Fixed Rate Cash ISA
Save tax-free with guaranteed interest for 12 months
Lock in your savings and interest rate for 12 months
4.40% Gross/AER (fixed) for 12 months
FSCS protected up to a total of £120,000
Why choose our Fixed Rate Cash ISA?
- A guaranteed rate of 4.40% Gross/AER (fixed) for a 12 month term
After 12 months, your account will switch to an Instant Access Cash ISA and receive our standard variable rate, unless you tell us otherwise. Interest is paid annually. - Watch your savings grow, tax-free
Save up to £20000 this tax year without paying tax on any interest you earn. The current rules for ISAs are subject to change by HM Revenue & Customs and the value of tax benefits depends on individual circumstances. - New deposits between £1 and £20,000
You can add funds within the first 30 days, up to the £20000 ISA limit for this tax year. This is your combined limit across all ISAs you hold. - Transfer your savings from other ISAs
If you've been saving in another ISA, you can transfer it to us. We'll make sure any money you’ve saved in previous tax years is moved without counting towards your ISA limit for the current tax year - as long as you do this via the ISA transfer process. - Save with us, bank with anyone
Unlike some other banks, you don’t need to have an existing account with us. - Manage your money in our Mobile Banking App or Online Banking
Our friendly call centre staff are here too if you want to speak with someone. - Your money is FSCS protected
Your savings are protected up to a total of £120,000 per person across all Barclays and Tesco Bank accounts. - No withdrawals during the 12 month term
If you need access to your money, you’ll need to close your account or transfer it to another provider. This will incur a charge of 90 days’ interest which will be deducted from the account balance.
*Rates shown in the Mobile App example are for illustrative purposes only.
Please read the Summary Box before moving on to apply.
A Summary Box sets out the key features of a savings account. It's designed to help you easily compare between accounts. For full details please read the account terms and conditions.
Summary Box:
Fixed Rate Cash ISA
4.40% Gross/AER* Fixed for 12 months
Interest will be earned at a daily rate and paid into the account annually on the anniversary of the account opening and at account closure.
*Gross is the interest rate paid before tax is deducted
Annual Equivalent Rate (AER) illustrates what the interest rate would be if paid and compounded each year
No – your Fixed Rate Cash ISA gives you a guaranteed rate of interest over the fixed term.
The estimated balance would be £1,044.00.
Estimated balances are for illustrative purposes only and assume no further deposits, withdrawals and any interest earned stays in the account.
To subscribe to a Fixed Rate Cash ISA you must:
- be over 18 years of agebe over 18 years of age
- be a resident in the UK, a Crown employee serving overseas, or be married to or in a civil partnership with a Crown employee serving overseasbe a resident in the UK, a Crown employee serving overseas, or be married to or in a civil partnership with a Crown employee serving overseas
- complete a Cash ISA declaration form to confirm you are eligible to have a cash ISAcomplete a Cash ISA declaration form to confirm you are eligible to have a cash ISA
- not have exceeded the overall subscription limit for the yearnot have exceeded the overall subscription limit for the year
Applying for your account:
- You must provide a Linked Account in your own nameYou must provide a Linked Account in your own name
- You can deposit a minimum of £1, you don't need to make a minimum deposit on a regular basis and there is no maximum balance limit (subject to ISA subscription limits)You can deposit a minimum of £1, you don't need to make a minimum deposit on a regular basis and there is no maximum balance limit (subject to ISA subscription limits)
- Deposits must be made within the first 30 days of account opening (after this no further deposits allowed within the fixed term)Deposits must be made within the first 30 days of account opening (after this no further deposits allowed within the fixed term)
Managing your account:
- You can manage your account on the Mobile App, Online Banking and over the phone
- No – withdrawals are not permitted during the fixed termNo – withdrawals are not permitted during the fixed term
- If you require access to your money the account must be closed or transferred to another provider. This will incur a charge of 90 days’ interest which will be deducted from the account balance (unless you close the account within 30 days of opening)If you require access to your money the account must be closed or transferred to another provider. This will incur a charge of 90 days’ interest which will be deducted from the account balance (unless you close the account within 30 days of opening)
- We will send you a reminder before the end of your chosen term with options on what you can do with your money. If we do not hear from you, your Fixed Rate Cash ISA will become an Instant Access Cash ISA and will earn interest at the ISA standard variable rate. We will send you a copy of the relevant Terms and Conditions before your term ends.We will send you a reminder before the end of your chosen term with options on what you can do with your money. If we do not hear from you, your Fixed Rate Cash ISA will become an Instant Access Cash ISA and will earn interest at the ISA standard variable rate. We will send you a copy of the relevant Terms and Conditions before your term ends.
- You can transfer an ISA held with another ISA provider to your account, but it must be completed within the first 30 days of account openingYou can transfer an ISA held with another ISA provider to your account, but it must be completed within the first 30 days of account opening
- The account can be cancelled within 30 days of receiving the welcome letterThe account can be cancelled within 30 days of receiving the welcome letter
- ISA rules are subject to change by HMRCISA rules are subject to change by HMRC
We know ISAs can be difficult to get your head around, so we’ve got some useful FAQs below to help understand how they work.
Frequently asked questions
A Cash ISA is a savings account that lets you save up to a certain amount each tax year, without paying any tax on the interest you earn. Interest is paid either monthly or annually depending on the account, our ISA accounts pay interest annually. Interest you earn from an ISA does not contribute to your Personal Savings Allowance.
A Fixed Rate Cash ISA is a type of Cash ISA which pays a fixed interest rate for a set period, meaning the rate will not change during the fixed term. These accounts are usually designed to lock in your savings, so withdrawals are restricted. If you need to access your money early, you may need pay an early exit charge to either close the account or transfer the balance to another provider. For example, our Fixed Rate Cash ISA has an fee of 90 days' interest, which will be deducted from the account balance.
Please always check the rules of the account set out by the provider.
The current rules for ISAs are subject to change by HM Revenue & Customs and the value of tax benefits depends on individual circumstances.
To add money to a Cash ISA, you have two options:
- Make a deposit from another account, which counts towards your overall ISA limit for the tax year.
- Use the ISA Transfer Process to transfer funds from an existing ISA. Funds moved from previous tax years using the ISA Transfer Process do not contribute to your ISA allowance for the current tax year.
- If the account is an instant access ISA or a junior ISA, you’ll be able to continue making deposits when it suits you (up to the ISA limit).
- For some fixed rate ISAs, you have a limited time period in which you can add money to the account. For the Tesco Bank Fixed Rate Cash ISA, deposits must be made within the first 30 days of account opening.
Interest is paid either monthly or annually depending on the account, our ISA accounts pay interest annually. You will not pay tax on the interest you earn from an ISA and this interest does not contribute to your Personal Savings Allowance.
Please always check the rules of the account set out by the provider.
The current rules for ISAs are subject to change by HM Revenue & Customs and the value of tax benefits depends on individual circumstances.
There’s no limit to how much money you can hold in an ISA overall.
However, there is a limit to the combined amount you can pay in during each tax year (from 6 April to 5 April). This is known as the ISA allowance and is set by the government. It applies to all 'adult' ISA types you hold, such as Cash ISA, Stocks and Shares ISA, Innovative Finance ISA, Lifetime ISA.
The ISA allowance for the current tax year is £20,000.
You can transfer funds saved in previous tax years without counting towards your current ISA allowance, even if the total exceeds £20,000.
The current rules for ISAs are subject to change by HM Revenue & Customs and the value of tax benefits depends on individual circumstances.
On 26 November, the UK Government announced upcoming changes to the budget which includes changes to ISA limits and rules.
You can find out what’s changing and what this means in our guide on the 2025 Autumn Budget announcement.
When you earn interest from a savings account that is not an ISA, it will count towards your Personal Savings Allowance.
This does not necessarily mean you'll pay income tax on the interest you earn, but it could if the amount of interest you earn goes beyond your Personal Savings Allowance. Most people can earn some interest from their savings without paying tax*.
The Personal Savings Allowance depends on what rate of income tax you pay:
- Basic rate (20%) taxpayers: £1,000 in savings interest per year with no tax.
- Higher rate (40%) taxpayers: £500 in savings interest per year with no tax.
- Additional rate (45%) taxpayers: £0 - additional rate taxpayers do not get a Personal Savings Allowance.
- If you're a non-taxpayer (you have less than £12,570 income per year), you may be able to earn as much as £18,570 in savings interest tax-free.
If you’ve been saving in an ISA, the interest you earn will not contribute to your Personal Savings Allowance. To learn more about how ISAs work, please see our guide What is an ISA and how do they work?
Tesco Bank will not deduct tax from the interest you earn. The tax rules set by HM Revenue & Customs are subject to change, and the value of tax benefits depends on your individual circumstances.
*Source: GOV.UK "Tax on savings interest"
Yes, but there are a few exceptions:
- You can pay into and hold multiple ISAs in each tax year as long as you don’t pay in more than the £20,000 limit between them all in this current tax year.
- You can only pay into one cash ISA with us per tax year. Some providers may allow you to have and deposit into more than one.
- The combined maximum amount you can save across all ISA types you hold is £20,000 for the current tax year. For example, if you saved £10,000 into a cash ISA in this tax year, the maximum which can be saved into other types of ISA in the same tax year is £10,000.
- You can transfer funds from previous or existing ISAs without it counting towards your ISA limit for the current tax year.
If you decide to cancel your cash ISA, this will not affect your ISA allowance for the current tax year and you can still open another cash ISA in that tax year. You have 30 days from receiving your welcome letter to cancel your cash ISA. If you do cancel, we'll refund the money you've paid in.
The current rules for ISAs are subject to change by HM Revenue & Customs and the value of tax benefits depends on individual circumstances.
You have 30 days to fund a Fixed Rate Cash ISA with us. You can fund your account by:
Adding new deposits
You may need to wait up to 48 hours after account opening to send money via your bank account. You’ll need your Fixed Rate Cash ISA sort code and account number. You can find your account details by logging in to our Mobile Banking App or Online Banking, on your statement, or in your Welcome Pack.
Transferring funds from an existing ISA (via the ISA Transfer Process)
You can use the ISA Transfer Process to transfer funds from an existing ISA. Tesco Bank and most other providers offer this process.
Funds moved from previous tax years using the ISA Transfer Process do not contribute to your ISA allowance for the current tax year. It's important not to withdraw and move the funds yourself, as doing so would mean you would lose the tax-free benefit and the transferred funds would contribute to your ISA allowance for the year. You can continue to add new deposits for the current tax year up to the combined ISA allowance of £20,000.
You can also transfer funds you’ve saved during this current tax year in other ISAs and continue to make further deposits in the same tax year, as long as you do not exceed your annual allowance of £20,000 across all ISA types you hold.
You can transfer between ISA providers, between different Tesco Bank Cash ISAs, and between ISA types, such as Cash ISAs or Stocks and Shares ISAs.
The current rules for ISAs are subject to change by HM Revenue & Customs and the value of tax benefits depends on individual circumstances.
To transfer an existing ISA with a different provider to Tesco Bank, you need to open a Cash ISA account with us, fill out an ISA Transfer Form, and post the form to us so we can arrange the transfer on your behalf.
You should not withdraw your money from your other ISA yourself, as it would lose its tax-free status and moving it into your Tesco Bank Cash ISA would contribute to your ISA allowance for the current tax year.
You can request an ISA transfer when applying for a Tesco Bank Cash ISA and we'll include an ISA Transfer Form with your Welcome Pack.
If you already have a Tesco Bank Cash ISA, you can either download and print an ISA Transfer Form from our ISA Transfers page or contact us and we'll post a form to you.
Post your completed form to: Tesco Bank, PO Box 27039, Glasgow, G2 9GB.
Once we receive your form, we'll contact your current ISA provider to arrange the transfer.
Transfers from Cash ISAs are typically completed within 15 business days of us receiving your form. We’ll start paying interest from the day your existing Cash ISA provider sends us your money or 16 business days after we receive your form (if this is earlier).
Pleaae note that transfers from other ISA types may take up to 30 days.
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 want to move your existing Tesco Bank Cash ISA to a new Tesco Bank Cash ISA, please contact us so we can arrange the transfer. This ensures that your transferred funds do not contribute to your ISA allowance for the current tax year. You should not withdraw the money yourself, as it would lose its tax-free status and moving it into a new Tesco Bank Cash ISA would contribute to your ISA allowance for the current tax year.
Please bear in mind that, although ISA rules allow you to pay into more than one Cash ISA in each tax year, you can only deposit into one Cash ISA with us per tax year.
If your Fixed Rate Cash ISA has matured and you'd like to reinvest for another 12-month fixed term:
- If your Fixed Rate Cash ISA term has ended and your account has matured into an Instant Access Cash ISA, you do not need to apply for a new account to reinvest for another 12-month fixed term.
- Contact us and we'll move your account to the new fixed rate.
- Your account details will stay the same and deposits that remain in your account from previous tax years will not contribute to your ISA allowance for the current tax year.
- If you’re looking to transfer your Fixed Rate Cash ISA to a new ISA with us before your term ends, you’ll be charged a fee of 90 days’ interest, which will be deducted from the account balance.
If you have an Instant Access Cash ISA and you'd like to move your money to a new ISA with us:
- Apply for a new account online.
- Contact us to transfer the funds from your existing account.
- You can transfer your Instant Access Cash ISA at any time without being charged any fees.
- If you’re looking to transfer your Fixed Rate Cash ISA to a new ISA with us before your term ends, you’ll be charged a fee of 90 days’ interest, which will be deducted from the account balance.
The current rules for ISAs are subject to change by HM Revenue & Customs and the value of tax benefits depends on individual circumstances.
The easiest way to check the current interest rate for your savings account is to log in to our Mobile Banking App or Online Banking.
To see your current interest rate in our Mobile App, select your savings account from the home screen.
To see your current interest rate in Online Banking, select your savings account from your Online Banking Overview.
If you want to see how your rate compares or look back on what we’ve offered in the past 5 years, you can also check the interest rate on your existing savings account.
As rates can vary depending on your product and when you opened it, checking both your current rate and previous rates can help you understand how your rate has changed over time.
At the end of your fixed term, your Fixed Rate Cash ISA will mature into an Instant Access Cash ISA, earning our standard variable rate.
Once your account has matured, you'll have the following options:
- Reinvest for another 12-month fixed term or open a new ISA account with us. For more information on both of these options, please refer to our FAQ How do I move my existing Tesco Bank Cash ISA to a new Tesco Bank Cash ISA?
- Open a different type of savings account with us. You can open a new account online and transfer the funds. Please note that, if you do this, your money may lose its tax-free status.
- Transfer your funds to another ISA provider. To do this, please contact the other provider directly. They’ll arrange everything with us to ensure your that transferred funds will not contribute towards your ISA allowance for the current tax year and that your interest payments will remain tax-free.
- Withdraw your money and close your account. Please note that, if you do this, your money may lose its tax-free status.
You can find out when your account will mature in our Mobile Banking App or Online Banking.
The current rules for ISAs are subject to change by HM Revenue & Customs and the value of tax benefits depends on individual circumstances.
View or download the account documents
Protecting your savings
Your eligible deposits held by a UK establishment of Barclays Bank UK PLC are protected up to a total of £120,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. This limit is applied to the total of any deposits you have with the following: Barclays, Barclays Business Banking, Barclays Premier Banking, Barclays Wealth Management and Tesco Bank. Any total deposits you hold above the limit between these brands are unlikely to be covered.
Please ask for further information or visit www.fscs.org.uk.
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