Halifax fixed ISA saver pays 4.25% AER

Last updated: May 16th, 2012
Feature by Steve Fitch
Savings and Cash ISAs
The 2012/2013 tax year began on Friday 6 April, which saw the annual ISA limit increase to £11,280, of which £5,640 can be in cash. We round up the top cash ISA rates on offer at the moment.

Everyone aged over 18 can save up to £11,280 in an ISA during the 2012/13 tax year - of which £5,640 can be done in cash.

This means all interest you earn in your ISA is free of tax - so a cash ISA should always be the first home for your savings.

If you've used your cash ISA allowance for this tax year, check out our list of top savings accounts. 

WHAT'S OUT THERE?

When picking an ISA, the first thing to decide is whether you want to fix your interest rate or opt for more flexibility with a variable rate.

If you want to secure the interest rate you earn on your savings, and are happy to lock your money away for a set period of time, then a fixed-rate ISA might be for you.

However, if you want to make additional deposits beyond the upfront opening deposit, or make withdrawals, then a variable-rate ISA is probably more suitable. Just be aware that the interest you earn could decrease in line with the Bank of England's base rate (currently just 0.5%).

VARIABLE-RATE ISAs

  • Kent Reliance Banking Services tracker ISA Issue 2 offers a headline rate of 3.50% AER on a minimum investment of £1,000. Transactions can be made online, by post or in branch. The interest rate is guaranteed to pay 3.00% above the Bank of England base rate throughout the account term.
  • Nationwide Flexclusive ISA Issue 2 offers savers a rate of 3.50% AER on a minimum deposit of £1. The ISA can be operated in branch only.
  • Cheshire BS direct cash ISA (Issue 2) offers savers a rate of 3.50% AER on minimum investments of £1,000. Transactions can be made by post only and transfers in from other providers are not accepted. 
  • Santander Direct ISA (Issue 9) offers savers a headline rate of 3.30% AER on a minimum investment of £2,250. Transactions can be made online or by phone and the rate on this account is payable for at least 12 months, after which the rate reverts to a tiered variable rate. Transfers in are allowed.
  • Coventry Building Society Junior Cash ISA pays 3.25% AER on a minimum deposit of just £1. Transactions can be made in branch, by post or over the phone. Transfers in from other providers are allowed.

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FIXED-RATE ISAs

FIVE YEAR

  • Nottingham BS starter ISA (Issue 2) offers investors a rate of 5% AER on a minimum deposit of £10. Transactions can be made in branch only, however, the 5% rate will become a variable rate when the ISA matures on 5/4/2013. Early transfer out will result in 180 days loss of interest.
  • Halifax ISA Saver Fixed offers a headline rate of 4.25% AER on minimum investments of £500. Signing up to the ISA enters you into the Halifax saver prize draws, but you must maintain a minimum balance of £5,000 for a full calendar month prior to the draw. It allows transfers in.
  • Birmingham Midshires is offering a five-year ISA paying 4.25% AER. The minimum investment is £500 and you can only manage it by post. Transfers from other ISAs are permitted. Transfers in are allowed.
  • Leek United fixed-term, flexible-rate ISA pays a rate of 4.25% AER on a minimum investment of £1,000. Transactions can be made in branch or by post and interest is paid annually.
  • Julian Hodge Bank cash ISA offers a rate of 4% AER on a minimum balance of £5640. Transactions can be made in branch, by post or over the phone. Interest is paid annually.

FOUR YEAR

  • Halifax ISA Saver Fixed pays 4.15% AER if you are willing tie your money away for four years. Minimum transfer in for this ISA is £500. Transactions can be made by post or in branch. Transfers in are allowed.
  • Bank of Scotland offers a four year fixed-rate cash ISA paying 3.80% AER on a minimum £500 investment. Transactions can be made in branch or over the phone and transfers are accepted from other cash ISA providers provided the funds are received from the customer's existing provider within 60 days of account opening. 
  • Julian Hodge Bank Cash ISA offers 3.75% AER. Minimum investment is £5,340 and the ISA can be accessed in branch, by post or over the phone. Transfers in are accepted.
  • Wesleyan Bank Limited Fixed-rate Cash ISA pays 3.75% AER for an initial investment of £5,340. The ISA can be managed online only and transfers in are accepted.
  • Lloyds TSB four-year fixed-rate cash ISA offers savers a rate of 3.60% AER on a minimum investment of £3,000. Transactions can be made in branch or over the phone. Transfers from other providers are accepted.

THREE YEAR

  • Bank of Cyprus Loyalty Fixed-rate ISA offers a headline rate of 4.20% AER on minimum investments of £1. The ISA can be managed online, in branch, over the phone or by post. Transfers in are allowed.
  • Halifax ISA saver fixed pays a headline rate of 4% AER on a minimum investment of £500. Transactions can be made in branch or over the phone. Registration automatically makes you eligable for the Halifax Savers prize draws.
  • Cheltenham & Gloucester Fixed-rate ISA (Issue 13) pays 3.90% AER for a minimum initial investment of £500. The ISA can be managed in branch or by post, and interest is paid annually. Transfers in are accepted.
  • Royal Bank of Scotland fixed-rate ISA (Issue 44) pays a headline rate of 3.80% AER on minimum investments of £1,000. Transactions can be made online, in branch or over the phone. Transfers in from other ISAs are permitted and interest is paid annually.
  • Natwest fixed-rate ISA (Issue 47) pays a rate of 3.80% AER if you are willing to invest £1,000. Transactions can be made in bra

18 MONTHS/TWO YEAR

  • Santander Fixed-rate Major ISA pays a headline rate of 4% AER for two years. The ISA can be accessed in branch, by post or over the phone. Transfers in are allowed.
  • Halifax ISA Saver Fixed pays a rate of 3.70% AER on a minimum investment of £500. Signing up to the ISA enters you into the Halifax saver prize draw, but you must maintain a minimum balance of £5,000 for a full calendar month prior to the draw. Transfers in are allowed.
  • Royal Bank of Scotland fixed-rate ISA (Issue 47) offers a rate of 3.60% AER for a minimum investment of £1,000. Transactions can be made in branch, over the phone or online and interest is paid annually.
  • Natwest fixed-rate ISA (Issue 46) offers a rate of 3.60% AER on a minimum investment of £1,000. Transactions can be made in branch, over the phone or online. Interest is paid annually.
  • Post Office Ltd fixed-rate cash ISA offers a rate of 3.60% AER on a minimum investment of £500. Transactions can be made by post or over the phone. Transfers in from other ISA providers are permitted subject to a minimum transfer of £500.