Updated 27th August 2022
Guaranteed Non-Variable rates
Fixed rate Cash ISA accounts offer a guaranteed return over the lifespan of the investment. Unlike most instant/early access Cash ISA’s, whose interest rate is subject to change, dependant upon market conditions and movements in the Bank of England base rate.
Low interest rate environment
In the low interest rate environment that we currently live in, fixed interest Cash ISA’s offer the chance to earn tax free interest at more attractive rates than their instant access companions, but at the cost of accessing your money for longer periods of time, generally 1 – 5 years.
Penalty charge
One thing to be wary of with fixed rate accounts, is the penalty charge you will suffer, if you need to make a withdrawal before the term ends. The charge often means you forfeit between 180 days and, in some cases, 360 days of interest on the amount withdrawn.
Why choose a Fixed rate Cash ISA account?
The below Fixed rate Cash ISA accounts make good sense, if you are happy to keep your money tied up for the duration of the product’s term and have the opinion that the Bank of England base rate is not likely to see a significant increase during that term.
Who can open a Cash ISA account?
Any UK resident 16 years old or over. Though, for some of the below accounts you will need to be at least 18 years old.
Product List
There are some better rates available, but I’ve chosen not to include cash ISA accounts that are only open to existing customers, or have other account opening restrictions.
1 Year fixed rate
UBL 1 Year Fixed Rate Cash ISA
UBL offer a rate of 2.51 %, but only requires a minimum deposit of £ 2,000.00 in order to open the account.
This account can be only be opened and managed online, by mobile, branch or post. You also have to be 18 years old to open.
Note, partial withdrawals are not permitted, though you may transfer the full ISA to another provider or close the account.
Provider: UBL
Interest rate/AER: 2.51 %
Withdrawal penalty: 90 days interest( on full transfer or closure)
Flexible?: No
Transfer in allowed?: Yes(but only from another cash ISA)
Min Initial Deposit: £ 2,000.00
When is interest paid?: On maturity
Aldermore 1 Year Fixed Rate Cash ISA
Aldermore offer a rate of 2.40 %, but only requires a minimum deposit of £ 1,000.00 in order to open the account.
This account can be only be opened and managed online. You also have to be 18 years old to open.
This account is flexible
Provider: Aldermore
Interest rate/AER: 2.40 %
Withdrawal penalty: 90 days interest
Flexible?: Yes
Transfer in allowed?: Yes
Min Initial Deposit: £ 1,000.00
When is interest paid?: Annually
Shawbrook Bank 1 Year Fixed Rate Cash ISA Bond Issue 62
Shawbrook also offer a rate of 2.37 %, but only requires a minimum balance of £ 1,000.00 in order to receive this rate.
This account can be only be opened and managed online. You also have to be 18 years old to open.
Provider: Shawbrook Bank
Interest rate/AER: 2.37 %
Withdrawal penalty: 90 days interest
Flexible?: No
Transfer in allowed?: Yes
Min Initial Deposit: £ 1,000.00
When is interest paid?: Monthly or Annually
Paragon Bank 1 Year Fixed Rate Cash ISA
Paragon offers a rate of 2.36 % AER fixed for a period of 1 year.
This account can be only be opened and managed online. You also have to be 18 years old to open.
Unlimited withdrawals are allowed, but are subject to a loss of 90 days interest.
This is a flexible ISA, which means withdrawals can be replaced within the same tax year without affecting your yearly ISA allowance. The other 1 year options listed here are not flexible.
Withdrawal penalty: 90 days interest
Provider: Paragon Bank
Interest rate/AER: 2.36 % Variable.
Flexible? Yes
Transfer in allowed? Yes
Min Initial Deposit: £ 500.00
When is interest paid?: Monthly or Annually
Leeds Building Society 1 Year Fixed Rate Cash ISA (Issue 168)
Leeds Building Society’s 1 year fixed rate offering has an interest rate of 1.90%. This interest rate is only paid if your balance remains over £ 100.00, if the balance drops below this figure, then the interest rate drops to 0.05%.
This account can be only be opened and managed online, by post or branch. You also have to be 16 years old to open.
Provider: Leeds Building Society
Interest rate/AER: 1.90% (if your balance falls below £100.00, the interest rate drops to 0.05%)
Withdrawal penalty: 60 days interest
Flexible?: No
Transfer in allowed?: Yes
Min Initial Deposit: £ 100.00
When is interest paid?: Annually
2 Year fixed rate
UBL 2 Year Fixed Rate Cash ISA
UBL offer a rate of 2.87 %, but only requires a minimum deposit of £ 2,000.00 in order to open the account.
This account can be only be opened and managed online, by mobile, branch or post. You also have to be 18 years old to open.
Note, partial withdrawals are not permitted, though you may transfer the full ISA to another provider or close the account.
Provider: UBL
Interest rate/AER: 2.87 %
Withdrawal penalty: 180 days interest( on full transfer or closure)
Flexible?: No
Transfer in allowed?: Yes(but only from another cash ISA)
Min Initial Deposit: £ 2,000.00
When is interest paid?: On maturity
Aldermore 2 Year Fixed Rate Cash ISA
Aldermore offer a rate of 2.85 %, but only requires a minimum deposit of £ 1,000.00 in order to open the account.
This account can be only be opened and managed online. You also have to be 18 years old to open.
This account is flexible
Provider: Aldermore
Interest rate/AER: 2.85 %
Withdrawal penalty: 90 days interest
Flexible?: Yes
Transfer in allowed?: Yes
Min Initial Deposit: £ 1,000.00
When is interest paid?: Annually
Shawbrook Bank 2 Year Fixed Rate Cash ISA Bond Issue 63
Charter Saving Bank’s 2 year fixed rate Cash ISA currently offers a rate of 2.80 % with a withdrawal penalty of 180 day’s lost interest on the withdrawn amount.
Provider: Shawbrook
Interest rate/AER: 2.80 %
Withdrawal penalty: 180 days interest
Flexible?: No
Transfer in allowed?: Yes
Min Initial Deposit: £ 1,000.00
When is interest paid?: Monthly or Annually
Paragon Bank 2 Year Fixed Rate Cash ISA
Paragon offers a rate of 2.75 % AER fixed for a period of 2 years.
This account can be only be opened and managed online. You also have to be 18 years old to open.
Unlimited withdrawals are allowed, but are subject to a loss of 180 days interest.
This is a flexible ISA, which means withdrawals can be replaced within the same tax year without affecting your yearly ISA allowance.
Withdrawal penalty: 180 days interest
Provider: Paragon Bank
Interest rate/AER: 2.75 % Variable.
Flexible? Yes
Transfer in allowed? Yes
Min Initial Deposit: £ 500.00
When is interest paid?: Monthly or Annually
3 Year fixed rate
UBL 3 Year Fixed Rate Cash ISA
UBL offer a rate of 2.92 %, but only requires a minimum deposit of £ 2,000.00 in order to open the account.
This account can be only be opened and managed online, by mobile, branch or post. You also have to be 18 years old to open.
Note, partial withdrawals are not permitted, though you may transfer the full ISA to another provider or close the account.
Provider: UBL
Interest rate/AER: 2.92 %
Withdrawal penalty: 270 days interest( on full transfer or closure)
Flexible?: No
Transfer in allowed?: Yes(but only from another cash ISA)
Min Initial Deposit: £ 2,000.00
When is interest paid?: On maturity
Aldermore 3 Year fixed rate Cash ISA
Aldermore’s 3 year fixed rate returns a fixed rate of 2.90 %. This ISA is also flexible, making this an attractive option.
This account can only be opened and managed online. You also have to be 18 years old to open.
Provider: Aldermore
Interest rate/AER: 2.90 %
Withdrawal penalty: 180 days interest
Flexible?: Yes
Transfer in allowed?: Yes
Min Initial Deposit: £ 1,000.00
When is interest paid?: Annually or Monthly
Shawbrook Bank 3 Year Fixed Rate Cash ISA
Shawbrook’s 3 year fixed rate Cash ISA currently offers a rate of 2.82 % with a withdrawal penalty of 270 day’s lost interest on the withdrawn amount.
Provider: Shawbrook
Interest rate/AER: 2.82 %
Withdrawal penalty: 270 days interest
Flexible?: No
Transfer in allowed?: Yes
Min Initial Deposit: £ 1,000.00
When is interest paid?: Monthly or Annually
5 Year fixed rate
West Brom Bulding Society
WeBSave 5 Year ISA
West Brom are offering 3.10 % on their 5 year fixed rate ISA. This account can be opened with a minimum deposit of £ 1.
Withdrawals are only allowed to close or transfer to another ISA, and suffer a penalty of 240 days loss of interest.
The account can be opened and managed online.
Provider: West Brom Building Society
Interest rate/AER: 3.10 %
Withdrawal penalty: 240 days interest
Flexible?: No
Transfer in allowed?: Yes
Min Initial Deposit: £ 1
When is interest paid?: Annually
UBL 5 Year Fixed Rate Cash ISA
UBL offer a rate of 3.10 %, but only requires a minimum deposit of £ 2,000.00 in order to open the account.
This account can be only be opened and managed online, by mobile, branch or post. You also have to be 18 years old to open.
Note, partial withdrawals are not permitted, though you may transfer the full ISA to another provider or close the account.
Provider: UBL
Interest rate/AER: 3.10 %
Withdrawal penalty: 365 days interest( on full transfer or closure)
Flexible?: No
Transfer in allowed?: Yes(but only from another cash ISA)
Min Initial Deposit: £ 2,000.00
When is interest paid?: On maturity
Shawbrook Bank 5 year fixed rate ISA bond
Shawbrook’s 5 year fixed rate Cash ISA offers an excellent interest rate of 2.95 %, but does have the draconian withdrawal penalty of a full 360 day’s interest on the withdrawal amount. This account can be opened and managed online.
Provider: Shawbrook Bank
Interest rate/AER: 2.95 %
Withdrawal penalty: 360 days interest
Flexible?: No
Transfer in allowed?: Yes
Min Initial Deposit: £ 1,000.00
When is interest paid?: Monthly or Annually
7 Year fixed rate
Shawbrook Bank 7 year fixed rate Cash ISA bond
Shawbrook offers a rate of 2.97 % for their 7 year fixed rate offering, with an initial deposit of £ 1,000.00 (this can be via a transfer from another ISA account). Withdrawals are allowed, but at a huge penalty of 360 days loss of interest.
This account can only be opened online. It can be managed online and by telephone
Provider: Shawbrook Bank
Interest rate/AER: 2.97 %
Withdrawal penalty: 360 days
Flexible?: No
Transfer in allowed?: Yes
Min Initial Deposit: £ 1,000.00
When is interest paid?: Annually