Fixed Rate Cash ISA

  • Pay no tax on the interest you earn

Fixed Rate Cash ISA is provided by OneFamily, savings in Post Office Money® Cash ISAs are deposited with Bank of Ireland UK

Fixed Rate Cash ISA Rates

1 year at 0.95% 
tax-free/AER fixed

Our Fixed Rate Cash ISA may be right for you if you want:

  • A fixed interest rate and have a minimum of £500 to invest
  • No access to your savings until the end of the agreed fixed term
  • To make use of your ISA allowance and earn tax-free interest

Our Fixed Rate Cash ISA may not be right for you if you:

  • Have already invested your full ISA allowance of £15,240 for the current tax year in a stocks and shares or innovative finance ISA
     
  • Want to add to your savings on a regular basis
     
  • Want to be able to access your savings whenever you need them
     

Please note: The tax advantages of ISAs depend on your individual circumstances and the tax treatment of ISAs may change in the future.

Fixed Rate Cash ISA Interest rates

1 year at 0.95% tax-free/AER fixed

Interest is calculated daily and paid annually on the anniversary of the account opening. After the end of the fixed rate term, interest is paid annually in March.

For help with product information and key terms used, please see the 'Important information' section below.

Important information

How it works

Our Fixed Rate ISA is designed to give you a fixed rate of interest for a chosen period.

In order to open an account, you can either;

  • Open with a single deposit from £500 to £15,240 (subject to any stocks and shares or innovative finance ISA contributions). If you invest in a cash ISA it will reduce the amount that can be invested in a stocks and shares ISA. You can't make any additional deposits, so, if your deposit is less than the maximum you are allowed to pay in, you will lose the rest of your cash allowance for the tax year. Or;
  • Transfer an ISA with another provider - there is no upper limit to the value of ISAs you can transfer but it must be at least £500. Before making a decision to transfer your ISA to us, you should check whether your current provider will charge a fee.

Before you apply

Please make sure you're eligible by checking the below information:

  • You're a UK resident for tax purposes and aged 16 or over
  • The minimum deposit must be at least £500
  • You have not already paid into a cash ISA this tax year
     

What you need to apply

  • Your home address including postcode (we don't accept c/o or PO box addresses)
  • Your National Insurance Number
  • Your debit card, if you want to open your Fixed Rate Cash ISA using this method
  • Details of your existing Post Office Money account if you want to use this money to open your ISA
     

If you're aged 16 - 18, you'll need to verify your name - call us on 0800 169 7500 for a list of acceptable ID.

Managing your account

You can obtain the current value and any other details about your account by calling or writing to us.

Definitions

AER:AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.

Variable: A variable rate of interest can go up or down throughout the lifetime of a savings account

Fixed: A fixed rate of interest remains the same and doesn't change for the duration of the term.

Prevailing rate: The current rate of interest.

Tax-free: Tax-free means the interest paid will be free from UK Income Tax and Capital Gains Tax. The tax advantages depend on your individual circumstances and the tax treatment of your ISA may change in the future.

Tax efficient: Return will be free of UK Income Tax and Capital Gains Tax.

Nominated AccountA Nominated Account is a current account that we link to your savings account so that you can transfer money between accounts safely and securely whenever you like. It should be a UK personal bank or building society account in your name(s) that accepts Direct Debits / Direct Credits.

Breakage charge: A charge applied if you close or transfer your account, or your account or any deposits are voided, within the fixed rate term.

0345: Calls to 0345 numbers will cost no more than calling a standard geographic number starting with 01 or 02 from your fixed line or mobile and may be included in your call package dependent on your service provider. Calls may be monitored or recorded for training and compliance purposes.

0800: All calls to 0800 numbers are free of charge whether made from a landline or mobile phone. Calls may be monitored or recorded for training and compliance purposes.

FAQs

There are three types of ISA - cash ISAs (which can have a fixed or variable interest rate), stocks and shares ISAs (where your money is usually invested in stocks and shares) and innovative finance ISAs (where you earn interest on peer-to-peer lending platforms).

You can invest up to £15,240 in a cash ISA this year (that's from 6th April to 5th April), subject to any stocks and shares or innovative finance ISA contributions. For example – if you invest £6,240 in a cash ISA with one provider, you can invest the remaining £9,000 ISA allowance in a stocks and shares ISA with the same or another provider. You can only invest in one cash ISA, one stocks and shares ISA and one innovative finance ISA in each tax year.

The sooner you invest in an ISA, the sooner you'll start making use of your tax-free benefits. To take advantage of this year's ISA allowance you can open an account whenever you want. However, you must use it by 5th April each year or you will lose your allowance for that tax year.

For more information about how savings in the Fixed Rate Cash ISA are protected, please read the Deposit Information Sheet. This sets out details of how your money is protected with Bank of Ireland UK, who is the `deposit taker' for the Fixed Rate Cash ISA.

If you make payments directly to us, we will initially pay these into an account held with NatWest. We will then transfer this money to Bank of Ireland UK. This is also what happens if we receive a transfer cheque from another ISA provider. Please note that any money you hold in other accounts with NatWest will count towards compensation limits.

You can find out more about how your money is protected when it's held in a bank or building society account by going to the "What we cover" section of the FSCS website.

Further information about compensation arrangement is also available at http://www.postoffice.co.uk/your-savings-are-protected

Anyone over the age of 16 years who is a UK resident can open a Fixed Rate Cash ISA with a lump sum investment minimum of £500 and maximum of £15,240 deposit (subject to any stocks and shares or innovative finance ISA contributions). Alternatively transfers-in from an ISA held with another provider (minimum £500) are accepted. Before making a decision to transfer your ISA to us you should check if your current provider will charge a fee.

We can open an account as soon as we receive a valid application and your initial payment. To do this, we need to confirm your identity and address. Some customers may be required to provide further evidence and in these cases we will write to you.

Please note, interest is payable on your Fixed Rate Cash ISA once your account has been opened and your initial payment has been accepted.

You can currently invest up to £15,240 between a cash ISA, a stocks and shares ISA or innovative finance ISA this tax year (that's the period from 6th April to 5th April). You can only invest in one cash ISA, one stocks and shares ISA and one innovative finance ISA in each tax year.

The interest earned in the Fixed Rate Cash ISA is tax -free

The tax advantages of ISAs depend on your individual circumstances and the tax treatment may change in the future.

Interest is calculated daily. During the fixed rate term, interest is calculated daily and paid annually on the anniversary of the account opening. After the end of the fixed rate term, the interest is paid annually in March.

For more details, call 0800 169 7500.

What the end of the fixed rate term, your savings will earn a standard variable interest rate, which is paid annually in March.

There is no charge to set up the Fixed Rate Cash ISA. A Breakage Charge will be applied if you close or transfer the ISA within the fixed rate term. If you select a 1 year term or shorter, the Breakage Charge will equal 90 days loss of interest, or if you select longer than 1 year but shorter than 5 years, then 180 days loss of interest will be incurred. 5 years or more will incur 365 days loss of interest.

This means that if you close or transfer your Fixed Rate Cash ISA in the fixed term, the amount returned to you, or sent to your new provider, could be less than you paid in.

There may also be a charge of £5 for cancelling and reissuing cheques or issuing duplicate statements.

You can transfer your Fixed Rate Cash ISA in full to either another cash ISA or another stocks and shares ISA.

To arrange for the transfer, you will need to contact the new provider.

A Breakage Charge will be applied if you transfer your account within the fixed rate term. If you select a 1 year term or shorter the Charge will be equal 90 days loss of interest, or if you select longer than 1 year but shorter than 5 years, then 180 days loss of interest will be incurred. 5 years or more will incur 365 days loss of interest. If the interest you've earned doesn't cover this, you may get back less than you paid in.

To close your account please call or write to us. When you ask us to repay your money, you can choose to have the funds paid either by cheque or direct to your nominated account.

A Breakage Charge will be applied if you close your account within the fixed rate term. If you select a 1 year term or shorter the Charge will be equal 90 days loss of interest, or if you select longer than 1 year but shorter than 5 years, then 180 days loss of interest will be incurred. 5 years or more will incur 365 days loss of interest. If the interest you've earned doesn't cover this, you may get back less than you paid in.

If you have a complaint, we want to know. In the first instance you should contact the Customer Service Centre on 0345 602 3409 or write to us at:

FREEPOST
Post Office Money Customer Care
PO BOX 3191
BS1 9HY Bristol

We will aim to provide you with a full response within four weeks of the date we receive your complaint and our response will be our final decision based on the evidence presented. If for any reason there is a delay in completing our investigations, we will explain why and tell you when we hope to reach a decision.

In any event, should you remain dissatisfied or fail to receive a final answer within eight weeks of us receiving your complaint, you may have the right to refer your complaint to an independent authority for consideration. That authority is the Financial Ombudsman Service (FOS) at:

Financial Ombudsman Service
Exchange Tower
Harbour Exchange Square
E14 9SR London

Telephone: 0800 0234 567 or 0300 1239 123
Email: complaint.info@financial-ombudsman.org.uk
Website: www.financial-ombudsman.org.ukopens in new window

Please note that if you wish to refer this matter to the FOS you must do so within 6 months of our final decision. You must have completed the above procedure before the FOS will consider your case.

Summary box and how to apply

Apply for a Fixed Rate Cash ISA

Summary Box
Key product information for our Fixed Rate Cash ISA 

Account name

Post Office Money Fixed Rate Cash ISA 1 Year (Issue 20)
What is the interest rate? Fixed Rate Cash ISA interest rate 0.95% tax-free / AER Fixed
Current variable interest rate - paid after maturity 0.25% tax-free / AER Variable
Interest is calculated daily and paid at the end of the fixed term and then annually in March.
Can Bank of Ireland UK change the interest rate?

The interest rate of your Fixed Rate ISA is fixed until maturity.

At the end of the fixed rate, your ISA will earn a variable interest rate. We have the right to change the variable interest rate. The reasons we may change your rate are outlined in the Interest Section of your Terms and Conditions.

If we change your interest rate to your disadvantage, we will personally notify you not less than 14-days before the change takes effect, as long as you have at least £100 in your account.

What would the estimated balance be on a £1,000 deposit? After 12 months £1009.50
After 24 months N/A
After 36 months N/A

This projection is provided for illustrative purposes only and does not take into account a customer's individual circumstances.

This assumption is based on a £1,000 deposit with no further deposits or withdrawals during the fixed term of the projection.

How do I open and manage my account?

Eligibility

  • You must be age 16 or over and a UK resident for tax purposes
  • ISAs cannot be applied for in joint names
  • You haven't made deposits into another Cash ISA in this tax year
 

Opening and managing your account

  • You can apply for an account in branch, by post or online - or you can ring us and request an application pack

  • Minimum balance to open the account - £500

  • Open with a single deposit up to £15,240 this tax year (subject to any stocks and shares or innovate ISA contributions) or transfer-in an existing ISA (no further deposits or transfers are permitted during the fixed term)

  • You can manage your account by phone or by writing to us

As Fixed Rate Cash ISA is a fixed term product you will not be able to switch to another product until
the end of the fixed term. If you wish to switch into this ISA, please apply in a Post Office branch.

Can I withdraw money?

Fixed Rate Term

  • Withdrawals are not allowed during the fixed rate term.  If you need do access your money, you'll need to transfer to another provider or close your account.  
  • Early closure or transfer is subject to a breakage charge, as outlined in the Charges and taxes section of the Terms and Conditions. If the interest you've earned doesn't cover this, you may get back less than you paid in.

Standard Variable Rate

  • You can make a withdrawal by calling us or writing to us.
  • The minimum withdrawal is £10 or the value of your ISA whichever is less.
  • We'll either send you a cheque or pay your money into a bank or building society account you have previously nominated.
  • You cannot withdraw money over the counter at a Post Office branch.


This ISA does not have flexible features. This means that once withdrawn, your money will lose the tax advantages of ISAs and cannot be replaced within this ISA without affecting your annual ISA allowance.

If you close your ISA, your money will no longer benefit from the tax advantages of ISAs in the future. If you've paid into your Fixed Rate ISA in the same tax year you close it, you won't be able to pay money into another cash ISA in the same tax year.

Additional information

If you would like to cancel, you can do so within 14 days from the date your Fixed Rate Cash ISA is opened by writing to us. You will not have to pay a breakage charge if you cancel your account within the 14-day cancellation period.

Tax Free. Interest is paid gross. The tax advantages of cash ISAs depend on your individual circumstance and the tax treatment may change in the future.

Before making a decision to transfer an existing ISA to us, you should check if your current provider will charge a fee.

 

Download the application, fill it in and  pop in the post

Small print

Information correct as at 29th July 2016

OneFamily is a trading name of Family Investment Management Limited and Family Equity Plan Limited, which are authorised and regulated by the Financial Conduct Authority. Registered in England and Wales. Registered numbers 1915516 and 2208249 respectively. Registered office: 16 - 17 West Street, Brighton, BN1 2RL.

Bank of Ireland UK is a trading name of Bank of Ireland (UK) plc which is registered in England and Wales. Registered number 07022885. Registered Office: Bow Bells House, 1 Bread Street, London, EC4M 9BE.

Post Office Limited is registered in England and Wales. Registered number 2154540. Registered Office: Finsbury Dials, 20 Finsbury Street, London, EC2Y 9AQ. Post Office Money and the Post Office Money logo are registered trademarks of Post Office Limited.

The above details can be checked on the Financial Services Register by visiting the Financial Conduct Authority website.