Our Fixed Rate Cash ISA allows you to save up to £20,000 and earn tax-free interest in this tax year ending 5 April 2025, plus transfers in from other existing ISAs.
Fixed interest rates
- 18 months pays an interest rate of 3.88% Tax Free/ 3.95% AER (fixed)
- 2 years pays an interest rate of 3.85% Tax-free/AER (fixed)
- 3 years pays an interest rate of 3.75% Tax-free/AER (fixed)
Summary box
| Term | Interest rate |
|---|---|
| 18 Month | 3.88% Tax Free/ 3.95% AER (fixed) |
| 2 Year | 3.85% Tax Free / AER (fixed) |
| 3 Year | 3.75% Tax Free / AER (fixed) |
Interest is calculated each day. Interest is paid yearly on the anniversary of opening your account and at maturity for terms of whole years (e.g. 2 or 3 years) and paid monthly and at maturity for part year terms (e.g. 18 months).
No, we can't change the interest rate during the fixed term of your Fixed Rate Cash ISA.
Based on a £3,000 deposit, with no deposits or withdrawals made from the account, and variable interest rates remaining the same:
Initial deposit: £3,000
| Fixed Rate Cash ISA - 18 Months | Interest earned at 3.88% Tax Free/ 3.95% AER (fixed) | £179.58 |
| Estimated balance after 18 months | £3,179.58 | |
| Fixed Rate Cash ISA - 2 Years | Interest earned at 3.85% Tax Free / AER (fixed) | £235.45 |
| Estimated balance after 2 Years | £3,235.45 | |
| Fixed Rate Cash ISA - 3 Years | Interest earned at 3.75% Tax Free / AER (fixed) | £350.31 |
| Estimated balance after 3 Years | £3,350.31 |
This is an example only and doesn't take into account your individual circumstances.
Ways to open |
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| Who can open | You must be:
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Open with |
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| Manage your account |
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Withdrawals allowed: Yes
Notice Period: None
Withdrawal charges: Yes
| Term | Withdrawal charge |
|---|---|
| 18 Months | Equivalent to 135 days’ interest on the amount taken out or transferred |
| 2 Years | Equivalent to 180 days’ interest on the amount taken out or transferred |
| 3 Years | Equivalent to 270 days’ interest on the amount taken out or transferred |
For example: if you had an account with a 2 year term and took out £2,000, the charge would be the amount of interest you’d earn on the £2,000 for 180 days.
How to Withdrawl:
- Cash
- Bankers draft
- Transfer to TSB current or savings account
(Service charges may apply, see our Banking Charges guide for more information)
You can withdraw and replace money from your Fixed Rate Cash ISA without it counting towards your yearly ISA allowance for that year, as long as the repayment is made in the same tax year as the withdrawal, and paid into a new Fixed Rate Cash ISA or Cash ISA Saver.
- Accounts can only be opened in a sole name.
- Opening a Fixed Rate Cash ISA will limit the amount that can be invested in a stocks and shares or innovative finance ISA. To find out more about this, speak to a Partner in your local branch or call us.
- The tax advantages depend on your individual circumstances and the tax treatment of your ISA may change in the future.
- Your account will mature into a Cash ISA Saver (off bonus) at the end of the term. We'll contact you before this happens with your options.
- If you aren't happy with your Fixed Rate Cash ISA, you can cancel within 14 days without charge.
- You can also close your account after 14 days subject to the charge above.
Rates and information correct as at 20/12/2024.
AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.
Tax free rate is the contractual rate of interest payable where interest is exempt from income tax.
Important information
How to apply for a fixed rate cash ISA
Already registered for Internet Banking?
- Log in and apply
Not yet registered for Internet Banking?
- Apply online
Any questions?
We’ll let you know a few months before your ISA fixed term is coming to an end.
- On maturity your Fixed Rate ISA will mature into a Cash ISA Saver without bonus.
- We will notify you when your ISA fixed term is coming to an end, so you're always in control.
- Manage your Savings account online with our mobile app and Internet Banking
Find out more information on your savings account maturity options here
Important Information
The Annual Equivalent Rate (AER) shows what the interest would be if the interest was paid and added to the account once each year. It lets you compare savings accounts easily. Gross rate means that credit interest is paid without income tax being deducted. Tax-free is the contractual rate of interest payable where interest is exempt from income tax.
Tax-free means the interest paid will be free from UK Income Tax. The tax advantages depend on your individual circumstances and the tax treatment of your ISA may change in the future.
You need to be 16+ and UK resident to open most of our savings accounts with the exception of Savings Pots and TSB ISAs. For children under 16 please see specific pages for opening procedures.
