Easy to set up and operate, ISAs are indeed a great way to save your hard-earned money without subjecting it to taxes.
Fixed-rate ISAs are a popular choice due to their relatively higher interest rates than the variable-rate options. If you’re trying to figure out the best fixed-rate ISAs in the UK, you have landed on the right page. Let’s explore the best options for a hassle-free experience while maximising your profits.
Top 6 fixed rate ISAs in the UK
In the UK, you have several fixed-rate ISAs with an interest rate of over 4% to choose from. The best ISAs with fixed rates include:
Newcastle Two Year Fixed Rate ISA (Issue 87)
Offered by Newcastle Building Society, this profitable ISA boasts a high fixed rate of interest – 4.4% per annum. This, together with the fact that there’s no upper limit on how much you can save in this ISA, makes it one of your most profitable choices. Do note that the savings term is fixed at two years – withdrawing your money early may incur a penalty.
- A low minimum balance of £500.
- No upper limit on savings.
- Accessible both online and at a physical branch, as well as by phone and post.
Paragon fixed-rate ISAs (multiple term durations)
With three different high-interest ISAs of different term durations, Paragon takes second place. You may choose between 12-month, 18-month, and 24-month options, which gives you plenty of flexibility. The interest offered by Paragon is the same as that of the Newcastle ISA – 4.4% per year. The minimum deposit is still £500, but the upper limit is capped at £500,000.
- You may open and manage an account at Paragon online or by post.
- At £500,000, the upper limit is quite high.
- You get to choose between 3 different term durations.
Close Brothers Savings 2 Years Fixed Rate ISA
Yet another fixed-rate ISA offering 4.4% interest per annum, this one from Close Brothers Savings is a profitable choice. Close Brothers also offers a 1-year fixed rate ISA, at a slightly lower rate of 4.32%.
However, note that this ISA comes with a hefty minimum deposit of £10,000, which might make it too expensive for many individuals. On the bright side, the £2,000,000 is quite high too. While Close Brothers might not be a viable option for many, it’s still a great choice for those seeking to save large sums.
- A high upper limit of £2,000,000.
- An account may be opened online or over the phone.
Virgin Money 3 Year Fixed Rate Cash E-ISA Issue 580
For younger people trying to save for a relatively long term, this ISA should be perfect. While most ISAs require you to be at least 18 years in order to open an account, Virgin Money has set the minimum age limit at 16 years. At only £1, the minimum deposit is next to nothing – another reason why this ISA is a convenient choice for young individuals and others with a small sum of money to deposit.
At 4.41% per annum, this ISA offers the highest interest rate. Virgin Money also offers 2-year and 1-year ISA options at slightly lower rates of 4.4% and 4.33% per annum respectively.
- An almost non-existent minimum lower balance
- A relatively low minimum age limit of 16 years
Shawbrook Bank 2 Year Fixed Rate Cash ISA Bond Issue 71
This ISA from Shawbrook Bank is another viable option for those planning to deposit a relatively small amount while maximising the returns. With minimum and maximum balance limits of £1,000 and £250,000 respectively, this fixed-rate ISA should be suitable for most depositors.
The yearly interest rate is set at 4.4%, which puts this ISA among the most profitable ones out there. However, if you plan to deposit a sum exceeding the £250,000 upper limit, one of the other ISAs in this list would be better suited to your needs.
- A high-interest rate of 4.4% per annum.
- A relatively low minimum balance of £1,000.
Kent Reliance 2 Year Fixed Rate Cash ISA – Issue 71
Like Virgin Money, Kent Reliance is a great choice for young individuals aged above 16 years too. Though the £1,000 lower balance limit is comparatively higher, it’s still quite reasonable. The upper limit is set at £1,000,000, which should be enough for most depositors.
Overall, this is a well-rounded option that caters well to individuals with varying sums to save up. At 4.36% per annum, the fixed interest rate is quite good too.
Several other ISAs with similar or slightly lower interest rates are available in the UK too, but these six are easily your best choices. Regardless of how much money you plan to deposit, you should be able to find a suitable ISA from the above list.
- The lower limit for your account balance is £1,000
- Individuals aged 16 years and above are eligible to open an account.
Frequently asked questions
What is the highest interest you can get from a fixed-rate ISA?
The highest fixed-rate ISA interest rate is 4.41%per annum, offered by Virgin Money’s 3-year ISA. However, several other ISAs are close behind with a 4.4% per annum interest rate.
How old do you have to be to open an ISA account?
Most ISAs have a lower age limit of 18 years, but some also allow individuals older than 16 years to open ISA accounts.
How many ISAs can I have?
You may have as many ISAs as you wish, but you’re only allowed to pay into one type of ISA, i.e., a maximum of four ISAsper tax year.