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 current tax year - this is the combined limit for all ISA types) and we reward you with a fixed interest rate.
- Earn 4.05% Gross/AER (fixed) on your savings Our interest ratesEarn 4.05% 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
4.05% 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 £1,040.50.
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 resident in the UK, a Crown employee serving overseas, or be married to or in a civil partnership with a Crown employee serving overseasBe 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 confirming you are eligible to have a Cash ISAComplete a Cash ISA Declaration form confirming 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 details of a Linked Account in your own nameYou 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 your account on the Mobile App, Online Banking and over the phoneYou 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 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 endsWe 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
- 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
Want to learn more about what ISAs are and how they work? Check out our ISA frequently asked questions.
Our banking business has now transferred to Barclays
Barclays will continue to use the Tesco Bank brand on all existing Tesco Bank banking products through a long-term strategic partnership with Tesco. If your application is successful, there’ll be no immediate changes to how you use and manage your account on a day-to-day basis.
To find out more and view a range of helpful documents just go to Tesco Bank’s transfer scheme page.
Financial Services Compensation Scheme
- Before the transfer became effective on 1 November 2024, if you had eligible deposits with both Tesco Bank and Barclays, you were covered up to £85,000 with each bank by the FSCS.Before the transfer became effective on 1 November 2024, if you had eligible deposits with both Tesco Bank and Barclays, you were covered up to £85,000 with each bank by the FSCS.
- Now that we are part of Barclays, any combined eligible deposits held with Tesco Bank and Barclays will be covered by the FSCS up to a limit of £85,000 across all the accounts you hold.Now that we are part of Barclays, any combined eligible deposits held with Tesco Bank and Barclays will be covered by the FSCS up to a limit of £85,000 across all the accounts you hold.
If you’re concerned about the effect of the transfer on your eligible deposits and/or the statutory protection that may be available to you, please call us on 0345 678 5678*
Changes to ISA Manager
Barclays is now the ISA Manager for all Tesco Bank ISAs, including Instant Access Cash ISAs, Fixed Rate Cash ISAs and Junior Cash ISAs.
*Calls may be recorded. The costs from mobile phones may vary. If you’re calling from outside the UK, please check with your service provider for the cost of calling this number from overseas.
View or download the account documents
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 current tax year is £20,000. This is the combined amount you can save across all ISA types you hold (for example, 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 48 hours after account opening 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.You can do this 48 hours after account opening 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, for example, 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, for example, 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 pay into and hold multiple ISAs in each tax year (for example, Cash ISA, Stocks and Shares ISA, Lifetime ISA, Help to Buy ISA).You can pay into and hold multiple ISAs in each tax year (for example, Cash ISA, Stocks and Shares ISA, Lifetime ISA, Help to Buy ISA).
- 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 that 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 current tax year. For example, if you saved £10,000 into a Cash ISA in this tax year, the maximum that 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 90 days' interest on the account balance for transfers made from a Tesco Bank Fixed Rate Cash ISA.
Protecting your savings
Your eligible deposits held by a UK establishment of Barclays Bank UK PLC are protected up to a total of £85,000 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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