Fixed Rate Cash ISA
Save tax-free with guaranteed interest for 12 months
Lock in your savings and interest rate for 12 months
4.05% Gross/AER (fixed) for 12 months
FSCS protected up to a total of £85,000
Why choose our Fixed Rate Cash ISA?
- A guaranteed rate of 4.05% Gross/AER (fixed) for a 12 month term
After 12 months, your account will switch to an Instant Access Cash ISA and receive our standard variable rate, unless you tell us otherwise. - Watch your savings grow, tax-free
Save up to £20000 this tax year without paying tax on any interest you earn. The current rules for ISAs are subject to change by HM Revenue & Customs and the value of tax benefits depends on individual circumstances. - New deposits between £1 and £20,000
You can add funds within the first 30 days, up to the £20000 ISA limit for this tax year. This is your combined limit across all ISAs you hold. - Transfer your savings from other ISAs
If you've been saving in another ISA, you can transfer it to us. We'll make sure any money you’ve saved in previous tax years is moved without counting towards your ISA limit for the current tax year - as long as you do this via the ISA Transfer Process. - Save with us, bank with anyone
Unlike some other banks, you don’t need to have an existing account with us. - Manage your money in our Mobile Banking App or Online Banking
Our friendly call centre staff are here too if you want to speak with someone. - Your money is FSCS protected
Your savings are protected up to a total of £85,000 per person across all Barclays and Tesco Bank accounts. - No withdrawals during the 12 month term
If you need access to your money, you’ll need to close your account or transfer it to another provider. This will incur a charge of 90 days’ interest which will be deducted from the account balance.
*Rates shown in the Mobile App example are for illustrative purposes only.
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
We know ISAs can be difficult to get your head around, so we’ve got some useful FAQs below to help understand how they work.
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
Cash ISAs allow you to save up to a certain amount each tax year, without paying any tax on the interest you earn.
You can usually choose between an instant access or fixed rate account.
A fixed rate cash ISA has a fixed interest rate that won't change for the duration of the fixed term. They’re designed to prevent withdrawals. If you wish to, you typically have to withdraw the full balance and close the account, paying an early exit fee (ours is 90 days' worth of interest) to do so.
Please always check the rules of the account set out by the provider.
- You open and add money to the account – this is called making a deposit, which counts towards your overall ISA limit for the tax year.
- You can transfer funds saved in other ISAs. Funds moved from previous tax years won’t contribute to your ISA limit for the current tax year, as long as you use the ISA Transfer Process.
- If the account is a fixed rate ISA, you may only have a certain period of time to make your deposits. With our Fixed Rate Cash ISA you have 30 days.
- Interest can be paid annually or monthly - our accounts are paid annually only.
- The interest you earn won’t count towards your personal savings allowance, so you won’t pay tax on the interest you earn. Though it’s important to remember you won’t always have to pay tax on the interest you earn in a regular savings account, it depends if the amount of interest you earn exceeds your Personal Savings Allowance.
There’s no limit to how much money can be held in an ISA, though there is a limit to how much you can pay into your ISAs during each tax year. The tax year runs from 6 April to 5 April.
The maximum ISA allowance for the current tax year is £20000. This is the combined amount you can save across all ‘adult’ ISA types you hold (for example, Cash ISA, Stocks and Shares ISA, Innovative Finance ISA, Lifetime ISA).
You can transfer funds saved in previous tax years without counting towards your annual ISA limit, even if it exceeds £20000.
When you earn interest from a savings account that isn’t an ISA, it will count towards your Personal Savings Allowance.
This doesn’t mean you’ll pay income tax on the interest you earn (most people can earn some interest from their savings without paying tax*) but it could if the amount of interest you earn goes beyond your Personal Savings Allowance.
The Personal Savings Allowance depends on what rate of income tax you pay:
- Basic-rate (20%) taxpayers: can earn £1,000 in savings interest per year with no tax.
- Higher-rate (40%) taxpayers: can earn £500 in savings interest per year with no tax.
- Additional-rate (45%) taxpayers: £0 – they do not get an allowance.
- If you're a non-taxpayer – that is you have less than £12,570 income per year, you may be able to earn as much as £18,570 in savings interest tax-free.
If you’ve been saving in an ISA, the interest you earn won’t contribute to your Personal Savings Allowance. You can learn more about how ISAs work.
Tesco Bank won’t deduct tax from the interest you earn. The tax rules set by HM Revenue & Customs are subject to change, and the value of tax benefits depends on your individual circumstances.
*Source: HMRC “Tax on Savings Interest” 16/09/2024
Yes, but there are a few exceptions:
You can pay into and hold multiple ISAs in each tax year as long as you don’t pay in more than the £20000 limit between them all in this current tax year.
You can only pay into one Cash ISA with us per tax year. Some providers may allow you to have and deposit into more than one.
The combined maximum amount you can save across all ISA types you hold is £20000 for the current tax year. 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.
You can transfer funds from previous or existing ISAs without it counting towards your ISA limit for the current tax year.
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.
You have 30 days to fund a Fixed Rate Cash ISA with us. You can fund your account by:
Adding new 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 App.
Transferring funds from previous or existing ISA (via the ISA transfer process)
We can transfer all or part of any funds you’ve saved in previous tax years into your new account without it contributing to this year’s ISA limit. It's important not to withdraw and move the funds yourself, as doing so would lose its tax-free benefit and the transferred funds would contribute to your ISA limit for the year. You can continue to add new deposits for the current tax year up to the combined ISA limit of £20000.
You can also transfer funds you’ve saved during this current tax year in other ISAs and continue to make further deposits in the same tax year, as long as you don’t exceed your annual allowance of £20000 across all ISA types you hold.
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 and the funds you transfer don’t contribute to this year’s tax-free ISA limit, you need to transfer your funds using the ISA transfer process (this process is offered by Tesco Bank and most other providers).
- Open 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 provider.
- If you choose this option we’ll include an ISA Transfer Form with your Welcome Pack which we’ll send to you in the post. If you didn’t request this in your application and already have an account with us, you can still transfer to your existing Tesco Bank ISA.
- Return the ISA Transfer Form to us.
- 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 status and contribute to your £20000 ISA limit for this tax year.
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 had a Fixed Rate Cash ISA that’s turned to an Instant Access Cash ISA:
If your ISA has matured into an Instant Access Cash ISA when the term ended and you’d like to reinvest for another 12 month fixed term, there’s no need to apply for a new account. Simply give us a call and we’ll move you to the new fixed rate, whilst keeping the same account details. Deposits that remain in your account from previous tax years won’t contribute to the new year’s ISA limit.
It’s important you call us to do this rather than moving the money yourself as the transferred funds will contribute to your ISA limit for the current tax year, affecting how much you can save tax-free.
If you have an Instant Access Cash ISA and you’d like to move your funds to a new Instant Access ISA with us, you’ll need to:
- Apply for a new account online.
- Give us a call to transfer the funds from your existing account. It’s important you call us to do this so your transferred funds don’t contribute to your ISA limit for the current tax year.
If you’re looking to transfer your Fixed Rate Cash ISA to a new ISA with us before your term ends, you’ll incur a charge of 90 days’ interest which will be deducted from the account balance.
An Instant Access Cash ISA account can be moved at anytime.
Please bear in mind that although new ISA rules allow you to pay into more than one Cash ISA in each tax year, you can only deposit into one Cash ISA with us per tax year.
When your Fixed Rate Cash ISA matures your account will automatically switch to an Instant Access Cash ISA, earning our standard variable rate.
Only when your account has matured, you’ll have the following options:
- Reinvest your savings for another fixed 12 month term - to do this please call us so we can apply the new rate to your existing account.
- Reinvest your savings in another ISA type we offer - to do this it’s important you call us and don’t move the funds yourself. This is so we can move your money using the ISA transfer process which ensures your transferred funds won’t contribute towards the current tax year’s ISA limit and your interest payments remain tax-free.
- Open a different type of savings account with us - you can open a new account online and transfer the funds yourself. However, if you do this your money may lose its tax-free status.
- Transfer your funds to another ISA provider - to do this please contact your new provider directly. They’ll arrange everything with us to ensure your transferred funds won’t contribute towards the current tax year’s ISA limit and your interest payments remain tax-free.
- Withdraw your money and close your account
To find out when your account is maturing check your account on our Mobile Banking App or Online Banking.
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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