Understanding Fixed Rate Cash ISAs

A quick overview

In this video, we look at whether a Fixed Rate Cash ISA could be right for you. We explain how they work, including paying money in, earning a fixed rate of interest and locking your savings away for a set time.

Transcript

Does this sound like you? 

• You want to benefit from tax-free saving.
• You want to know how much interest your savings will earn.
• You have a lump sum ready to save. 
• And you’re happy to lock that money away for a set time. 

If any of that resonates you might want to think about opening a Fixed Rate Cash ISA. 

Here's how Fixed Rate Cash ISAs work at Principality.

For starters any interest you earn on savings you have in any cash ISA is tax-free. That’s one of the reasons Cash ISAs are a popular way to save.

With a Principality Fixed Rate Cash ISA you have a short window of time to pay money into your account when you open it. And once that passes, you can't add any more. 

The idea is to leave that money untouched, earning interest, until your account matures.

However long you choose to save for, your interest rate won’t change during that time – it’s fixed. 

And during that fixed term, you can’t withdraw any of your money. Once you've paid it in, you should be prepared to leave it there until your account matures.

Closing your account

You can close your account early or transfer your ISA to another provider but this might mean you lose out on interest or get charged a fee - so be careful. Read your terms & conditions and try to only pay in money you're happy to lock away for the full term.

If you're looking for certainty and you're happy to lock your money away for a set time, a Fixed Rate Cash ISA might be a good option for you.

Return to what is a fixed rate cash ISA?

Want to learn more?

Understand more about ISAs.