Is my money safe in a fixed rate ISA?

As with standard savings accounts, the money you deposit in a fixed rate cash ISA is protected by the Financial Services Compensation Scheme (FSCS) . This scheme covers up to £85,000 of your deposits with a particular provider should it go bust, for example. Bear in mind that this limit applies to the total amount you have saved with a provider (not just ISA deposits) and applies across deposits with multiple providers if they share a banking licence. See more on which providers share an FSCS limit .

Can I combine a fixed rate ISA with other types of ISAs?

It’s possible to combine multiple ISA pots if you want your funds in one place. You can transfer funds between ISAs without affecting your ISA allowance so, once a fixed rate ISA matures, you can move the money into a different ISA. When moving funds between ISAs, make sure you follow the ISA transfer process to protect your tax-free benefits.

Can I transfer my fixed rate ISA to someone else?

No, you can’t transfer a fixed rate ISA, or any other type of ISA, to another individual. If you want to give someone the money in your ISA, you’ll need to withdraw it from the ISA and put it into a standard savings account. You can then choose to send the money to someone else.

Can I open a fixed rate ISA for my child?

You can only open a fixed rate ISA if you are over 18 years old. However, parents and guardians can open a Junior ISA (JISA) on behalf of a child, who will only be able to withdraw money from the account once they turn 18.

Can I have a fixed rate ISA if I’m not a UK resident?

No. You can only open a fixed rate ISA, or any type of ISA, if you are a UK resident.

Can you have a fixed rate ISA in a foreign currency?

No, you can’t hold foreign currency in an ISA. You can only deposit pounds sterling into any ISA.

Do ISAs affect eligibility for Universal Credit or other state benefits?

The money you have saved in an ISA could affect your entitlement to Universal Credit and other benefits. Your savings are one of the factors that are taken into account when determining your eligibility for benefits and how much you may receive.

What happens if I go over my ISA allowance?

Providers may automatically prevent you from depositing more than your annual £20,000 ISA allowance with them. However, if you do accidentally deposit more than £20,000 in ISAs in a single tax-year because you lost track of how much you deposited across different accounts, for example, you should contact HMRC as soon as possible. They will tell you what to do next.

Are fixed rate ISAs suitable for retirement savings?

Fixed rate ISAs can be a suitable, low-risk option for retirement savings, particularly as you won’t need to pay tax on the interest earned. They can form part of a larger retirement strategy that may include pensions , investments and other savings products .

Can fixed rate ISAs be a part of a larger investment strategy?

Fixed rate ISAs are low-risk and offer a guaranteed return on your money. As a result, they could form part of a wider savings and investment strategy, alongside riskier investments, such as stocks, for example.

Best Fixed Rate Cash ISAs | Rates up to 4.52%

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