Fixed rate Cash ISAs remain one of the most straightforward ways to earn tax-free interest on your savings in the UK. With rates currently hovering between 4.10% and 4.65% AER depending on the term and provider, choosing the right account requires a clear look at the numbers, the rules, and the latest expert picks.
The annual ISA allowance for the 2025/2026 tax year is £20,000, and most fixed rate accounts are protected by the Financial Services Compensation Scheme up to £85,000. However, rates change frequently – often without notice – and early withdrawal penalties can eat into your returns. This guide brings together current top rates, Martin Lewis’s latest recommendations, and the key facts you need before locking in your money.
What are the best fixed rate ISAs right now?
Fixed rate ISAs lock in a guaranteed interest rate for a set term, typically 1, 2, 3 or 5 years. Currently, Nationwide offers the highest headline rates among major providers: 4.50% for 1 year, 4.55% for 2 years, and 4.60% for 3 and 5 years. Smaller building societies and challenger banks such as OakNorth and Secure Trust Bank also appear near the top of comparison tables, often with minimum deposits as low as £1.
- Fixed rate ISAs guarantee the interest rate for the full term – you know exactly what you’ll earn.
- Nationwide currently leads among big banks with rates of 4.50% (1yr) to 4.60% (3/5yr).
- Martin Lewis (MoneySavingExpert) often recommends Nationwide but also highlights smaller building societies that may offer better rates.
- No withdrawals are allowed during the term without a penalty – typically loss of some or all interest.
- The best rates change frequently; MoneyfactsCompare updates its tables hourly.
- For over-60s, there are no special fixed rate ISA products, but some providers offer slightly higher rates on fixed rate bonds for older savers.
| Provider | Term | Rate (AER) | Min Deposit | Access |
|---|---|---|---|---|
| Nationwide | 1 year | 4.50% | £1 | Fixed – no withdrawals |
| Nationwide | 2 years | 4.55% | £1 | Fixed – no withdrawals |
| Secure Trust Bank | 2 years | 4.56% | £1,000 | Internet (to Jun 2028) |
| OakNorth | 2 years | 4.55% | £1 | Fixed – early withdrawal charge |
| Nationwide | 3 years | 4.60% | £1 | Fixed – no withdrawals |
| Tandem Bank | 3 years | 4.53% | £0 | Mobile app – monthly interest |
| Santander | 1 year | ~4.00% (check current) | £1,000 | Fixed – early withdrawal penalty |
| NatWest | 1 year | ~3.75% (check current) | £1 | Fixed – no withdrawals |
| Virgin Money | 1 year | ~4.00% (check current) | £1 | Fixed – early withdrawal penalty |
Rates are indicative as of April 2026 and subject to change. Always verify on the provider’s website before applying.
What are Martin Lewis’ recommended ISAs for 1 year, 2 years, and over-60s?
Martin Lewis and his team at MoneySavingExpert regularly update their “best buy” tables for cash ISAs. Their picks reflect not only the highest rates but also the reliability and fairness of the provider. As of the latest update, Nationwide is highlighted as the best of the big names, paying 4.50% for one year, 4.55% for two years, and 4.60% for three and five years.
Martin Lewis’ best 1 year fixed rate ISAs
For a 1-year fixed rate ISA, Martin Lewis currently recommends Nationwide at 4.50%. He also points to Shawbrook Bank at 4.30% and occasionally smaller societies such as OakNorth if they top the charts at the time of checking.
Martin Lewis’ best 2 year fixed rate ISAs
On 2-year fixed rates, Nationwide’s 4.55% is again a top pick. Lewis notes that Secure Trust Bank (4.56%) and RCI Bank UK (4.55%) often appear in the comparison tables, but he advises checking the provider’s FSCS protection and early exit penalties before committing.
“For a fixed rate cash ISA, Nationwide is currently the best of the big names, paying 4.5% for one year, 4.55% for two years, and 4.6% for three and five years.” – Martin Lewis, MoneySavingExpert.com
Best ISA rates for over-60s according to Martin Lewis
There are no dedicated fixed rate ISA products specifically for over-60s. However, some providers offer fixed rate bonds with slightly higher rates for older savers. Martin Lewis advises checking the latest tables on MoneySavingExpert as these niche products change frequently. For most, the standard fixed rate ISA market already offers competitive options without age restrictions.
What rates are Nationwide, Santander, NatWest, and Virgin currently offering?
Below is a snapshot of current fixed rate ISA rates from the UK’s major high street banks. These are indicative as of April 2026 and may have changed. Always confirm directly with the provider before applying.
Nationwide fixed rate ISA
Nationwide offers a range of fixed rate Cash ISAs: 1 year at 4.50%, 2 years at 4.55%, 3 years at 4.60%, and 5 years at 4.60% AER. The minimum deposit is £1 and interest is paid annually or at the end of the term. Access is fixed – no withdrawals are permitted during the term.
Santander fixed rate ISA
Santander’s 1-year fixed rate ISA is currently around 4.00% AER (check current rates). It requires a minimum deposit of £1,000 and early withdrawals incur a penalty. Rates are typically slightly below the top market leaders.
Providers amend their fixed ISA rates on a daily basis. The figures shown here are a snapshot from April 2026. For the most up-to-date rates, always check the provider’s website or a comparison site such as MoneySuperMarket or MoneyfactsCompare.
NatWest fixed rate ISA
NatWest’s 1-year fixed rate ISA is currently around 3.75% AER (check current rates). The minimum deposit is £1 and no withdrawals are permitted during the term. NatWest has not been among the top payers in recent months, but its rates should be verified directly.
Virgin Money fixed rate ISA
Virgin Money offers a 1-year fixed rate ISA at approximately 4.00% AER (check current rates). The minimum deposit is £1 and early withdrawals are subject to a penalty. Virgin also offers easy access and flexible ISAs, which may be compared for those who prioritise access over rate.
How does a fixed rate ISA work, and what are the key rules?
Fixed rate ISAs are straightforward: you agree to deposit a sum of money for a set period (usually 1 to 5 years) and in return the provider guarantees a fixed interest rate. Interest is paid tax-free within the annual ISA allowance of £20,000.
Fixed rate ISA vs easy access ISA
The main difference is access. With an easy access ISA you can withdraw money at any time without penalty, but the interest rate is variable and often lower. A fixed rate ISA locks your money away for the term – you generally cannot access it without losing some or all of the interest earned. This trade-off usually delivers a higher guaranteed rate.
Can I withdraw money early?
Early withdrawals are typically not allowed, or come with a charge. Most providers impose a penalty equivalent to a number of days’ or months’ interest. Some accounts may allow closure with loss of all interest. Always read the terms and conditions before applying.
Many fixed rate ISAs impose a penalty if you need to access your money before the term ends. This penalty can be as high as 90 days’ interest or more. Only commit funds that you are certain you will not need during the fixed period.
Are fixed rate ISAs taxable?
No, all interest earned within an ISA is tax-free. There is no additional tax to pay on the returns, regardless of your income tax band. The annual ISA allowance for the 2025/2026 tax year is £20,000 per person.
Minimum deposit
Minimum deposits vary widely. Some providers, such as Nationwide and OakNorth, accept as little as £1. Others, like Santander and Secure Trust Bank, require £1,000 or more. Always check the minimum deposit before applying.
How often are fixed rate ISA rates updated?
Rates can change at any time without prior notice. Comparison sites such as MoneyfactsCompare update their tables hourly. Providers themselves may adjust rates multiple times per week depending on market conditions and funding needs. The best approach is to check the latest rates immediately before applying and to note that the rate is only guaranteed once the account is opened.
What do we know for sure about fixed rate ISAs – and what remains uncertain?
| Established information | Information that remains unclear |
|---|---|
| Fixed rate ISAs guarantee the interest rate for the chosen term. | Rates can change without notice even after you start an application; only finalised upon account opening. |
| You cannot access your money during the term without penalty (with few exceptions). | Martin Lewis’ specific picks may change weekly as he updates his site. |
| The maximum annual ISA allowance is £20,000 (2025/26 tax year). | Whether a fixed rate ISA is better than an easy access depends on future interest rate movements (unknown). |
| Interest earned is tax-free. | Over-60s specific products may not always be available; check individual provider terms. |
| Top rates are updated frequently – use MoneyfactsCompare or MoneySavingExpert for current view. | – |
How should I choose the right fixed rate ISA?
Choosing the right fixed rate ISA depends on your personal financial situation and your outlook for interest rates. If you believe rates will fall over the next year or two, locking in a rate now can protect your returns. If you think rates will rise, you might prefer a shorter term or an easy access account.
When comparing accounts, look beyond the headline rate. Check the minimum deposit, early withdrawal penalties, and whether the provider allows additional deposits during the term. Martin Lewis recommends only considering accounts from providers that are FSCS protected up to £85,000. Smaller building societies often top the charts but may have limited online access – make sure you are comfortable with the application and account management process.
For money you may need before the term ends, stick to an easy access ISA instead. A fixed rate ISA is best suited for savings you are confident you won’t need for the duration of the term.
What the experts say – quotes and sources
“For a fixed rate cash ISA, Nationwide is currently the best of the big names, paying 4.5% for one year, 4.55% for two years, and 4.6% for three and five years.”
– Martin Lewis, MoneySavingExpert.com
“ISAs are tax-free savings accounts. The annual ISA allowance for 2025/26 is £20,000.”
– HMRC, GOV.UK
For regularly updated best buy tables, consult MoneySavingExpert and MoneyfactsCompare. Provider pages such as Nationwide’s fixed rate ISA also give the most authoritative current rates.
What are the next steps for applying for a fixed rate ISA?
Once you have decided on a term and a provider, the application process is usually straightforward. Most banks and building societies allow you to open a fixed rate ISA fully online. You will need your National Insurance number, a debit card or bank details for the transfer, and to confirm that you are a UK resident aged 18 or over. After the account is opened, you must transfer your ISA allowance (up to £20,000) within a set time window – often within 30 days. For more general guidance on managing your money, you may find the Best Pet Insurance UK – Which? Top Picks 2026 article useful, along with the Cash Point Near Me – Free ATMs, 24/7 Access and Deposits Guide for everyday banking needs.
Frequently asked questions about fixed rate ISAs
Are fixed rate ISAs taxable?
No, interest earned from an ISA is tax-free. The government sets an annual allowance of £20,000 (2025/26).
Can I withdraw money from a fixed rate ISA before the term ends?
Usually early withdrawals are not allowed or incur a penalty, such as loss of interest or a variable charge. Check the provider’s T&Cs.
What is the minimum deposit for a fixed rate ISA?
It varies. Some providers (e.g., Nationwide) accept £1; others require £500 or £1,000.
How often are fixed rate ISA rates updated?
Rates can change at any time without notice. Comparison sites like MoneyfactsCompare update hourly. Always check before applying.
Is a fixed rate ISA better than a regular fixed rate savings account?
If you haven’t used your ISA allowance, an ISA is tax-free. For basic-rate taxpayers, the personal savings allowance may cover interest, making a savings account equivalent. For higher-rate taxpayers, ISAs are more beneficial.
What happens if I need to close the account early?
Most providers will charge a penalty – typically losing a number of days’ or months’ interest. Some may refuse closure until the maturity date.
Can I transfer an existing ISA into a fixed rate ISA?
Yes, you can transfer your current year’s ISA (up to £20,000) as well as previous years’ ISA savings into a new fixed rate ISA, provided you follow the formal transfer process. Do not withdraw the money yourself.
Are fixed rate ISAs covered by the FSCS?
Yes, most fixed rate Cash ISAs are FSCS-protected up to £85,000 per person, per provider. Always confirm the provider’s FSCS status.
What term length should I choose?
Choose a term that matches when you expect to need the money. If you are unsure, a 1-year term offers flexibility. Longer terms may offer higher rates but lock you in for longer.
Do fixed rate ISAs allow additional deposits during the term?
Some providers allow additional deposits, but many do not. Check the terms – if you plan to add more money during the term, look for a flexible or easy access ISA instead.
Sophie Larkin is Music News Editor at PlaylisterUK.co.uk, covering artist announcements, releases, charts, labels, streaming platforms and the UK music industry.