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 4.75% Gross/AER (fixed) on your savings Our interest ratesEarn 4.75% Gross/AER (fixed) 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 moneyInterest 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 bankingManage 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 circumstancesThe current rules for ISAs are subject to change by HM Revenue & Customs and the value of tax benefits depends on individual circumstances

    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

        4.75 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

          No – your Fixed Rate Cash ISA gives you a guaranteed rate of interest over the fixed term.

            The estimated balance would be £1,047.50.

            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.

              To subscribe to a Fixed Rate Cash ISA you must:

              • Be over 18 years of age.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.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.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 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.Not have exceeded the overall subscription limit for the year.

              You can apply online or over the telephone:

              • You must provide details of a Linked Account in your own name.You must provide details of 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).
              • You can manage you Account via Online Banking, the Mobile Banking App and over the telephone.You can manage you Account via Online Banking, the Mobile Banking App and over the telephone.
              • No – withdrawals are not permitted during the fixed term.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.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.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 endsIf 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
              • Previous years’ subscriptions may be transferred into the Account but must be complete within the first 30 daysPrevious 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 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

              Want to learn more about what ISAs are and how they work? Check out our ISA frequently asked questions.

              Ready to apply?

              Applying should take about 10 minutes.

              Frequently asked questions about ISAs

              There’s no limit to how much money can be in an ISA, though there is a limit to how much you can pay in during each tax year.

              The maximum allowance for the 2023/24 tax year is £20,000. This is the combined amount you can save across all ISA types you hold (e.g. Cash ISA, Stocks and Shares ISA, Lifetime ISA, Help to Buy ISA).

              You can transfer funds saved in previous tax years without counting towards your annual ISA limit, even if it exceeds £20,000. We’ll handle the transfer with your current ISA provider on your behalf. It's important not to withdraw and move the funds yourself, as doing so would lose it’s tax free benefits and contribute to your annual allowance.

                You can fund your account by:

                Making deposits

                • You can do this by sending money via your bank account. You’ll need your Cash ISA Sort Code and Account Number to do this – you’ll find this on your statement, your welcome letter or in Online Banking or the Mobile AppYou can do this by sending money via your bank account. You’ll need your Cash ISA Sort Code and Account Number to do this – you’ll find this on your statement, your welcome letter or in Online Banking or the Mobile App

                Transferring funds from a previous or existing ISA accounts (via the ISA transfer process)

                • You can transfer funds you’ve saved during this current tax year. You can then make further deposits in the same tax year, as long as you don’t exceed your annual allowance of £20,000 across all ISA types you hold.You can transfer funds you’ve saved during this current tax year. You can then make further deposits in the same tax year, as long as you don’t exceed your annual allowance of £20,000 across all ISA types you hold.
                • You can also transfer all or part of any funds saved in previous tax years without contributing to your annual allowance and then make further deposits for this tax year.You can also transfer all or part of any funds saved in previous tax years without contributing to your annual allowance and then make further deposits for this tax year.
                • You can transfer between ISA providers, between different Tesco Bank Cash ISA Accounts as well as between ISA types e.g. Cash ISAs, Stocks and Shares ISAs.You can transfer between ISA providers, between different Tesco Bank Cash ISA Accounts as well as between ISA types e.g. Cash ISAs, Stocks and Shares ISAs.

                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).

                Remember, you must fund your account within 30 days of opening your account.

                  You can but there are some exceptions:

                  • You can only pay into one of each type of ISA in each tax year (e.g. Cash ISA, Stocks and Shares ISA, Lifetime ISA, Help to Buy ISA) - you can hold more than one of each type as long as the subscriptions were made in different tax years. You can only pay into one of each type of ISA in each tax year (e.g. Cash ISA, Stocks and Shares ISA, Lifetime ISA, Help to Buy ISA) - you can hold more than one of each type as long as the subscriptions were made in different tax years.
                  • The combined maximum amount you can save across all ISA types you hold is £20,000 for the 2023/24 tax year. E.g, 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.The combined maximum amount you can save across all ISA types you hold is £20,000 for the 2023/24 tax year. E.g, 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 ISA accounts.

                  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.

                    If you don’t yet have a Tesco Bank Cash ISA you’ll need to:

                    • Open a new account - you can do this online, or by giving us a callOpen a new account - you can do this online, or by giving us a call
                    • During the application you’ll be asked if you’d like to transfer from another ISA providerDuring the application you’ll be asked if you’d like to transfer from another ISA provider
                    • If you choose this option we’ll include an ISA Transfer Form with your Welcome Pack.If you choose this option we’ll include an ISA Transfer Form with your Welcome Pack.
                    • Return the ISA Transfer Form to us. Remember, you have 30 days to fund your account, so you should start your transfer as soon as you can.Return the ISA Transfer Form to us. Remember, you have 30 days to fund your account, so you should start your transfer as soon as you can.
                    • We’ll handle the transfer with your current ISA provider on your behalf. It's important not to withdraw and move the funds yourself, as doing so would lose it’s tax free benefits and contribute to your annual allowance.We’ll handle the transfer with your current ISA provider on your behalf. It's important not to withdraw and move the funds yourself, as doing so would lose it’s tax free benefits and contribute to your annual allowance.

                    Once we receive your form, within 5 business days we’ll ask your existing Cash ISA provider to arrange for your funds to be transferred to your Tesco Bank Cash ISA. Your provider will have 5 business days from receiving the request to do this and the transfer should be 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). Transfers from ISAs other than Cash ISAs may take up to 30 days.

                    If you already have a Tesco Bank Cash ISA account and would like to transfer funds in please call us on 0345 678 5678* to arrange this.

                    *This number may be included as part of any inclusive call minutes provided by your phone operator.

                      If you wish to move some or all of the balance of your Tesco Bank Cash ISA to another provider, please contact your new provider directly - they will arrange everything with us. Please note that there is a fee equivalent to 30 days' interest on the account balance for transfers made from a Tesco Bank Fixed Rate Cash ISA.

                        Protecting your savings

                        Your eligible deposits with Tesco Bank are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. Any deposits you hold above the limit are unlikely to be covered.

                            Not the right account for you?

                            Are you an existing customer?

                            If you’re an existing customer and are looking for some help, visit our Existing Customer page.