2 Year Fixed Rate Cash ISA

Our 2 Year Fixed Rate Cash ISA allows you to save up to £20,000 and earn tax-free interest in this tax year ending 5 April 2018.

Tax-free means the interest paid will be free from UK Income Tax. The advantages of which depend on your individual circumstances and the tax treatment of your ISA may change in the future.

Benefits

  • Fixed interest rate
  • We allow you to pay in further deposits throughout the 2 year term, subject to the ISA limit for each year
  • Interest is calculated on a daily basis and paid on the anniversary of the account opening and upon account maturity
  • Notification of when your ISA fixed term is coming to an end, so you're always in control
  • On maturity, your Fixed Rate ISA will mature into a Cash ISA Saver without bonus, which currently pays a variable interest rate of 0.05% tax free/AER

Summary box

Account name 2 Year Fixed Rate Cash ISA
What is the interest rate? Interest rate 0.60% AER/Tax Free (fixed)
You'll earn interest on balances of £1 or more. Interest is calculated each day and paid once a year on the anniversary of opening the account and at maturity. 
Can TSB change the interest rate? No, we can't change the interest rate during the fixed term of your Fixed Rate Cash ISA.
What would the estimated balance be after 24 months based on a £3,000 deposit? 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
Interest earned at 0.60% AER/Tax Free (fixed) £36.11
Estimated balance after 24 months £3,036.11
This is an example only and doesn't take into account your individual circumstances.
How do I open and manage my account? Ways to open
  • In branch
  • Online 
Who can open
You must be:
  • 16 or over; and
  • A UK resident
Open with
  • £3,000 minimum opening balance
  • Maximum subject to the annual ISA allowance (£20,000 for 2017/2018), plus transfers in from other existing ISA's.
Manage your account
  • In branch
  • Over the phone
  • Online
  • Mobile app
Can I withdraw money? Withdrawals allowed Yes
Notice period None
Withdrawal charges Yes - a change equivalent to 180 days interest on the amount taken out.
How to withdraw
  • Cash
  • Bankers draft
  • Funds transfer
(Service charges may apply, see our Banking Charges guide for more information)
You can withdraw and replace money from your cash ISA without it counting towards your annual ISA allowance for that year, as long as the repayment is made in the same tax year as the withdrawal.
Additional information  
  • Accounts can only be opened in a sole name and you can only pay into one cash ISA in each tax year
  • Opening a 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 our staff 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.
 
Rates and information correct as at 04/05/17.
 
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.

More information

Your eligible deposits with TSB are protected up to a total of £75,000 by the Financial Services Compensation Scheme, the UK's deposit protection scheme.

Your deposits with us are covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a bank is unable to meet its financial obligations. Most depositors - including most individuals and small businesses - are covered by the scheme.

In respect of deposits, an eligible depositor is entitled to claim up to £75,000. For joint accounts each account holder is treated as having a claim in respect of their share so, for a joint account held by two eligible depositors, the maximum amount that could be claimed would be £75,000 each (making a total of £150,000). The £75,000 limit relates to the combined amount in all the eligible depositor's accounts with the bank including their share of any joint account, and not to each separate account.

For further information about the compensation provided by the FSCS (including the amounts covered and eligibility to claim) please ask at your local branch, refer to the  FSCS website or call the FSCS on 020 77 414 100  or 08006 781 100 . Please note only compensation related queries should be directed to the FSCS.

Accounts with TSB Bank plc include accounts in all its divisions and under trading name TSB and TSB Business. An eligible depositor's £75,000 limit relates to the combined amount in all accounts with TSB Bank plc.

Please read the guide to protecting your money for further information.

ISA guide

Everything you need to know about ISAs and how to make the most of your annual ISA allowance.

Read our ISA Guide

We're making some changes to our terms and conditions

There are some changes coming to the way you bank with us. As part of this, we’re making our terms and conditions even clearer, which is good news for everyone.

Find out more

Read summary of changes PDF (720KB)


You can find the updated terms and conditions here

2 Year Fixed Rate ISA

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