Fixed Rate Cash ISA
Tax-free saving and guaranteed interest rate for a fixed term
Want to make a lump sum deposit and leave your money to grow tax-free? You could consider a Fixed Rate Cash ISA. In the first 30 days you can pay in up to £20,000 (for the tax year 2023/24 - this is the combined limit for all ISA types) and we reward you with a fixed interest rate.
- Earn 5.10% Gross/AER on your savings Our interest rates
- Interest rate guaranteed for one year - you can't withdraw any money during this fixed term unless you close the account and pay a fee Access to your money
- Manage your money with online and telephone banking
- The current rules for ISAs are subject to change by HM Revenue & Customs and the value of tax benefits depends on individual circumstances
How our Fixed Rate Cash ISA works
Get started with your ISA
Make the most of your tax-free savings with minimum effort.
Once your Fixed Rate Cash ISA is set up, you have 30 days to make as many deposits as you like up to the maximum allowance of £20,000 for the 2023/24 tax year - this is the combined limit for all ISA types. ISA Types
Contact your account provider to make payments into your account. You’ll need your Fixed Rate Cash ISA Sort Code and Account Number to do this.
Transfer your existing ISA
If you already have some ISA savings, you can transfer your existing ISAs to a Tesco Bank Cash ISA and keep all your tax-free savings in one place. With our Fixed Rate Cash ISA, you need to do this in the first 30 days after the account is opened.
Remember to check with your existing ISA provider first, as they may have restrictions on transfers.
To understand more about types of ISA and your tax-free savings allowance, take a look at the important information. Important information
What you can transfer
You can transfer ISA subscriptions (money paid in) without losing your tax free benefit. You can transfer subscriptions in the following ways:
- between ISA providersbetween ISA providers
- between different Tesco Bank Cash ISA accountsbetween different Tesco Bank Cash ISA accounts
- between Cash ISAs, Stocks and Shares ISAs and other eligible types of ISA (please note: some ISAs have restricted terms)between Cash ISAs, Stocks and Shares ISAs and other eligible types of ISA (please note: some ISAs have restricted terms)
- to ensure your interest payments remain tax free, you need to transfer your funds using the ISA transfer process (this process is offered by Tesco Bank and most other providers)to ensure your interest payments remain tax free, you need to transfer your funds using the ISA transfer process (this process is offered by Tesco Bank and most other providers)
You can transfer:
- All of your current year’s subscriptions to a Cash ISA, Stocks & Shares ISA or other eligible types of ISA. You can then make further subscriptions to your new ISA in the same tax year, as long as you don't exceed your annual allowance.All of your current year’s subscriptions to a Cash ISA, Stocks & Shares ISA or other eligible types of ISA. You can then make further subscriptions to your new ISA in the same tax year, as long as you don't exceed your annual allowance.
- All or part of any subscription made in previous tax years.All or part of any subscription made in previous tax years.
- You can only subscribe to one of each type of ISA (e.g. Cash ISA, Stocks and Shares ISA) in a tax year; however, you can hold more than one of each type of ISA as long as the subscriptions were made in different tax years. In addition, if you have previously subscribed to a Cash ISA in the year but subsequently transferred your money to a different type of ISA, you will still be able to use any remaining ISA allowance up to the annual tax-free allowance of £20,000.
Other providers may have restrictions on transfers, so you should always check this with them before transferring money to another provider.
How to transfer an existing ISA to Tesco Bank
Customers should complete an application either online or by telephone so we can begin the transfer process during the application. That will help us set up your ISA as quickly as possible. If you wish to apply by telephone, you can call us on 0345 678 5678. This number may be included as part of any inclusive call minutes provided by your phone operator.
If you already have a Cash ISA with us and would like to transfer an existing Cash ISA which you hold with another provider, you can do this by completing a Transfer Authority Form. Please call us on 0345 678 5678 if you would like to arrange this.
Remember, if you are making a transfer to our Fixed Rate Cash ISA you must do this within 30 days of account opening.
12-month fixed term
Make sure you’re comfortable with putting your money away for 12 months.
The Tesco Bank Fixed Rate Cash ISA gives you a guaranteed interest rate for one year - but this means that you can't withdraw any money during the fixed term unless you close your account and withdraw all of the money.
If you close your account or transfer your money out of it during the fixed term, we'll charge you a fee equal to 90 days' interest on the balance of your account.
At the end of your fixed term
When your fixed rate period ends, the account will become an Instant Access Cash ISA (or another Cash ISA available at that time), and your money will earn the variable standard ISA rate that applies at that time.
Shortly before this happens, we'll write to you to remind you.
Once it’s switched over, you have lots of options. 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.
Interest rates
The annual interest rate is 5.10% Gross/AER. This is fixed for the 12- month term of your ISA as long as your money is kept in the ISA for the fixed term.
Interest rate is correct as at 7 November 2023.
At the end of your fixed rate period, your money will earn our variable ISA standard rate that applies at that time.
See the information on accessing your money to learn more about what happens at the end of your fixed term. Access to your money
Interest rate definitions
- Gross is the interest rate paid before tax is deducted.Gross is the interest rate paid before tax is deducted.
- Annual Equivalent Rate (AER) illustrates what the interest rate would be if it was paid and compounded each year.Annual Equivalent Rate (AER) illustrates what the interest rate would be if it was paid and compounded each year.
How interest is calculated and paid
Interest is calculated daily and is added to your ISA account on the anniversary of the account opening. The interest paid is tax free.
The current rules for ISAs are subject to change by HM Revenue & Customs and the value of tax benefits depends on individual circumstances.
Financial Services Compensation Scheme
Your eligible deposits with Tesco Bank are currently protected up to the current Financial Services Compensation Scheme limit, the UK's deposit protection scheme. Any deposits you hold above the current limit are not covered.
Other ways to save
Maxed out your tax-free allowance? See our other fixed rate savings accounts
Compare our savings accounts
Need more flex with your tax-free savings? Get it with our Instant Access Cash ISA
Important information
We want you to be happy with your savings account. To help you decide whether the Tesco Bank Fixed Rate Cash ISA is right for you please read the key features document and terms and conditions.
Summary Box for our Fixed Rate Cash ISA
|
Account name |
Fixed Rate Cash ISA |
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What is the interest rate? |
5.10% Gross/AER* Fixed for 12 months Interest will be earned at a daily rate and paid into the account 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 |
|
Can Tesco Bank change the interest rate? |
No – your Fixed Rate Cash ISA gives you a guaranteed rate of interest over the fixed term. |
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What would the estimated balance be after 12 months based on a £1,000 deposit? |
The estimated balance would be £1,051.00 This is only an example and does not take into account your individual circumstances. The example assumes that no further deposits or withdrawals are made and any interest earned stays in the account. |
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How do I open and manage my account? |
To subscribe to a Fixed Rate Cash ISA you must: Be over 18 years of age Be 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 Complete a Cash ISA Declaration form confirming you are eligible to have a Cash ISA Not have subscribed to another Cash ISA in the same tax year unless you are going to transfer all of your subscriptions from the current tax year from your existing Cash ISA to your Tesco Bank Cash ISA Not have exceeded the overall subscription limit for the year You can apply online or over the telephone: 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 must provide details of a Linked Account in your own name Deposits must be made within the first 30 days of account opening (after this no further deposits allowed within the fixed term) You can manage you Account via Online Banking, the Mobile Banking App and over the telephone |
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Can I withdraw money? |
No – 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 At the end of the fixed term we will write to you at least 14 days before the end of your chosen term with options of 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 Interest Rate (variable). We will send you a copy of the relevant Terms and Conditions before your term ends |
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Additional information |
Previous years’ subscriptions may be transferred into the Account but must be complete within the first 30 days The account can be cancelled within 30 days' of receiving the welcome letter ISA rules are subject to change by Her Majesty's Treasury |
Types of ISA and allowances
There are a number of different ISA types: Cash ISA, Stocks and Shares ISA, Innovative Finance ISA, Lifetime ISA and Help to Buy ISA.
You can only subscribe to one of each type of ISA each tax year. The tax year runs from 6 April to 5 April the following year.
The ISA limit for 2023/24 tax year is £20,000. This is the maximum amount you can pay in total into ISAs this tax year.
This can be paid into one type of ISA (as long as you are eligible) or a combination of all types.
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.
Tesco Bank only offers a Cash ISA.
If you decide to cancel your Cash ISA, this won't 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.
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Contact us
Have a question or need help applying? Our friendly, UK-based customer service team is here to help.