TSB launches new 18-month Cash Isa - here's how it compares

26 March 2019

TSB has boosted its Isa range just in time for the end of the tax year with the launch of a new 18-month fixed rate Cash Isa.

For the first time TSB is offering an 18-month fixed rate Isa with 1.6% interest. The bank has also brought back a three-year fixed rate Isa offering 1.85% interest.

The accounts can be opened in-branch or online with a minimum initial deposit of £3,000.

Transfers for the current and previous years’ Isa savings are accepted. On maturity, your fixed-rate Isa will mature into a Cash Isa Saver without bonus, which currently pays a variable interest rate of 0.3% tax-free.

However, you will be penalised if you decide to take out your money before the maturation date.

For the 18-month account this is the equivalent to 135 days interest on the amount taken out or transferred. On the three-year account it is equivalent to 270 days interest.

Paul Izon, head of savings at TSB, says: “It’s clear that ISA’s are making a comeback particularly as so many believe an ISA is the best option for them. It’s also encouraging to see that lots of people want to save more this year than last year.

“Our new and improved rates are some of the best in the market and are a great way for customers to save and get a healthy return on their savings for whatever they have planned in the future. At TSB, we believe every customer should consider having an ISA account, so that they are making the most of their tax-free allowances.”

TSB's Isas

Isa ProductDetails
18-month fixed rate Isa1.6% tax free/AER variable
Entirely new product to TSB
Minimum opening balance of £3,000
2-year fixed rate Isa1.70% tax free/AER variable
Minimum opening balance of £3,000
3-year fixed rate Isa1.85% tax free/AER variable
Minimum opening balance of £3,000
Junior Cash Isa3.25% tax free/ AER variable
For children under the age of 18
Cash Isa0.60% AER variable for first 12 months. 0.30% AER thereafter
Minimum deposit £1,000

How they compare

If you are prepared to wait six months longer you could beat the rate by over 0.3%.

OakNorth is offering a rate of 1.94% for its two-year fixed rate Cash Isa. You can open this account online with a minimum initial investment of £1,000.

Shawbrook Bank is offering a two-year fixed rate cash Isa at 1.91%, which can be opened online for £1,000.

Just below this, Santander and Kent Reliance have two-year fixed rate cash Isas at 1.90%.

The Santander rate is only available to 123 World and Select customers whereas the other products are open to all.

You can get an even better rate if you lock your money away in a long-term fixed rate Isa.

Currently, the best rate out there is from Shawbrook Bank at 2.3%.

This is a five- year fixed-term deal that ends the account can be managed online with a minimum deposit of £1,000.

The next best rate is from Coventry Building Society at 2.15% and is a fixed-term deal that ends on 31 May 2024 and the account can be managed online or in-branch.


In reply to by anonymous_stub (not verified)

I can't find any reference the the TSB fixed rate ISA anywhere !!!

In reply to by anonymous_stub (not verified)

Junior Cash Isa 3.25%How can the TSB get away with victimisation of savers over 18 by paying interest rates way below this.

Isa account

I would like to open an isa account with you guys plz if that is ok

In reply to by Jamie Thompson (not verified)

18 month fixed rate cash isa account 1.6%

My wife and I currently each have cash Isa accounts with The Yorkshire Bank. Each currently valued at £6482.00. We would like to transfer these isa accounts to the TSB, into their 18 month fixed rate ISA providing a fixed interest rate of 1.6%

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