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Why choose a 2 year fixed rate ISA?

If you don’t want to commit your money for too long, but are looking to earn a better rate of interest than is available on a 1 year ISA, a 2 year fixed rate ISA could be your best option. Further deposits after account opening are not usually allowed. View today's best rates below or read our guide to 2 year fixed rate ISAs to learn more.  

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Browse Fixed Rate ISAs

Best ISA rates - 2 year fixed

  • Paragon Bank Logo
    Paragon Bank 2 Year Fixed Rate Cash ISA FSCS logo
    FSCS logo
    AER
    1.70%
    Account Type
    Cash ISA
    Notice / Term
    2 Year Bond
    Interest Paid
    Anniversary
    Opening Account
    Available Online Not Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 1.70% paid at £500
    AER 1.70% paid at £500
    Interest Paid Anniversary
    Interest payment Interest can be paid away or compounded
    Min Opening Amount £500
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    Earlier access subject to 180 day loss of interest.
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account pending instructions/withdrawal

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid tax free

    Opening Restrictions

    N/A

    ISA Information

    Transfers In - Cash ISAs
    Transfers In - Stocks & Shares ISAs
    Transfers In - Help to Buy ISAs
    Additional Permitted Subscription ISA
    Transfer Notes -
    Flexible Rules Apply
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    N/A
  • Paragon Bank Logo
    Paragon Bank 2 Year Fixed Rate Cash ISA FSCS logo
    FSCS logo
    AER
    1.70%
    Account Type
    Cash ISA
    Notice / Term
    2 Year Bond
    Interest Paid
    Monthly
    Opening Account
    Available Online Not Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 1.69% paid at £500
    AER 1.70% paid at £500
    Interest Paid Monthly
    Interest payment Interest can be paid away or compounded
    Min Opening Amount £500
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    Earlier access subject to 180 day loss of interest.
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account pending instructions/withdrawal

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid tax free

    Opening Restrictions

    N/A

    ISA Information

    Transfers In - Cash ISAs
    Transfers In - Stocks & Shares ISAs
    Transfers In - Help to Buy ISAs
    Additional Permitted Subscription ISA
    Transfer Notes -
    Flexible Rules Apply
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    N/A
  • Aldermore Logo
    Aldermore 2 Year Fixed Rate Cash ISA FSCS logo
    FSCS logo
    AER
    1.60%
    Account Type
    Cash ISA
    Notice / Term
    2 Year Bond
    Interest Paid
    Anniversary
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 1.60% paid at £1K
    AER 1.60% paid at £1K
    Interest Paid Anniversary
    Interest payment Interest can be paid away or compounded
    Min Opening Amount £1,000
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    Earlier access on 180 day loss of interest.
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account pending instructions/withdrawal

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid tax free

    Opening Restrictions

    N/A

    ISA Information

    Transfers In - Cash ISAs
    Transfers In - Stocks & Shares ISAs
    Transfers In - Help to Buy ISAs
    Additional Permitted Subscription ISA
    Transfer Notes ISA transfers forms within 10 business days.
    Flexible Rules Apply
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    N/A
  • Aldermore Logo
    Aldermore 2 Year Fixed Rate Cash ISA FSCS logo
    FSCS logo
    AER
    1.60%
    Account Type
    Cash ISA
    Notice / Term
    2 Year Bond
    Interest Paid
    Monthly
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 1.59% paid at £1K
    AER 1.60% paid at £1K
    Interest Paid Monthly
    Interest payment Interest can be paid away or compounded
    Min Opening Amount £1,000
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    Earlier access on 180 day loss of interest.
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account pending instructions/withdrawal

    Information

    Min Age 18
    Max Age 0
    Taxation
    Interest is paid tax free

    Opening Restrictions

    N/A

    ISA Information

    Transfers In - Cash ISAs
    Transfers In - Stocks & Shares ISAs
    Transfers In - Help to Buy ISAs
    Additional Permitted Subscription ISA
    Transfer Notes ISA transfers forms within 10 business days.
    Flexible Rules Apply
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    N/A
  • Cynergy Bank Logo
    Cynergy Bank Fixed Rate Cash ISA FSCS logo
    FSCS logo
    AER
    1.60%
    Account Type
    Cash ISA
    Notice / Term
    2 Year Bond
    Interest Paid
    Anniversary
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Available At Branch Available By Mail Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 1.60% paid at £500
    AER 1.60% paid at £500
    Interest Paid Anniversary
    Interest payment Interest must be compounded
    Min Opening Amount £500
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    Earlier access subject to 180 day loss of interest.
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be reinvested in a further Fixed Rate/Fixed Term account on equivalent/similar terms

    Information

    Min Age 16
    Max Age 0
    Taxation
    Interest is paid tax free

    Opening Restrictions

    N/A

    ISA Information

    Transfers In - Cash ISAs
    Transfers In - Stocks & Shares ISAs
    Transfers In - Help to Buy ISAs
    Additional Permitted Subscription ISA
    Transfer Notes -
    Flexible Rules Apply
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    N/A
  • Skipton BS Logo
    Skipton BS 2 Year Online Fixed Rate ISA Issue 96 FSCS logo
    FSCS logo
    AER
    1.35%
    Account Type
    Cash ISA
    Notice / Term
    2 Year Bond
    Interest Paid
    Anniversary
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 1.25% paid at £500, 1.35% paid at £20K
    AER 1.25% paid at £500, 1.35% paid at £20K
    Interest Paid Anniversary
    Interest payment Interest can be paid away or compounded
    Min Opening Amount £500
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    Earlier access on closure only on 180 day loss of interest.
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be reinvested in a further Fixed Rate/Fixed Term account on equivalent/similar terms

    Information

    Min Age 16
    Max Age 0
    Taxation
    Interest is paid tax free

    Opening Restrictions

    N/A

    ISA Information

    Transfers In - Cash ISAs
    Transfers In - Stocks & Shares ISAs
    Transfers In - Help to Buy ISAs
    Additional Permitted Subscription ISA
    Transfer Notes Within 7 days of account opening.
    Flexible Rules Apply
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    N/A
  • Skipton BS Logo
    Skipton BS 2 Year Online Fixed Rate ISA Issue 96 FSCS logo
    FSCS logo
    AER
    1.35%
    Account Type
    Cash ISA
    Notice / Term
    2 Year Bond
    Interest Paid
    Monthly
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Go To Provider's Site
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 1.24% paid at £500, 1.34% paid at £20K
    AER 1.25% paid at £500, 1.35% paid at £20K
    Interest Paid Monthly
    Interest payment Interest can be paid away or compounded
    Min Opening Amount £500
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    Earlier access on closure only on 180 day loss of interest.
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be reinvested in a further Fixed Rate/Fixed Term account on equivalent/similar terms

    Information

    Min Age 16
    Max Age 0
    Taxation
    Interest is paid tax free

    Opening Restrictions

    N/A

    ISA Information

    Transfers In - Cash ISAs
    Transfers In - Stocks & Shares ISAs
    Transfers In - Help to Buy ISAs
    Additional Permitted Subscription ISA
    Transfer Notes Within 7 days of account opening.
    Flexible Rules Apply
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    N/A
  • Al Rayan Bank Logo
    Al Rayan Bank Fixed Term Deposit Cash ISA FSCS logo
    FSCS logo
    AER
    1.81%
    Expected Rate
    Account Type
    Cash ISA
    Notice / Term
    24 Month Bond
    Interest Paid
    Quarterly
    Opening Account
    Available Online Available At Branch Available By Mail Available By Telephone Available By Mobile
    Managing Account
    Available Online Available At Branch Available By Mail Available By Telephone Available By Mobile
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 1.80% paid at £1K
    AER 1.81% paid at £1K
    Expected Profit Paid Quarterly
    Interest payment Interest can be paid away or compounded
    Min Opening Amount £1,000
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account pending instructions/withdrawal

    Information

    Min Age 16
    Max Age 0
    Taxation
    Interest is paid tax free

    Opening Restrictions

    N/A

    ISA Information

    Transfers In - Cash ISAs
    Transfers In - Stocks & Shares ISAs
    Transfers In - Help to Buy ISAs
    Additional Permitted Subscription ISA
    Transfer Notes Accepted for up to 30 days from account opening.
    Flexible Rules Apply
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    This bank operates under Islamic finance principles, the rates displayed represent the expected profit rate.
  • Ford Money Logo
    Ford Money Fixed Cash ISA 2 Year FSCS logo
    FSCS logo
    AER
    1.75%
    Account Type
    Cash ISA
    Notice / Term
    2 Year Bond
    Interest Paid
    Anniversary
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 1.75% paid at £500
    AER 1.75% paid at £500
    Interest Paid Anniversary
    Interest payment Interest can be paid away or compounded
    Min Opening Amount £500
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    Earlier access subject to 180 day loss of interest.
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be reinvested in a further Fixed Rate/Fixed Term account on equivalent/similar terms

    Information

    Min Age 16
    Max Age 0
    Taxation
    Interest is paid tax free

    Opening Restrictions

    N/A

    ISA Information

    Transfers In - Cash ISAs
    Transfers In - Stocks & Shares ISAs
    Transfers In - Help to Buy ISAs
    Additional Permitted Subscription ISA
    Transfer Notes -
    Flexible Rules Apply
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    N/A
  • Ford Money Logo
    Ford Money Fixed Cash ISA 2 Year FSCS logo
    FSCS logo
    AER
    1.75%
    Account Type
    Cash ISA
    Notice / Term
    2 Year Bond
    Interest Paid
    Monthly
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 1.74% paid at £500
    AER 1.75% paid at £500
    Interest Paid Monthly
    Interest payment Interest can be paid away or compounded
    Min Opening Amount £500
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    Earlier access subject to 180 day loss of interest.
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be reinvested in a further Fixed Rate/Fixed Term account on equivalent/similar terms

    Information

    Min Age 16
    Max Age 0
    Taxation
    Interest is paid tax free

    Opening Restrictions

    N/A

    ISA Information

    Transfers In - Cash ISAs
    Transfers In - Stocks & Shares ISAs
    Transfers In - Help to Buy ISAs
    Additional Permitted Subscription ISA
    Transfer Notes -
    Flexible Rules Apply
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    N/A

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Note

Eligible deposits with UK institutions are protected by the Financial Services Compensation Scheme up to a maximum level of protection of £85,000 per person per institution.

Disclaimer

All rates subject to change without notice. Please check all rates and terms before investing or borrowing.

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How does a 2 year ISA work?

Leanne Macardle

Leanne Macardle

Editor

At a glance

  • A medium-term option for ISA cash you don’t need to access
  • Make sure you can commit your money for the full two-year term
  • Further deposits after account opening are not usually allowed

In the 2018-19 tax year (a tax year runs from 6 April to the following 5 April), you can deposit up to £20,000 into a cash ISA. You are only allowed to open one new cash ISA per tax year, so if you opt for a 1-year fixed rate ISA, you will not be able to open another cash ISA until the next tax year. The only exception to this is if a provider allows you to ‘share’ your ISA allowance across their range of cash ISAs.

You may only be able to make a single deposit and/or transfer in to your 2-year ISA when you open the account. You might be permitted to make further deposits into the ISA, but this is only while the product remains on general sale. However, as soon as the fixed rate ISA is withdrawn from sale to new customers, you won’t be able to put any further money into it.

Although you will be able to transfer money out of your ISA, there will usually be a hefty interest penalty to pay. If you think you’ll need access to your money within the 2-year term, look instead at an ISA that will allow easy access, or penalty-free access after a notice period has been served.

Looking for easy access?

Moneyfacts tip Leanne Macardle

Don’t open a 2 year fixed rate ISA if you think you’ll need access to your money during the term. If you make a withdrawal the interest penalty charged could mean that you’ll earn less interest on your ISA savings than if you had opted for the top-paying easy access cash ISA instead.

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