Fixed-rate ISAs compared
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Important: This guide provides general information, not personalised financial advice. Financial products, rates and eligibility rules can change, so check the provider’s current terms before applying. Some links are referral links — we may earn a commission. You can check a firm’s details on the FCA Register.
FSCS protects eligible deposits up to £120,000 per person, per authorised institution.
Quick answer
A fixed-rate cash ISA pays a guaranteed, tax-free rate for a set term — commonly one to five years. In return, you usually can’t take money out early without a penalty, and some don’t allow access at all until the term ends.
Longer terms don’t always pay more. In the rates we checked on 3 October 2026, some two- and five-year terms paid more than three-year terms, so compare each term on its own.
Fixed-rate ISA rates by term
AER rates checked on each provider’s own website on 3 October 2026. “Not listed” means the provider didn’t show that term on the day.
| Term | Zopa Fixed Term ISA pot | Shawbrook Fixed Rate Cash ISA |
|---|---|---|
| 1 year | 4.87% | 4.94% |
| 2 years | 4.11% | 5.06% |
| 3 years | 3.90% | 3.80% |
| 4 years | 3.80% | Not listed |
| 5 years | 3.80% | 5.25% |
| 7 years | Not listed | 4.14% |
Rates as of 3 October 2026, taken from each provider’s own website. Variable rates can change at any time and fixed rates can be withdrawn, so check the provider before you apply.
Who it’s for
- Savers who won’t need the money for the whole term
- People who want certainty about what they’ll earn
- Anyone using some of their ISA allowance for money set aside for a known future date
Who should skip it
These are general points to weigh up, not advice. You may want to look elsewhere if:
- You might need the money before the term ends — consider an easy-access ISA
- You expect to want to move to a higher rate if rates rise
- You haven’t built an emergency fund yet
Full explanation
Fixed-rate ISAs suit money you’re confident you won’t need. The rate is set when you open the account (or when the deposit window closes), and it doesn’t change for the term. The ISA allowance for the 2026/27 tax year is £20,000 (GOV.UK, checked 4 October 2026).
Before you apply, check three things: how long you have to pay money in, whether you can add more later, and what happens if you need the money early. Zopa, for example, says you need to deposit within the first 30 days of opening a fixed-term ISA pot and charges a penalty for early withdrawal.
You can usually transfer an existing ISA into a fixed-rate ISA. Moving money out of a fixed ISA before it matures normally triggers the same penalty as a withdrawal. See how to transfer an ISA.
Never withdraw cash yourself when transferring an ISA — always use your new provider’s official ISA transfer service to preserve your tax-free status.
If you’re torn between access and a higher rate, you don’t have to choose one. Some savers split their allowance between an easy-access ISA and a fixed one. Our easy-access or fixed-rate guide walks through the trade-off.
Eligible deposits are protected by the FSCS up to £120,000 per person, per authorised bank or building society. The government has announced that from 6 April 2027, people under 65 will be able to put up to £12,000 a year into cash ISAs within the £20,000 overall allowance.
The catch
Early access usually costs you a penalty, often expressed as a number of days’ interest, and that can eat into your capital if you withdraw soon after opening. Many fixed ISAs only accept deposits for a short window after opening. And when the term ends, the money may move into a lower-paying account unless you act.
Check the current fixed rates and deposit window on the provider’s site.
Some links in this section are referral links. We may earn a commission if you use them, at no extra cost to you.
Some links in this table are referral links. We may earn a commission if you use them, at no extra cost to you. Rankings are based on our review methodology, not commission.
FAQs
Can I withdraw from a fixed-rate ISA early?
Some providers allow it with a penalty, often a set number of days’ interest; others don’t allow access until the term ends. Check the terms before you open.
Does a longer fixed term always pay more?
No. In the rates we checked on 3 October 2026, some shorter terms paid more than longer ones, so compare each term separately.
Can I add money to a fixed-rate ISA later?
Often only during an initial deposit window. After that, new money usually needs to go into a different ISA.
What happens when my fixed ISA ends?
The provider normally contacts you before maturity. If you don’t choose a new option, the money may move to a lower-paying variable account.
Can I transfer a fixed-rate ISA to another provider?
Yes, but doing so before the term ends usually means paying the early-access penalty.
How much can I pay into a fixed-rate ISA?
The ISA allowance for the 2026/27 tax year is £20,000. Some providers also set their own minimum and maximum deposits.
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