Fixed Rate Cash ISA

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 2020.

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 with a range of terms available
  • 18 months pays an interest rate of 1.58% Tax-free Monthly/1.60% AER (fixed)
  • 2 years pays an interest rate of 1.70% Tax-free/AER (fixed)
  • 3 years pays an interest rate of 1.85% Tax-free/AER (fixed)
  • All deposits, including transfers must be received within 30 days of opening your account
  • 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)
  • 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 0.30% tax free/AER

How to Apply

18 Month Fixed Rate Cash ISA
 

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2 Year Fixed Rate Cash ISA
 

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3 Year Fixed Rate Cash ISA
 

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Summary box

Account name

Fixed Rate Cash ISA

What is the interest rate?
Term Interest rate
18 Month 1.58% Tax Free Monthly / 1.60%  AER (fixed)
2 Year 1.70% Tax Free/AER (fixed)
3 Year 1.85% 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). 
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 the fixed term 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
Fixed Rate Cash ISA - 18 Months Interest earned at 1.58% Tax Free Monthly / 1.60%  AER (fixed) £72.18
Estimated balance after 18 months £3,072.18
Fixed Rate Cash ISA - 2 Years Interest earned at 1.70% Tax Free / AER (fixed) £102.87
Estimated balance after 2 Years  £3,102.87
Fixed Rate Cash ISA - 3 Years Interest earned at 1.85% Tax Free / AER (fixed) £169.60
Estimated balance after 3 Years  £3,169.60
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 2019/2020), plus transfers in from other existing ISA's.
  • All deposits, including transfers, must be received within 30 days of opening your account.
  • If you want to add further deposits, you can open a new Fixed Rate Cash ISA assuming you have not yet used your full yearly ISA allowance.
Manage your account
  • In branch
  • Over the phone
  • Online
  • Mobile app
Can I withdraw money? 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 withdraw
  • 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.
Additional information  
  • Accounts can only be opened in a sole name.
  • You can only pay into a cash ISA with one provider in each tax year.
  • 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'll still be able to open another cash ISA account in the same tax year with us or another provider.
  • You can also close your account after 14 days subject to the charge above, but you won't be able to open or subscribe to a cash ISA with a different provider until the next tax year.
Rates and information correct as at 25/03/2019.
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 £85,000 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 £85,000. 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 £85,000 each (making a total of £170,000). The £85,000 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 £85,000 limit relates to the combined amount in all accounts with TSB Bank plc.

Financial Services Compensation Scheme

FSCS
 
Visit fscs.org.uk to find out more
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