Best fixed-rate ISAs: secure your returns with top fixed options compared
Locking in the best isa rates fixed can protect your savings from falling interest rates, with top one-year options reaching 4.28% AER as of November 2025. Fixed-rate individual savings accounts (ISAs) offer guaranteed returns over a set period, making them ideal for risk-averse savers in the current economic climate. This guide compares the best fixed isa rates across terms and providers, helping you find secure, tax-free growth.
What is a fixed-rate ISA?
A fixed-rate ISA is a tax-free savings account where the interest rate stays constant for the term, typically one to five years, shielding you from base rate fluctuations. Unlike variable-rate accounts, it provides certainty but limits access to funds. UK residents aged 18 or over can contribute up to £20,000 annually into any ISA combination, including fixed-rate cash ISAs, for the 2025/26 tax year. For more on what is an isa, check our beginner’s guide.
Key features and benefits
The core benefit is predictable earnings; for example, £10,000 at 4% AER yields £400 tax-free after one year. Interest is calculated daily but paid annually or at maturity, and all growth is sheltered from income tax. Fixed-rate ISAs suit those planning short- to medium-term goals, like building an emergency fund without rate drops.
How it differs from variable ISAs
Variable ISAs, such as easy-access cash ISAs, offer flexibility but rates can change with the Bank of England base rate, which recently fell to 4.75% in November 2025. Fixed options prioritise stability over liquidity, often with penalties for early withdrawal up to 365 days’ interest. If you need access, consider hybrids, but for the best isa fixed rates, commitment pays off.
Eligibility and allowance
You must be a UK tax resident to open one, with no upper age limit, though over-60s may find tailored deals. The £20,000 allowance resets each tax year from 6 April; unused amounts don’t carry over. Learn about isa limits 2025 for maximising contributions.
Top 1-year fixed ISA rates
The best isa rates 1 year fixed currently top at 4.28% AER, down slightly from earlier highs due to base rate cuts, but still competitive for short-term locking. Providers like those highlighted by MoneySavingExpert lead, with minimum deposits from £1. Ideal for savers expecting rate falls, these terms balance security and soonish access.
Current best rates (up to 4.28% AER)
Top picks include rates from 4.20% to 4.28% AER, available from major banks and building societies. The average one-year fixed ISA rate dipped to 3.89% in October 2025, per Moneyfacts data, underscoring the value of shopping around. For the latest, visit MoneySavingExpert’s best cash ISA guide.
| Provider | Term | AER | Min Deposit |
|---|---|---|---|
| NatWest | 1 year | 4.20% | £1 |
| Santander (via comparison sites) | 1 year | 4.25% | £500 |
| Top Market Leader (MSE pick) | 1 year | 4.28% | £1 |
This table compares leading best 1 year fixed isa rates; rates accurate as of November 2025 and subject to change. NatWest’s option, detailed on their site, lasts until December 2025 with early closure fees. Always verify eligibility.
Pros and cons of 1-year terms
- Pros: Quick access post-term; highest current best cash isa fixed rates; low commitment.
- Cons: Reinvestment risk if rates drop further; potential penalties for early exit.
Tip: Compare the best fixed isa rates 1 year using tools like Moneyfacts for daily updates, ensuring you lock in before cuts erode options.
Best 2-year, 3-year, and 5-year fixed ISAs
For longer horizons, the best isa fixed rates 2 years hover around 3.90% AER, with 5-year deals at 3.70%, offering stability amid uncertainty. Average rates for terms over 550 days rose to 3.84% in October 2025. These suit retirement planning or major purchases.
2-year rates
Top 2-year fixed cash isa rates reach 3.95% AER, slightly below one-year peaks but with compounded security. Providers like Santander offer competitive deals; see their 2-year fixed-rate ISA page for details. Weigh against inflation, currently around 2%.
3-year and 5-year options
Best 3 year fixed isa rates are about 3.80% AER, while 5-year best fixed isa rates for 5 years top 3.70%, per Money.co.uk. Longer terms lock in against further base rate reductions, but liquidity is key—penalties can exceed 10% of your balance.
Long-term rate trends
Rates have trended down post-2025 cuts, but fixed deals insulate you. For broader trends, explore Moneyfacts’ fixed-rate ISAs comparison.
Best fixed ISAs for over 60s
Seniors can access the best fixed isa rates for over 60s, often with bonuses up to 4.10% AER for one-year terms from specialist providers. These accounts prioritise accessibility and higher yields for retirees. Many banks offer age-targeted deals without minimums.
Senior-specific providers
Options like those from Leeds Building Society provide competitive best fixed cash isa rates for over 60s, around 4.00% AER. Focus on FSCS-protected accounts up to £85,000.
Higher rates or bonuses
Some include loyalty bonuses, boosting effective AER. For more, link to our best isa rates for over 60s guide.
Considerations for retirees
Choose terms matching income needs; avoid long locks if health varies. Tax-free status maximises pensions.
How to choose the best fixed ISA in 2025
Prioritise AER over headline rates, factor in your timeline, and assess penalties—aim for the best isa rates fixed uk that fit your risk. Base rate cuts to 4.75% make locking now wise, but compare via independents. Transfers are free within ISAs; see HMRC rules at gov.uk/individual-savings-accounts.
Fixed ISA rates outlook for 2025
Expect further softening to 3.5-4% as cuts continue, per expert views from Martin Lewis. Lock in top best fixed isa rates 2025 soon for security. For overall best isa rates, review our pillar guide.
Frequently asked questions
What is the best fixed rate ISA right now?
The top fixed-rate ISA currently offers 4.28% AER for one year, as recommended by MoneySavingExpert in their November 2025 update. This rate beats averages and provides tax-free security amid falling base rates. Shop around providers like NatWest for similar deals, ensuring FSCS protection and no hidden fees to maximise returns on your £20,000 allowance.
How do fixed-rate ISAs work?
Fixed-rate ISAs lock your money for a set period at a guaranteed AER, with interest compounding tax-free. You deposit within the annual limit, and funds mature at term end without access, incurring penalties otherwise. They differ from stocks and shares ISAs by focusing on capital preservation, ideal for conservative savers seeking the best cash isa fixed rates without market volatility.
What is the ISA allowance for 2025/26?
The ISA allowance stays at £20,000 for the 2025/26 tax year, covering all ISA types from 6 April 2025 to 5 April 2026. You can split it across cash, stocks, or lifetime ISAs, but exceeding triggers tax on excess interest. This cap encourages efficient use; for strategies on the best isa rates fixed within limits, consult HMRC guidelines to avoid over-contributions.
Are fixed ISAs worth it in 2025?
Yes, fixed ISAs remain worthwhile in 2025 for securing rates above inflation, especially post-base rate cut to 4.75%, outperforming easy-access options at 4.53% max. They suit those not needing immediate funds, offering peace of mind against further drops. However, if liquidity is priority, weigh penalties; top best fixed isa rates uk still provide strong value for medium-term goals.
Best fixed ISA for over 60s?
For over-60s, the best fixed isa rates for over 60s include 4.10% AER one-year deals from building societies like Coventry, with senior bonuses. These accounts often waive minimums and emphasise ease, aligning with retirement needs. Compare via sites like Moneyfacts for tailored best fixed cash isa rates for over 60s, ensuring alignment with pension drawdowns and tax-free benefits.
How have base rate cuts affected ISA rates?
The November 2025 base rate cut to 4.75% has pushed average fixed ISA rates down, like one-year from 3.91% to 3.89%, per Moneyfacts. Longer terms edged up slightly to 3.84%, but overall, savers face lower yields unless locked earlier. This underscores urgency for the best isa rates fixed 2025; monitor Bank of England decisions to time entries and mitigate erosion on savings pots.
What are the best fixed ISA rates for 2 years?
Current best fixed isa rates for 2 years top 3.95% AER, offering compounded growth over easy-access alternatives. Providers compete with bonuses, but check early withdrawal terms up to 180 days’ interest lost. For mid-term security, these beat variable rates post-cuts, ideal if you anticipate stable needs through 2027.
