2 year Fixed Rate ISA

If you want to save a lump sum then a Fixed Rate cash ISA offers a tax-free interest rate that won't change during your chosen term.

A cash ISA allows UK residents aged 16 or over to save up to their annual ISA allowance tax-free with one provider each tax year. The allowance is £15,240 for 2016/2017. With other savings accounts, you may have to pay tax on the interest you earn, depending on your Personal Savings Allowance. The interest on a cash ISA is tax-free, so all the interest you earn, you keep.

Help with your existing ISA

Our support pages have information on how to manage your account and view interest rates.

Go to Savings & ISA support

Summary Box

Account name

Fixed Rate ISA

What is the interest rate?

The interest rate on this account is dependent on your chosen length of term and whether you choose to have interest paid annually or monthly. Interest is calculated daily.

Term Interest Rate AER/tax-free (fixed)
Monthly Annual
1 Year Fixed Rate ISA 0.65% 0.65%
2 Year Fixed Rate ISA 0.75% 0.75%

If you choose an Annual interest account:
Interest is paid annually on the anniversary of the account opening and on maturity. Interest can be added to your Fixed Rate ISA, or paid directly to a Nationwide current or savings account (subject to the terms and conditions of the receiving account), or a current account with another bank or building society.

If you choose a Monthly interest account:
Interest is paid monthly directly to a Nationwide current or savings account (subject to the terms and conditions of the receiving account), or a current account with another bank or building society.

Note: When interest is paid monthly, it cannot be added to the Fixed Rate ISA, and must be paid into another account. However, the final interest payment, when the account matures, is added to the Fixed Rate ISA.

Can Nationwide change the interest rate?

No, the interest rate on this account is fixed for the term of the ISA and cannot be changed.

What would the estimated balance be at the end of the Fixed Term based on a £1,000 deposit?

Term Annual Interest Rate AER/tax-free (fixed) Balance at end of term
1 Year Fixed Rate ISA 0.65% £1,006.50
2 Year Fixed Rate ISA 0.75% £1,015.06

The table above shows the balance on a deposit of £1,000 at the end of the fixed term with the fixed rate shown where interest is paid annually into the account.

Term Monthly Interest Rate AER/tax-free (fixed) Balance at end of term
1 Year Fixed Rate ISA 0.65% £1,000.54
2 Year Fixed Rate ISA 0.75% £1,000.63

This shows the balance on a deposit of £1,000 for the fixed term with the fixed rate shown where interest is paid monthly into another account. Only the final months interest payment is shown as being added to the account, as per the account terms and conditions.

Both projections are for illustration only and assume that:

  • The Fixed Rate ISA is not closed before the end of the fixed term
  • Individual circumstances do not change.

How do I open and manage my account?

To open this account:

  • You need to be aged 16 or over
  • You can have a maximum of one account holder
  • You can open this account with a minimum of £1 up to a maximum of the annual ISA allowance (currently £15,240 for tax year 2016-2017).

Please note: This is a lump sum account so you can’t add more money to the account once it has been opened.

You can open and manage this account:

  • Online using the secure application form (start your application below)
  • Via our Internet Bank or Banking app (if you are registered for Internet banking)

  • Using our Banking app (you must be registered for Internet banking)

  • In branch.

You can open this account with one lump sum by:

  • A transfer from an existing ISA with Nationwide, or another provider
  • Funding with your 2016/17 ISA allowance of £15,240 (from a Nationwide current account or instant savings account only).

Please note: you will need a minimum of £1 in the account for it to operate.

At maturity It’s easy to move your savings between your existing Nationwide savings accounts or to open a new savings account with us. We can also close your existing savings account, if you want us to. Just let us know when you open a new account on nationwide.co.uk, via our Internet Bank or Banking app (if you're registered) or come see us in branch.

Can I withdraw money?

No, this account doesn’t allow part withdrawals. Withdrawing the whole amount will close the account, which will result in loss of interest.

If you do close the account early you’ll be charged an early access charge. The amount charged will depend on the term of the Fixed Rate ISA. This will be equivalent to the number of days interest accrued at the current rate of your Fixed Rate ISA as detailed in the table below.

Term Early access charge
1 Year Fixed Rate ISA 90 days interest
2 Year Fixed Rate ISA 180 days interest

If there is insufficient earned interest to cover the early access charge then the charge will be taken from the funds in the account. The funds in the account, together with any interest earned and minus the early access charge, will be paid to you on closure of the account.

At the end of the term, your Fixed Rate ISA will mature into a Fixed Term ISA Maturity account, giving instant access to your money. Part withdrawals of a Fixed Term ISA Maturity account are only permitted through our Internet Bank. If you want to take money out in a branch, the account must be closed or all of the funds in the account transferred to another account. We’ll contact you before your ISA matures with more information. Alternatively you can choose to transfer your balance to another Nationwide account, held in either your name or a third party’s name(s).

Additional information

We’ll send you a certificate once your account is opened outlining your account balance and interest rate.

Interest rate definitions explained:

  • AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year
  • Tax-free is the contractual rate of interest payable where interest is exempt from income tax.

The tax information provided is based on our understanding of current law and HM Revenue & Customs practice, both of which may change.

The rates and information in this summary box are correct as of 1 December 2016.

This Summary Box sets out the key features of the savings account. For full details, please read the account terms and conditions.

Before you apply, please make sure you read the Summary Box and terms & conditions in full and print or save a copy of the PDFs below for future reference.