ISAs are some of the best savings vehicles you can use in the UK as they allow for up to £20,000 of tax-free savings a year.
With the Bank of England expected to slash interest rates again this year, it could be a good idea to secure favourable rates now by locking your savings away into a fixed rate ISA.
However, make sure that you’re getting a good deal on your interest rate and that it is above inflation; otherwise, you’ll be losing money in real terms.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
If you're seeking the best cash ISA with a fixed rate, we list the top options currently on the market.
Best 1 year fixed rate cash ISAs
If you’re willing to lock away your money for one year without withdrawing any of it, you could grow your savings by up to 4.53%.
Account | AER | Minimum investment | Notes |
|---|---|---|---|
UBL UK 1 Year Fixed Rate Cash ISA | 4.53% | £2,000 | Open online |
Vanquis Bank 1 Year Fixed Rate Cash ISA | 4.42% | £1,000 | Open online |
United Trust Bank Cash ISA 1 Year Bond | 4.41% | £5,000 | Open online |
Castle Trust Bank Fixed Rate e-Cash ISA | 4.4% | £1,000 | Open online |
Best cash ISAs up to 18 months
If you are after an account that keeps your money growing for up to 18 months, then you can earn up to 4.26% using one of the following savers.
However, if you are willing to lock your money away for an extra six months, then you could potentially gain access to a higher interest rate of 4.46% by using a two-year fixed rate ISA.
Account | AER | Minimum investment | Notes |
|---|---|---|---|
Charter Savings Bank 18 Month Fixed Rate Cash ISA | 4.26% | £5,000 | Open online |
Dudley BS 18 Month Fixed Rate ISA | 4.20% | £100 | Open in person or by post |
Newcastle BS 18 Month Fixed Rate ISA | 4.05% | £1 | Open online or in person |
Santander 18 Month Fixed Rate ISA | 4.05% | £500 | Open online or in person |
Best 2 year cash ISAs
Two-year fixed rate ISAs are a good option for people who want to grow their money in the medium term without worrying about micro-managing their savings.
Right now, you can use a two-year fixed rate account to grow your money by up to 4.46%.
Account | AER | Minimum investment | Notes |
|---|---|---|---|
Chetwood Bank HL Active Savings - 2 Year Fixed Rate Cash ISA | 4.46% | £1,000 | Open online |
Furness BS 2 Year Fixed Rate ISA | 4.45% | £1,000 | Open online, in person or by post |
United Trust Bank Cash ISA 2 Year Bond | 4.38% | £5,000 | Open online |
Kent Reliance Two Year Fixed Rate Cash ISA | 4.37% | £1,000 | Open online or in person |
Best 3 year fixed rate ISAs
Savers who are willing to lock their cash away for three years can access interest rates of up to 4.34% by using one of the following savings accounts.
Account | AER | Minimum investment | Notes |
|---|---|---|---|
UBL UK 3 Year Fixed Rate Cash ISA | 4.34% | £2,000 | Open online or in person |
Chetwood Bank HL Active Savings - 3 Year Fixed Rate Cash ISA | 4.30% | £1,000 | Open online |
Darlington BS 3 Year Fixed Rate Cash ISA | 4.30% | £10,000 | Open online, in person or by post |
Nottingham BS 3 Year Fixed Rate Cash ISA | 4.25% | £500 | Open in person |
Best 4 year fixed rate ISAs
If you’re putting away your money for four years, then you can get up to 4.2% returns using one of the following accounts.
However, it is worth bearing in mind that if you are willing to keep your money in savings for an extra year, then you can gain access to a higher interest rate of 4.31%.
Account | AER | Minimum investment | Notes |
|---|---|---|---|
United Trust Bank Cash ISA 4 Year Bond | 4.20% | £5,000 | Open online |
UBL UK 4 Year Fixed Rate Cash ISA | 4.05% | £2,000 | Open online or in person |
Zopa Smart ISA - 4 Year Fixed Term ISA pot | 4.01% | £1 | Open via the Zopa App |
Gatehouse Bank 4 Year Fixed Term Woodland Cash ISA | 3.7% | £1,000 | Open online |
Best 5 year fixed rate ISAs
A five year fixed rate ISA is a good option for long-term savers who are trying to save towards a financial goal in the future.
The following accounts allow for up to 4.31% returns on your savings.
Account | AER | Minimum investment | Notes |
|---|---|---|---|
Castle Trust Bank Fixed Rate e-Cash ISA | 4.31% | £1,000 | Open online |
Chetwood Bank HL Active Savings - 5 Year Fixed Rate Cash ISA | 4.30% | £1,000 | Open online |
Leek Building Society 5 Year Fixed Rate Cash ISA | 4.30% | £1,000 | Open online, in person or by post |
Nottingham BS 5 Year Fixed Rate Cash ISA | 4.30% | £500 | Open in person |
-
Could investing in sugar protect you during a downturn?Sugar has some defensive qualities during economic downturns, but is now the right time to invest in sugar?
-
Trump’s tariffs: how should the UK respond?Every right-thinking person knows that free trade is a surer route to the wealth of nations than protectionism. So, what is Trump thinking?
