Fixed Rate Cash ISA

If you don't need to access your money and are looking to guarantee your rate, think about a Fixed Rate Cash ISA. The Tesco Bank Fixed Rate Cash ISA gives you a guaranteed interest rate for one year - but you can't withdraw any money during the fixed term unless you close your account and withdraw all of the money in the account.

If you close your account or transfer your money out of it during the fixed term, we will charge you a fee equal to 30 days' interest on the balance of your account.

The current rules for ISAs are subject to change by HM Revenue & Customs and the value of tax benefits depends on individual circumstances.

Key features

  • Guaranteed interest rate - Fixed for the term of your ISA as long as your money is kept in the ISA for the fixed term.
  • Annual interest - Added to your ISA account on the anniversary of the account opening.
  • Open your ISA online or by phone - Once it's set up, you can make unlimited deposits within the next 30 days up to the maximum allowance of £5,940.
  • Keep all your tax-free savings in one place - Transfer your existing Cash ISA within 30 days of opening your Tesco Bank Fixed Rate Cash ISA. Existing provider restrictions and fees may apply.

Is a Fixed Rate ISA right for you?

Before you go ahead, make sure that:

  • You are happy to lock your money away for the fixed term
  • You understand that if you need access to your money you'll need to close your account and pay a fee equivalent to 30 days' interest on the balance of your account
  • You understand that you won't be able to put any more money into the Cash ISA after the first 30 days

Interest rates

1 Year Fixed Rate Cash ISA Interest RatesGross/AER
Interest Rate (Annual) 1.65%

Interest is added to your ISA account on the anniversary of the account opening.

Annual Equivalent Rate (AER) illustrates what the interest rate would be if it was paid and compounded each year.

If you transfer out of, or close, a Fixed Rate ISA after the first 30 days and before the end of the term, a fee equivalent to 30 days' interest on the balance of your account will be charged.

When your Fixed Rate period ends, the account will become an Instant Access ISA or another ISA available at the time earning our ISA Standard Rate (which is variable). Shortly before your Fixed Rate ISA ends we'll write to you to remind you of this. Once switched over, you can choose to keep your funds in the account, choose another ISA or savings account from Tesco Bank, transfer your money to another provider or withdraw the funds without charge.

Terms & conditions

To help you decide whether the Tesco Bank Fixed Rate Cash ISA is right for you please read the Fixed Rate Cash ISA Key Features document and terms and conditions.

Access / Transfers

Already have some Cash ISA savings?

You can transfer your existing Cash ISAs to Tesco Bank and keep all your tax free savings in one place. If you have a Tesco Bank Fixed Rate Cash ISA you can only make transfers to it within 30 days of account opening. Your existing Cash ISA provider may have restrictions or charge you for transferring money out of your existing Cash ISA.

If you close your account or transfer your money out of it during the fixed term, we will charge you a fee equal to 30 days' interest on the balance of your account.

More about ISA transfers

Eligibility

What you need to know

There are two types of ISA: a Stocks & Shares ISA and a Cash ISA. The ISA allowance for the 2014/15 tax year is £11,880. You can subscribe to one Stocks & Shares ISA and one Cash ISA each tax year. The total amount you can pay into both is £11,880 of which the maximum you can put into a Cash ISA is £5,940. The tax year runs from 6 April to 5 April the following year.

Tesco Bank only offers a Cash ISA.

To apply for a Tesco Bank Cash ISA you'll need to:

  • Have a UK bank account you can make payments from and to
  • Be 18 years of age or over
  • Be resident or ordinarily resident in the UK or if not, be a Crown employee serving overseas or be married to or in a civil partnership with a Crown employee
  • Have not subscribed to a Cash ISA in this tax year (unless you wish to transfer those funds to your Tesco Bank Fixed Rate Cash ISA)
  • Please ensure that you have read the ISA Key Features document [PDF, 41KB] before applying for the product

Once you've successfully opened your ISA you can sign up for our Online Banking service, so you can view your new account straight away.

If you want to cancel

If you wish to cancel your Cash ISA, you have 30 days from receiving your welcome letter to do so. If you do cancel, we'll refund the money you've paid in. This won't affect your ISA allowance for the current tax year and you can still open another Cash ISA in that tax year.

Important information

Please read the Fixed Rate Cash ISA terms and conditions [PDF, 145KB] and the Fixed Rate Cash ISA Key Features document [PDF, 41KB] carefully before completing your application form.

  • The current interest rate for the Fixed Rate Cash ISA is 1.65% AER tax free. Rate correct as at 21 March 2014.
  • For key information about the Fixed Rate Cash ISA please see the summary box.
  • Annual interest will be added to your Fixed Rate Cash ISA account on the anniversary of the account opening.
  • The current rules for ISAs are subject to change by HM Revenue & Customs and the value of tax benefits depends on individual circumstances.

If you are a UK resident, for tax purposes, aged 18 or over you can apply. If you've already subscribed to a Cash ISA this tax year, you can only open a Fixed Rate Cash ISA with us if you transfer all your subscriptions from the existing provider, this year. Your ISA provider may charge a fee to transfer funds.



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