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Fixed Rate ISA

Set money aside for a year or longer in a fixed rate ISA. You won’t pay tax on the interest you earn and the rate will stay the same for a fixed term.

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What’s a fixed rate ISA?

Our fixed rate ISA is exactly what it sounds like: a type of tax-free savings account with a fixed rate. That means the interest rate won’t change during the term of your account, and you won’t pay any tax on the interest you earn. 

Terms usually range from one to five years, and the longer the term, the higher the interest rate. All that makes a fixed rate ISA ideal if you want to lock money away without touching it, or if you’re saving for a long-term goal – like a holiday or a wedding. 

Remember: after your initial deposit, you can only add or remove money whilst the issue is still open. After that you can't add further funds or withdraw until the term ends, though you can move it to another ISA with an interest penalty. Any deposits you make must be within the yearly ISA allowance limit. Read more about that here.

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Why choose a Fixed Rate ISA?

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One fixed rate

Once you open your fixed rate ISA, the interest rate will stay the same for the term of your account. That might be just one year, or up to five.

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Don't pay tax

Like other ISAs, the fixed rate ISA is a tax-free savings account. That means you won’t have to pay tax on the interest you earn.

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Unlock higher rates

By locking away your money for longer, you can unlock higher interest rates. While you won’t be able to access the money during the term of your account, it could be just the incentive you need to leave your savings pot untouched.

Choose an account

You can open a savings account through the Beehive Money app. All of our accounts are just for UK residents; we pay interest annually; and how often (and how much) you can withdraw depends on the account. Bear in mind too that any of our products can be withdrawn at any time.

Need help deciding? Choose how much you’re likely to deposit to see the estimated total interest you could earn in 12 months. We’ve calculated it using the AER (Annual Equivalent Rate), assuming you’ll put in the amount you’ve chosen on the day that account launches. This gives you an idea of how much interest you might earn, based on your deposit.

Things to know

Tax-free savings accounts (also known as Individual Savings Accounts or ISAs), are simple, really: with accounts like these you won’t have to pay tax on the interest you earn. There’s also a cap on how much you can add each tax year, depending on your circumstances, and keep in mind that the tax rules around ISAs could change.

AER, or Annual Equivalent Rate, is designed to make savings accounts easier to compare. The AER will show you what your interest rate would be if interest was paid back into your account. For accounts that pay interest annually, the gross rate and the AER should be the same. For accounts that pay interest monthly the AER will be slightly higher than the gross rate. This is because if you leave your monthly interest in the account you’d start to earn interest on the interest.

Use the calculator below to get an idea of how much you could save, and the interest you could earn:

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The amounts given above are just examples of the types of savings balances you could be aiming for. Some of our accounts have a maximum annual deposit limit so you may need to save over several years to achieve your target savings goal. The calculator results are just estimates and they’re for illustrative purposes only. We’ve based our calculations on the assumptions that the account is opened the day it’s made available; the interest rate doesn’t change; interest is paid straight into your account; and that you don’t put in any more money or take it out. So, if any of these things changes, so will the amount of money you earn on your deposit.

*We will pay your interest free of UK income tax. Your tax treatment will depend on your individual circumstances and may be subject to change in the future. The tax treatment of ISAs may also change. AER stands for Annual Equivalent Rate. It shows what the interest rate would be if the interest was reinvested in the account each year. Interest rates are variable unless otherwise stated.

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Ready to get started?

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Download and sign up

Install the Beehive Money app and sign up to be added to the waiting list. You can sign up for news and updates here too.

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Take your pick of accounts

Once you have access to Beehive, choose from a Lifetime ISA to help save for a home or retirement or one of our easy access accounts.

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Tap into mortgage advice

Coming soon! Let us do the searching for you. Access expert mortgage advice from those in the know - and get the right mortgage for you.

Your savings are protected

Your savings will be protected up to a total of £85,000 by the Financial Services Compensation Scheme. There’s more about that here.

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Looking for something different?

Don’t sweat it, we have a range of accounts you can choose from. Check them out below.

Lifetime ISA

If you’re 18-39 and looking to save for your first home, or set aside money for retirement, a Lifetime ISA could be ideal. This tax-free savings account is boosted by a 25% Government bonus, which means you could earn up to £1,000 a year in bonuses alone until you turn 50 – plus you’ll earn interest on top. 

See our Lifetime ISA arrow

Easy access

Our easy access account is a flexible account with very few restrictions, which makes it a great choice for those who want to put away money but be able to access it at any time, without charges or penalties, and it’s never, ever ‘locked’ away.

See our easy access accounts arrow

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