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About fixed rates

Fixed rate accounts pay the same rate of interest over a set time. They can be great for people who want to save a lump sum and know exactly what interest they'll earn.

For example, a fixed rate cash ISA lets customers earn a fixed return and save tax-free, up to their annual ISA allowance (usually around £20,000).

Money is typically also locked in for the length of the fixed term. Sometimes you can take money out during this time, but you would usually have to pay a charge based on lost interest.

Questions and answers

Paying interest on the tax earned depends upon the type of account you have and your Personal Savings Allowance.

For general savings, basic rate tax payers won’t pay tax on the first £1,000 of interest they earn. The allowance is £500 for higher rate tax payers, and additional rate taxpayers won’t receive an allowance. With a Cash ISA you can save tax-free up to your annual ISA allowance. The tax year runs from 6 April to 5 April the following year.

Find out more about Personal Savings Allowance.

Before your fixed rate period ends, your provider will contact you to let you know what your options are. You will then be able to choose what you’d like to do when the account matures. If you decide to not do anything, your account will become a variable rate account.

Looking for a new fixed rate?

We’re now part of Nationwide and no longer offer new fixed rate savings accounts. Explore their range to find the right rate for you.

Explore fixed rates at Nationwide

Save with confidence

We're covered by the Financial Services Compensation Scheme. Your combined deposits with Virgin Money and Nationwide are covered up to £120,000 per person.

View the FSCS guarantee

Other ways to save

Cash ISAs

Access Savings

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