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  • Fixed rate cash ISA guide

    If you’re looking to guarantee a tax-free return on your savings now and in the future a Fixed Rate cash ISA could be the right account for you. In return for locking away your money, you can be certain of how much interest your savings will earn tax-free.

    See our fixed rate cash ISA's

What’s an ISA?

An ISA is an ‘Individual Savings Account’ which allows UK taxpayers to benefit from tax-free interest on their savings now and in the future - so any interest you earn is all yours.

Each tax year the government sets a maximum amount you can invest into an ISA. This can be split between a cash and a stocks and shares ISA. You can find details of this years’ ISA allowance here.

Who can pay into an ISA?

To have a cash ISA you must be a UK resident. For those who would like to invest into a stocks and shares ISA you must be 18 or over. You can only pay into one cash and one stocks and shares ISA each tax year as long as you do not exceed your ISA alowance.

Can I transfer money between ISAs?

Yes. From the 1 July 2014 ISAs became more flexible so not only can you transfer from a cash ISA into a stocks and shares ISA, but you can now also transfer money from your existing stocks and shares ISA into a cash ISA.

This recent change is important for those savers who have in the past used stocks and shares ISAs in an effort to receive improved returns, but no longer want to risk their capital investment and so would like to switch to a cash ISA.

When transferring an ISA you should always make sure you do it through an ISA transfer request with your bank or building society, otherwise the interest you earn will lose its tax-free status, which applies now and in the future.

Paragon Bank’s Fixed Rate cash ISAs

Our Fixed Rate cash ISA offers you the certainty of knowing how much interest you’ll earn in return for locking away your money for a set period of time. And typically the longer you choose to invest the higher the rate of interest. The tax-free interest rate stays the same throughout the term of your account.

Key features

  • All the interest you earn is tax-free now and in the future, providing you have it paid to the account
  • The tax-free interest rate is fixed, so you’ll know exactly how much you’ll earn on your savings
  • Earn a higher tax-free interest rate from locking away your savings, from one to five years
  • Easily transfer existing ISAs from other providers to Paragon Bank. We’ll do this electronically if we’re able to or you can complete an ISA transfer form then return it to us
  • You can choose to receive your interest monthly or annually
  • Remember, any interest you have paid to your nominated account will lose its tax-free status

How do our Fixed Rate cash ISAs work?

  • All our accounts are available online only. When you apply, we’ll ask you to set up a nominated account. This is the account you’ll need to use to make your deposits and withdrawals
  • A Fixed Rate cash ISA is designed for a one-off lump sum investment and ISA transfers in. This means that once you’ve made your opening payment (plus any ISA transfers), you can’t add to your account during the fixed term
  • If you make any withdrawals or transfers to another provider during the fixed term then interest penalties will apply and these are dependent on the term of your account
  • Always remember that any withdrawals you make from previous tax years’ allowance cannot be replaced. So if you decide to take money out of your account you’ll lose that entitlement
  • Your account is managed online. This means you can check your balance, print statements and carry out transactions whenever you like
  • When your Fixed Rate cash ISA term ends, your fixed interest rate on your account will end and we’ll provide you with options to either help you reinvest or access your money
  • When your fixed interest rate ends, unless you provide us with alternative instructions, your ISA will automatically switch to an Easy Access cash ISA which you can access at any time

See our fixed rate cash ISA's

Easy access cash isas

Our Easy Access cash ISA gives you the flexibility to benefit from tax-free interest on your savings now and in the future, you can add to or withdraw from your savings as and when it suits you.

Read more

Richard's story

“It’s good to see some new competition coming into the savings market. Interest rates from established banks have been poor so it’s encouraging to see new entrants adding a bit of competitive tension.”

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Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551