What is the best TSB Fixed Rate ISA?
A Fixed Rate ISA is a savings account where you lock your money away for a set period and earn a guaranteed interest rate in return. Your interest will be tax-free and protected from fluctuating interest rates, but you won’t be able to withdraw your money until the end of your fixed term (usually between one to five years).
In this guide, we’ll run over all the Fixed Rate ISAs currently available from TSB. If you’re looking for the best Fixed Rate ISA on the market, keep in mind that the familiar high-street banks don’t always offer the most competitive rates.
Withdrawing funds before maturity will incur a charge. Partial withdrawals from some Fixed Rate ISAs are restricted. Tax treatment depends on individual circumstances and may be subject to change in the future
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What is TSB’s best Fixed Rate ISA?
TSB’s current best Fixed Rate ISA is their 2 Year Fixed Rate Cash ISA, offering an interest rate of 3.75% AER (fixed). Although TSB offers a more competitive interest rate than some of the other big banks, there are plenty of other smaller providers offering even higher interest rates, so it might be worth shopping around!
What are the current TSB Fixed Rate ISAs?
TSB currently offers three Fixed Rate Cash ISAs: an 18 Month Fixed Rate Cash ISA, a 2 Year Fixed Rate Cash ISA and a 3 Year Fixed Rate Cash ISA. All three ISAs can be opened with as little as £1, but all deposits and transfers must be paid into the account within the first 30 days. If you’d like to save more money after this date, you’ll need to open another account. When your ISA reaches maturity, TSB will automatically turn it into a Cash ISA Saver without a bonus, meaning your interest rate may be much lower.
- 18 Month Fixed Rate ISA: 3.68% AER/tax-free (fixed). Requires a minimum opening deposit of £1. As this is a fixed-rate account, you’ll be agreeing to lock away your money for a fixed period of 18 months. If you choose to withdraw your funds before this point, this will close the account and you’ll have to pay an early access charge equivalent to 135 days' interest.
- 2 Year Fixed Rate ISA: 3.75% AER/tax-free (fixed). Requires a minimum opening deposit of £1. As this is a fixed-rate account, you’ll be agreeing to lock away your money for a fixed period of 2 years. If you choose to withdraw your funds before this point, this will close the account and you’ll have to pay an early access charge equivalent to 180 days' interest.
- 3 Year Fixed Rate ISA: 3.70% AER/tax-free (fixed). Requires a minimum opening deposit of £1. As this is a fixed-rate account, you’ll be agreeing to lock away your money for a fixed period of 3 years. If you choose to withdraw your funds before this point, this will close the account and you’ll have to pay an early access charge equivalent to 270 days' interest.
Source: TSB Fixed Rate ISAs. Rates accurate as of May 2025.
Can I withdraw money from a TSB Fixed Rate ISA?
Yes, you can withdraw your money from a TSB Fixed Rate ISA, but if you do this before the fixed term ends you’ll pay a penalty. The exact charge will depend on your chosen fixed term and will be based on a set number of days’ interest. If you have their 18 Month Fixed Rate ISA, you’ll pay 135 days' interest for withdrawing your funds, 180 days' interest for a 2 Year Fixed Rate ISA and 270 days' interest for a 3 Year Fixed Rate ISA.
Can I transfer money into a TSB Fixed Rate ISA?
Yes, you can transfer money into a TSB Fixed Rate ISA by opening an account and completing a transfer form. TSB will then request a transfer from your existing provider, which is usually processed within a few weeks, depending on how quickly TSB and your old provider complete the necessary steps.
How to find the best Fixed ISA Rates
There are hundreds of Fixed Rate ISAs to choose from across a range of banks, building societies and modern app-based providers. Opening an ISA with a high street bank you already hold an account with might seem like the easiest option, but this could see you missing out on a better interest rate elsewhere.
By choosing an ISA with a competitive rate, you can reach your savings goals faster and reduce the impact of inflation. And, with a fixed-rate account, you’ll protect your savings from falling interest rates too!
The interest rate is important, but it’s a good idea to look for excellent customer service and an easy-to-use savings app too.
We’re launching a Fixed Rate ISA!
Keep your eyes peeled for the launch of our latest competitive savings product very soon. In the meantime, check out the other accounts we offer
