What is the best Lloyds Fixed Rate ISA?

What is Lloyds’ best Fixed Rate ISA?

Lloyds’ current best Fixed Rate ISA is their 1-year Fixed Rate Cash ISA offering 4.00% AER (fixed), but you may find higher rates by comparing Fixed Rate ISAs from other providers. If you’re looking for the top Fixed Rate ISA on the market, it is often worth looking beyond high street banks, as these don’t always offer the most competitive rates. 

What are the current Lloyds Fixed Rate ISAs?

Lloyds currently offers two Fixed Rate ISAs: a 1 year Fixed Rate Cash ISA and a 2 year Fixed Rate Cash ISA. After holding either of these accounts for the set time period, your account will automatically change to an Instant Cash ISA, which currently offers a variable rate of 1.10% AER/tax-free on balances up to £24,999. Higher balances are eligible for a slightly better rate, but the highest rate currently available with a Lloyds Instant Cash ISA is 1.10% AER (variable) on balances up to £24,999. 

• 1 Year Fixed Rate Cash ISA: 4.00% AER (fixed). Minimum opening deposit is £3,000 or more. As this is a fixed-rate account, you’ll need to agree to lock your money away for one year. If you want to close your account or withdraw your funds before the end of this period, you’ll pay a charge equivalent to 90 days’ loss of interest on the amount you withdraw
• 2 Year Fixed Rate Cash ISA. 3.85% AER (fixed). Minimum opening deposit is £3,000 or more. As this is a fixed-rate account, you’ll need to agree to lock your money away for two years. If you want to close your account or withdraw your funds before the end of this period, you’ll pay a charge equivalent to 180 days’ loss of interest on the amount you withdraw

Source: Lloyds ISAs. Rates accurate as of May 2025.

Can I withdraw money from a Lloyds Fixed Rate ISA?

Yes, you can withdraw your money from a Lloyds Fixed Rate ISA, but if you do this before the end of your fixed term, you’ll pay an early access charge equal to 90 days' interest if you have their 1-Year Fixed Rate Cash ISA, or 180 days’ interest with their 2-Year Fixed Rate Cash ISA. Once your fixed term ends, your account will automatically mature into a Lloyds Instant Cash ISA with a variable rate, meaning your rate can change depending on Lloyds’ interest rates at the time.

Can I transfer money into a Lloyds Fixed Rate ISA?

Yes, you can transfer money into a Lloyds Fixed Rate ISA, whether you already have an ISA with Lloyds or you’ve opened one with another provider. ISA rules let you open and pay into more than one Cash ISA each tax year, but Lloyds will only let you have one Cash ISA with them. So if you already have a Lloyds Cash ISA and you’d like a Lloyds Fixed Rate ISA, you’ll need to request a transfer. 

How to find the best Fixed ISA Rates

There are hundreds of Fixed Rate ISAs to choose from, with many high-street banks offering them to new and existing customers. Opening an ISA with the provider you currently bank with may seem like the easiest option, especially if you’ve been with them for many years and you’ve never had any issues. However, you may find a much higher interest rate and better customer service elsewhere. 

By switching to a more competitive interest rate, you’ll reach your savings goals sooner and reduce the impact inflation has on your money.

To find the right Fixed Rate ISA for you, compare multiple accounts from different providers before making a decision. The interest rate is important, but look for a provider with excellent reviews and intuitive savings features too. Once you’ve found the right one, you can usually open an account and make a deposit in minutes.