funds or have them transferred to another ISA.<\/p>When comparing 1-year fixed rate cash ISAs, it\u2019s important to check the minimum deposit requirement for opening the account. This can vary depending on the provider, and in some cases, it can be a few hundred or a few thousand pounds. Keep in mind that the maximum you can pay into ISAs overall stands at \u00a320,000 for the 2026\/2027 tax year. The rules changed on 6 April 2024, so you can now open multiple cash ISA per tax year, rather than just 1, as was the case previously. <\/p>If, when you open your new cash ISA, you want to transfer in funds from another cash ISA with another provider, it\u2019s important to check whether your new cash ISA permits this \u2013 not all cash ISAs allow transfers in, though many do. Transfers do not count towards the current year\u2019s ISA allowance.<\/p>Do I need a cash ISA?<\/h3>Thanks to the personal savings allowance, all basic rate taxpayers can now earn up to \u00a31,000 a year tax-free on any interest from savings and current accounts. Higher rate taxpayers can earn up to \u00a3500, while additional rate taxpayers have no personal savings allowance. <\/p>As a result, if you\u2019re a basic or higher rate taxpayer, you might be wondering whether putting money in a tax-efficient cash ISA is worth it. However, it\u2019s important to keep in mind that interest rates have risen in recent years, which means those with a decent amount in their savings pot could be closer to reaching their personal savings allowance limit. By contrast, saving your money in a cash ISA will ensure that you never get charged tax on your savings, no matter how much interest you earn. <\/p>Ultimately, you might decide you want to keep some of your savings in a standard account and some in a cash ISA. <\/p>How to open an ISA<\/h3>How you open a cash ISA will depend on the provider. You might be able to do this in branch, online, via the provider\u2019s app, by post or over the phone. You will usually need to fill in a short application form and provide a few personal details. You will also need to state whether you want to transfer in funds from another cash ISA elsewhere. <\/p>Unless you\u2019re already a customer with that particular bank\/building society, you will usually need to provide proof of ID, such as a passport or driving licence, and proof of address, such as a utility bill, council tax bill or bank statement.<\/p>Which are the best 1-year fixed-rate cash ISAs at the moment?<\/h3>Our best fixed-rate cash ISAs are the highest interest rates available. To get the latest rates, we use Defaqto data, which covers nearly the full market of savings products and is checked and updated daily. We don\u2019t include accounts from private banks.<\/p>All the cash ISAs in our list have savings protection \u2013 for most, this is the Financial Services Compensation Scheme<\/a> (FSCS). Other schemes include that of NS&I, which is 100% backed by HM Treasury, and the Gibraltar Deposit Guarantee Scheme.<\/p>Here are the best 1-year fixed cash ISA rates as of May 9:<\/p>\n\n\n\n\n\n\n\n\n\n\n\nRank<\/th>\nProvider<\/th>\nRate<\/th>\n<\/tr>\n<\/thead>\n\n\n1<\/th>\nCharter Savings Bank<\/td>\n4.54%<\/td>\n<\/tr>\n\n2<\/th>\nOakNorth<\/td>\n4.53%<\/td>\n<\/tr>\n\n3<\/th>\nUBL UK<\/td>\n4.53%<\/td>\n<\/tr>\n\n4<\/th>\nInvestec Bank plc<\/td>\n4.52%<\/td>\n<\/tr>\n\n5<\/th>\nClose Brothers Savings<\/td>\n4.52%<\/td>\n<\/tr>\n\n6<\/th>\nHargreaves Lansdown Active Savings<\/td>\n4.5%<\/td>\n<\/tr>\n\n7<\/th>\nNationwide Building Society<\/td>\n4.5%<\/td>\n<\/tr>\n\n8<\/th>\nTesco Bank<\/td>\n4.5%<\/td>\n<\/tr>\n\n9<\/th>\nHSBC<\/td>\n4.5%<\/td>\n<\/tr>\n\n10<\/th>\nNewcastle Building Society<\/td>\n4.4%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>An overview of our 1-year fixed-rate cash ISA comparison<\/h3>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nRates up to<\/th>\n\n4.65% AER\n<\/td>\n<\/tr>\n\nNumber of accounts<\/th>\n\n108\n<\/td>\n<\/tr>\n\nMinimum investment<\/th>\n\n\u00a31\n<\/td>\n<\/tr>\n\nMaximum investment<\/th>\n\n\u00a39,000,000\n<\/td>\n<\/tr>\n\nOpening options<\/th>\n\nBranch, website, mobile app, post, telephone<\/td>\n<\/tr>\n<\/tbody>\n<\/table>Pros and cons<\/h3>Pros<\/h4>Earn a fixed rate of interest for the term of the account<\/li>Interest rates are more competitive compared to easy access cash ISAs<\/li>Ideal if you have a lump sum to invest<\/li>No tax is payable on the interest earned<\/li><\/ul><\/div>Cons<\/h4>You won\u2019t be usually able to withdraw cash during the term without penalty <\/li>You often can\u2019t top up your funds during the term<\/li>Interest rates are often less competitive compared to longer term fixed rate cash ISAs<\/li>You won\u2019t be able to pay in more than your annual ISA allowance<\/li><\/ul><\/div><\/div>Bottom line<\/h3>Opening a 1-year fixed rate cash ISA can be a great option if you\u2019d like to lock away a lump sum of cash<\/a> for a short amount of time in return for a higher interest rate. It can be a sensible choice if interest rates are rising as locking your money away for a longer period could result in you being stuck with an account that later becomes uncompetitive. <\/p>Frequently asked questions<\/h3>\n\t\n \n \n \n Are 1-year fixed rate cash ISAs safe?<\/span>\n \n <\/use>\n <\/use>\n <\/svg>\n <\/button>\n <\/h4>\n <\/div>\n \n \n \n Yes, if your provider is authorised by the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA), it must protect customer deposits under the Financial Services Compensation Scheme<\/a> (FSCS).<\/p>This means that up to \u00a3120,000 of your money will be protected per person, per banking institution in the event your bank went bust. If this happens, you'll be able to make a claim to the FSCS and get your money back.<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/li>\n\n \n \n \n How many cash ISAs can I have?<\/span>\n \n <\/use>\n <\/use>\n <\/svg>\n <\/button>\n <\/h4>\n <\/div>\n \n \n \n You can hold several cash ISAs. As of 6 April 2024, you can open and deposit money into multiple cash ISAs each tax year.<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/li>\n\n \n \n \n What is the annual ISA allowance?<\/span>\n \n <\/use>\n <\/use>\n <\/svg>\n <\/button>\n <\/h4>\n <\/div>\n \n \n \n For the 2026\/2027 tax year, you can pay up to \u00a320,000 into an ISA. You can save this amount into one type of account or split it across some or all of the different types of ISA (cash, stocks and shares, lifetime and innovative finance ISA).<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/li>\n\n<\/ul>\nSources<\/h3>\n<\/div>\n
Error placeholder<\/span> Click here<\/a> to sign in<\/span><\/p>\n <\/div>\n \n Winners<\/a> | Emails<\/a> | Unsubscribe<\/a> | Privacy<\/a> <\/div>\n <\/div>\n <\/div>\n \n Hide\n \n <\/use>\n <\/svg>\n <\/div>\n <\/div>\n<\/div>\n\nWhat is a 1-year fixed rate cash ISA?<\/h3>A 1-year fixed rate cash ISA is simply a cash ISA that requires you to lock away your savings for a term of 1 year. In return, you receive a fixed rate of interest that is usually higher than you\u2019d get on an easy access cash ISA.<\/p>In many cases, you won\u2019t be able to top up your funds during the term of the account and you won\u2019t usually be able to make withdrawals either \u2013 or if you can, you\u2019ll often pay a penalty fee. This will typically be a number of days\u2019 interest. At the end of the term, your account will mature and you can either withdraw your funds or have them transferred to another ISA.<\/p>When comparing 1-year fixed rate cash ISAs, it\u2019s important to check the minimum deposit requirement for opening the account. This can vary depending on the provider, and in some cases, it can be a few hundred or a few thousand pounds. Keep in mind that the maximum you can pay into ISAs overall stands at \u00a320,000 for the 2026\/2027 tax year. The rules changed on 6 April 2024, so you can now open multiple cash ISA per tax year, rather than just 1, as was the case previously. <\/p>If, when you open your new cash ISA, you want to transfer in funds from another cash ISA with another provider, it\u2019s important to check whether your new cash ISA permits this \u2013 not all cash ISAs allow transfers in, though many do. Transfers do not count towards the current year\u2019s ISA allowance.<\/p>Do I need a cash ISA?<\/h3>Thanks to the personal savings allowance, all basic rate taxpayers can now earn up to \u00a31,000 a year tax-free on any interest from savings and current accounts. Higher rate taxpayers can earn up to \u00a3500, while additional rate taxpayers have no personal savings allowance. <\/p>As a result, if you\u2019re a basic or higher rate taxpayer, you might be wondering whether putting money in a tax-efficient cash ISA is worth it. However, it\u2019s important to keep in mind that interest rates have risen in recent years, which means those with a decent amount in their savings pot could be closer to reaching their personal savings allowance limit. By contrast, saving your money in a cash ISA will ensure that you never get charged tax on your savings, no matter how much interest you earn. <\/p>Ultimately, you might decide you want to keep some of your savings in a standard account and some in a cash ISA. <\/p>How to open an ISA<\/h3>How you open a cash ISA will depend on the provider. You might be able to do this in branch, online, via the provider\u2019s app, by post or over the phone. You will usually need to fill in a short application form and provide a few personal details. You will also need to state whether you want to transfer in funds from another cash ISA elsewhere. <\/p>Unless you\u2019re already a customer with that particular bank\/building society, you will usually need to provide proof of ID, such as a passport or driving licence, and proof of address, such as a utility bill, council tax bill or bank statement.<\/p>Which are the best 1-year fixed-rate cash ISAs at the moment?<\/h3>Our best fixed-rate cash ISAs are the highest interest rates available. To get the latest rates, we use Defaqto data, which covers nearly the full market of savings products and is checked and updated daily. We don\u2019t include accounts from private banks.<\/p>All the cash ISAs in our list have savings protection \u2013 for most, this is the Financial Services Compensation Scheme<\/a> (FSCS). Other schemes include that of NS&I, which is 100% backed by HM Treasury, and the Gibraltar Deposit Guarantee Scheme.<\/p>Here are the best 1-year fixed cash ISA rates as of May 9:<\/p>\n\n\n\n\n\n\n\n\n\n\n\nRank<\/th>\nProvider<\/th>\nRate<\/th>\n<\/tr>\n<\/thead>\n\n\n1<\/th>\nCharter Savings Bank<\/td>\n4.54%<\/td>\n<\/tr>\n\n2<\/th>\nOakNorth<\/td>\n4.53%<\/td>\n<\/tr>\n\n3<\/th>\nUBL UK<\/td>\n4.53%<\/td>\n<\/tr>\n\n4<\/th>\nInvestec Bank plc<\/td>\n4.52%<\/td>\n<\/tr>\n\n5<\/th>\nClose Brothers Savings<\/td>\n4.52%<\/td>\n<\/tr>\n\n6<\/th>\nHargreaves Lansdown Active Savings<\/td>\n4.5%<\/td>\n<\/tr>\n\n7<\/th>\nNationwide Building Society<\/td>\n4.5%<\/td>\n<\/tr>\n\n8<\/th>\nTesco Bank<\/td>\n4.5%<\/td>\n<\/tr>\n\n9<\/th>\nHSBC<\/td>\n4.5%<\/td>\n<\/tr>\n\n10<\/th>\nNewcastle Building Society<\/td>\n4.4%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>An overview of our 1-year fixed-rate cash ISA comparison<\/h3>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nRates up to<\/th>\n\n4.65% AER\n<\/td>\n<\/tr>\n\nNumber of accounts<\/th>\n\n108\n<\/td>\n<\/tr>\n\nMinimum investment<\/th>\n\n\u00a31\n<\/td>\n<\/tr>\n\nMaximum investment<\/th>\n\n\u00a39,000,000\n<\/td>\n<\/tr>\n\nOpening options<\/th>\n\nBranch, website, mobile app, post, telephone<\/td>\n<\/tr>\n<\/tbody>\n<\/table>Pros and cons<\/h3>Pros<\/h4>Earn a fixed rate of interest for the term of the account<\/li>Interest rates are more competitive compared to easy access cash ISAs<\/li>Ideal if you have a lump sum to invest<\/li>No tax is payable on the interest earned<\/li><\/ul><\/div>Cons<\/h4>You won\u2019t be usually able to withdraw cash during the term without penalty <\/li>You often can\u2019t top up your funds during the term<\/li>Interest rates are often less competitive compared to longer term fixed rate cash ISAs<\/li>You won\u2019t be able to pay in more than your annual ISA allowance<\/li><\/ul><\/div><\/div>Bottom line<\/h3>Opening a 1-year fixed rate cash ISA can be a great option if you\u2019d like to lock away a lump sum of cash<\/a> for a short amount of time in return for a higher interest rate. It can be a sensible choice if interest rates are rising as locking your money away for a longer period could result in you being stuck with an account that later becomes uncompetitive. <\/p>Frequently asked questions<\/h3>\n\t\n \n \n \n Are 1-year fixed rate cash ISAs safe?<\/span>\n \n <\/use>\n <\/use>\n <\/svg>\n <\/button>\n <\/h4>\n <\/div>\n \n \n \n Yes, if your provider is authorised by the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA), it must protect customer deposits under the Financial Services Compensation Scheme<\/a> (FSCS).<\/p>This means that up to \u00a3120,000 of your money will be protected per person, per banking institution in the event your bank went bust. If this happens, you'll be able to make a claim to the FSCS and get your money back.<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/li>\n\n \n \n \n How many cash ISAs can I have?<\/span>\n \n <\/use>\n <\/use>\n <\/svg>\n <\/button>\n <\/h4>\n <\/div>\n \n \n \n You can hold several cash ISAs. As of 6 April 2024, you can open and deposit money into multiple cash ISAs each tax year.<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/li>\n\n \n \n \n What is the annual ISA allowance?<\/span>\n \n <\/use>\n <\/use>\n <\/svg>\n <\/button>\n <\/h4>\n <\/div>\n \n \n \n For the 2026\/2027 tax year, you can pay up to \u00a320,000 into an ISA. You can save this amount into one type of account or split it across some or all of the different types of ISA (cash, stocks and shares, lifetime and innovative finance ISA).<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/li>\n\n<\/ul>\nSources<\/h3>\n<\/div>\n
A 1-year fixed rate cash ISA is simply a cash ISA that requires you to lock away your savings for a term of 1 year. In return, you receive a fixed rate of interest that is usually higher than you\u2019d get on an easy access cash ISA.<\/p>
In many cases, you won\u2019t be able to top up your funds during the term of the account and you won\u2019t usually be able to make withdrawals either \u2013 or if you can, you\u2019ll often pay a penalty fee. This will typically be a number of days\u2019 interest. At the end of the term, your account will mature and you can either withdraw your funds or have them transferred to another ISA.<\/p>
When comparing 1-year fixed rate cash ISAs, it\u2019s important to check the minimum deposit requirement for opening the account. This can vary depending on the provider, and in some cases, it can be a few hundred or a few thousand pounds. Keep in mind that the maximum you can pay into ISAs overall stands at \u00a320,000 for the 2026\/2027 tax year. The rules changed on 6 April 2024, so you can now open multiple cash ISA per tax year, rather than just 1, as was the case previously. <\/p>
If, when you open your new cash ISA, you want to transfer in funds from another cash ISA with another provider, it\u2019s important to check whether your new cash ISA permits this \u2013 not all cash ISAs allow transfers in, though many do. Transfers do not count towards the current year\u2019s ISA allowance.<\/p>
Thanks to the personal savings allowance, all basic rate taxpayers can now earn up to \u00a31,000 a year tax-free on any interest from savings and current accounts. Higher rate taxpayers can earn up to \u00a3500, while additional rate taxpayers have no personal savings allowance. <\/p>
As a result, if you\u2019re a basic or higher rate taxpayer, you might be wondering whether putting money in a tax-efficient cash ISA is worth it. However, it\u2019s important to keep in mind that interest rates have risen in recent years, which means those with a decent amount in their savings pot could be closer to reaching their personal savings allowance limit. By contrast, saving your money in a cash ISA will ensure that you never get charged tax on your savings, no matter how much interest you earn. <\/p>
Ultimately, you might decide you want to keep some of your savings in a standard account and some in a cash ISA. <\/p>
How you open a cash ISA will depend on the provider. You might be able to do this in branch, online, via the provider\u2019s app, by post or over the phone. You will usually need to fill in a short application form and provide a few personal details. You will also need to state whether you want to transfer in funds from another cash ISA elsewhere. <\/p>
Unless you\u2019re already a customer with that particular bank\/building society, you will usually need to provide proof of ID, such as a passport or driving licence, and proof of address, such as a utility bill, council tax bill or bank statement.<\/p>
Our best fixed-rate cash ISAs are the highest interest rates available. To get the latest rates, we use Defaqto data, which covers nearly the full market of savings products and is checked and updated daily. We don\u2019t include accounts from private banks.<\/p>
All the cash ISAs in our list have savings protection \u2013 for most, this is the Financial Services Compensation Scheme<\/a> (FSCS). Other schemes include that of NS&I, which is 100% backed by HM Treasury, and the Gibraltar Deposit Guarantee Scheme.<\/p>Here are the best 1-year fixed cash ISA rates as of May 9:<\/p>\n\n\n\n\n\n\n\n\n
Here are the best 1-year fixed cash ISA rates as of May 9:<\/p>\n\n\n\n\n\n\n\n\n
Opening a 1-year fixed rate cash ISA can be a great option if you\u2019d like to lock away a lump sum of cash<\/a> for a short amount of time in return for a higher interest rate. It can be a sensible choice if interest rates are rising as locking your money away for a longer period could result in you being stuck with an account that later becomes uncompetitive. <\/p>Frequently asked questions<\/h3>\n\t\n \n \n \n Are 1-year fixed rate cash ISAs safe?<\/span>\n \n <\/use>\n <\/use>\n <\/svg>\n <\/button>\n <\/h4>\n <\/div>\n \n \n \n Yes, if your provider is authorised by the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA), it must protect customer deposits under the Financial Services Compensation Scheme<\/a> (FSCS).<\/p>This means that up to \u00a3120,000 of your money will be protected per person, per banking institution in the event your bank went bust. If this happens, you'll be able to make a claim to the FSCS and get your money back.<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/li>\n\n \n \n \n How many cash ISAs can I have?<\/span>\n \n <\/use>\n <\/use>\n <\/svg>\n <\/button>\n <\/h4>\n <\/div>\n \n \n \n You can hold several cash ISAs. As of 6 April 2024, you can open and deposit money into multiple cash ISAs each tax year.<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/li>\n\n \n \n \n What is the annual ISA allowance?<\/span>\n \n <\/use>\n <\/use>\n <\/svg>\n <\/button>\n <\/h4>\n <\/div>\n \n \n \n For the 2026\/2027 tax year, you can pay up to \u00a320,000 into an ISA. You can save this amount into one type of account or split it across some or all of the different types of ISA (cash, stocks and shares, lifetime and innovative finance ISA).<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/li>\n\n<\/ul>\nSources<\/h3>\n<\/div>\n
Yes, if your provider is authorised by the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA), it must protect customer deposits under the Financial Services Compensation Scheme<\/a> (FSCS).<\/p>This means that up to \u00a3120,000 of your money will be protected per person, per banking institution in the event your bank went bust. If this happens, you'll be able to make a claim to the FSCS and get your money back.<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/li>\n\n \n \n \n How many cash ISAs can I have?<\/span>\n \n <\/use>\n <\/use>\n <\/svg>\n <\/button>\n <\/h4>\n <\/div>\n \n \n \n You can hold several cash ISAs. As of 6 April 2024, you can open and deposit money into multiple cash ISAs each tax year.<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/li>\n\n \n \n \n What is the annual ISA allowance?<\/span>\n \n <\/use>\n <\/use>\n <\/svg>\n <\/button>\n <\/h4>\n <\/div>\n \n \n \n For the 2026\/2027 tax year, you can pay up to \u00a320,000 into an ISA. You can save this amount into one type of account or split it across some or all of the different types of ISA (cash, stocks and shares, lifetime and innovative finance ISA).<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/li>\n\n<\/ul>\nSources<\/h3>\n<\/div>\n
This means that up to \u00a3120,000 of your money will be protected per person, per banking institution in the event your bank went bust. If this happens, you'll be able to make a claim to the FSCS and get your money back.<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/li>\n
You can hold several cash ISAs. As of 6 April 2024, you can open and deposit money into multiple cash ISAs each tax year.<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/li>\n
For the 2026\/2027 tax year, you can pay up to \u00a320,000 into an ISA. You can save this amount into one type of account or split it across some or all of the different types of ISA (cash, stocks and shares, lifetime and innovative finance ISA).<\/p>\n <\/div>\n <\/div>\n <\/div>\n<\/li>\n\n<\/ul>\n
![\"newsletter-image\"](\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/3\/2024\/08\/george4.png\")
\n <\/div>\n