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Best 3 year fixed rate cash ISAs

A three-year fixed ISA can be an attractive compromise for savers who want to secure a guaranteed rate for a longer period but don’t want to restrict access to their money for as long as five years.

See the best three-year fixed rate ISAs on our chart, which is regularly updated to show the latest top rates.

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Browse Fixed Rate ISA Terms

Best ISA Rates - 3 Year Fixed

We found 24 PRODUCTS in total, of which 3 are EASY TO OPEN

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  • UBL UK 3 Year Fixed Rate Cash ISA
    AER
    4.31%
    Account Type
    Cash ISA
    Term
    3 Year Bond
    Interest Paid
    On Maturity
    Further Options ˅
    Go To Provider's Site
    AER
    4.31%
    Account Type
    Cash ISA
    Term
    3 Year Bond
    Interest Paid
    Anniversary
    Go To Provider's Site
    AER
    4.31%
    Account Type
    Cash ISA
    Term
    3 Year Bond
    Interest Paid
    Quarterly
    Go To Provider's Site
    AER
    4.31%
    Account Type
    Cash ISA
    Term
    3 Year Bond
    Interest Paid
    Monthly
    Go To Provider's Site
  • United Trust Bank Cash ISA 3 Year Bond
    AER
    4.25%
    Account Type
    Cash ISA
    Term
    3 Year Bond
    Interest Paid
    Anniversary
    Go To Provider's Site
  • Aldermore 3 Year Fixed Rate Cash ISA
    AER
    4.05%
    Account Type
    Cash ISA
    Term
    3 Year Bond
    Interest Paid
    Anniversary
    Further Options ˅
    Go To Provider's Site
    AER
    4.05%
    Account Type
    Cash ISA
    Term
    3 Year Bond
    Interest Paid
    Monthly
    Go To Provider's Site
  • Shawbrook Bank 3 Year Fixed Rate Cash ISA Bond Issue 58
    AER
    3.69%
    Account Type
    Cash ISA
    Term
    3 Year Bond
    Interest Paid
    Anniversary
    Further Options ˅
    Go To Provider's Site
    AER
    3.69%
    Account Type
    Cash ISA
    Term
    3 Year Bond
    Interest Paid
    Monthly
    Go To Provider's Site
  • Paragon Bank 3 Year Fixed Rate Cash ISA
    AER
    3.65%
    Account Type
    Cash ISA
    Term
    3 Year Bond
    Interest Paid
    Anniversary
    Further Options ˅
    Go To Provider's Site
    AER
    3.65%
    Account Type
    Cash ISA
    Term
    3 Year Bond
    Interest Paid
    Monthly
    Go To Provider's Site
  • OakNorth Bank Fixed Rate Cash ISA
    AER
    3.30%
    Account Type
    Cash ISA
    Term
    36 Month Bond
    Interest Paid
    Monthly
    Go To Provider's Site
  • Cynergy Bank Fixed Rate Cash ISA
    AER
    4.25%
    Account Type
    Cash ISA
    Term
    3 Year Bond
    Interest Paid
    Anniversary
  • State Bank of India 3 Year Cash ISA Fixed Deposit
    AER
    4.25%
    Account Type
    Cash ISA
    Term
    3 Year Bond
    Interest Paid
    On Maturity (Compounded Annually)
  • Hodge Bank 3 Year Fixed Rate Cash ISA
    AER
    4.21%
    Account Type
    Cash ISA
    Term
    3 Year Bond
    Interest Paid
    Anniversary
    Further Options ˅
    AER
    4.21%
    Account Type
    Cash ISA
    Term
    3 Year Bond
    Interest Paid
    Monthly
  • Beehive Money 3 Year Fixed Rate Cash ISA 6
    AER
    4.11%
    Account Type
    Cash ISA
    Term
    30.11.27
    Interest Paid
    Yearly
Depositor Protection

Eligible deposits with UK institutions are protected by the Financial Services Compensation Scheme (FSCS) up to a maximum level of protection of £85,000 per person per institution. All new savings or bank accounts provided to UK customers are now covered by the FSCS.

Disclaimer

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

Provider Links

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Three-year fixed rate cash ISAs explained

When you put money in a three-year fixed rate cash ISA, you receive a guaranteed rate of interest for the three-year term. You may be able to choose to have interest paid monthly, annually or on maturity, for example.

Depending on the provider, the minimum initial deposit required could range from £1 to £10,000, with some ISAs allowing you to add to your savings for a limited period after opening. However, other providers may not allow further contributions after the initial deposit.

Because the rate is fixed for three years, you won’t be able to access your money during this period without incurring a penalty. If you do want to withdraw your money or transfer to another ISA, this penalty will usually be a loss of interest.

After three years, the provider should contact you with more information on what will happen to your account. Unless you choose a different option, many providers will simply move your money into a standard variable ISA.

As is the case with any ISA, the ISA allowance means you can only deposit up to £20,000 across one or more ISAs each tax-year. However, the interest you earn is exempt from tax.

Pros and cons of three-year ISAs

  • They pay a fixed rate of interest for three years.
  • You don’t need to pay tax on the interest you earn.
  • There’ll be a penalty if you want to withdraw money from your three-year ISA or transfer it to another provider before the end of the term.
  • You may be able to find better rates on shorter-term ISAs.
  • They won’t be ideal if you want to regularly add to your account.

Should I consider fixing for a longer or shorter term?

It’s up to you whether you fix for three years or if you choose a shorter- or longer-term option.

You may want to fix for a shorter-term if you don’t want to lock away access to your money for as long as three years. Also, one-year ISAs and two-year ISAs may pay a higher rate than three-year ISAs which could make them a more attractive option.

However, if you’re concerned that interest rates may fall and you can afford to lock your money away for longer, a four- or five-year ISA may be worth considering as these accounts will pay a guaranteed rate of interest for a longer period.

But it’s worth bearing in mind that, if interest rates rise, you won’t be able to benefit from the higher rates if your money is put away in a long-term fixed ISA (unless you decide the penalty charge is worth incurring to withdraw your money early).

Alternatives to three-year ISAs

As discussed above, you could consider opening a fixed ISA with a shorter or longer term, depending on your preferences.

Alternatively, if you want the option to add to or withdraw from your savings, you could consider an easy access ISA or a notice ISA.

You may also choose to put your money into a standard savings account, instead of an ISA, if you’re not at risk of breaching your Personal Savings Allowance (PSA). Savings accounts typically pay a higher rate of interest than ISAs, but bear in mind that you need to pay tax on your interest if you earn more than your PSA.

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Rhiannon Philps

Content Writer

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