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

Is this right for you?

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 key terms used, please see the Definitions tab.

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.

Summary Box

Key product information for the Post Office Money

Fixed Rate Cash ISA

Account name Fixed Rate Cash ISA
Interest Rates (AER's) A fixed interest rate is paid for an initial term. The fixed rate or terms on offer can change at any time. The rate you receive will be the fixed rate on offer for the term you select on the date your application is received, or if you apply at a Post Office branch, the date you hand your application in. After the fixed rate term, the interest paid will be variable.

 

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

Current rates can be found on the Interest Rates page

Tax status Tax free
Conditions for bonus payment No bonuses paid
Withdrawal arrangement

During fixed rate term – withdrawals are not permitted during the fixed rate term.

If you need to access your money during the fixed rate term you will have to transfer or close your account.

If you close your ISA your money will not benefit from the tax advantages of ISAs in the future. However, if you do this, you will be charged a Breakage Charge. If you select a 1 year term, the Breakage Charge will equal 90 days loss of interest. If you select a 2 or 3 year term, the Breakage Charge will equal 180 days loss of interest. If the interest you've earned doesn't cover this, you may get back less than you paid in.

After the end of the fixed rate term – a minimum withdrawal amount will apply. This will be £10 or the value of your ISA, whichever is less.

Access

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

Withdrawing money:
You can make a withdrawal after the end of the fixed rate term by calling us or writing to us. We will 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.

The Fixed Rate Cash 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 your account. 

 

For details of the Terms and Conditions that apply to the Fixed Rate Cash ISA, please see the key information pack.

FAQs

Answers to some of your most common questions

What is an ISA?

ISA stands for Individual Savings Account. ISAs were launched by the Government to give people a tax-efficient way to save for the future. There are three types of ISA - cash ISAs (which have a fixed or variable rate), stocks and shares ISAs and innovative finance ISAs.

You can invest up to £15,240 in an ISA in this tax year (that’s the period from 6th April to 5th April) subject to any stocks and shares and 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 or innovative finance 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.

Why invest now?

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. 

Who can open a Fixed Rate Cash ISA?

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.

How long does the application process take?

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.

What is the maximum I can deposit/invest in an ISA?

You can invest up to £15,240 between a cash ISA, a stocks and shares ISA and 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.

Do I pay tax on my savings in an ISA?

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

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

When do I receive my interest on my Fixed Rate Cash ISA?

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.

Our Customer Call Centre is UK based and open from 9am-7pm weekdays and 9am-1pm on Saturdays, closed Sundays and bank holidays.

What will happen at the end of the fixed rate term?

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

Are there any fees or charges?

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, the Breakage Charge will equal 90 days loss of interest, and if you select a 2 or 3 year term it will equal 180 days loss of interest. This means that if you close or transfer your 1 year Fixed Rate Cash ISA in the first 90 days, or your 2 or 3 year Fixed Rate Cash ISA within the first 180 days, 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. 

Can I transfer my ISA to another provider?

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

A Breakage Charge equal to 90 days loss of interest if you select a 1 year term, or 180 days loss of interest if you select a 2 or 3 year term, will be applied, if you close or transfer your account within the fixed rate term. If the interest you’ve earned doesn’t cover this, you may get back less than you paid in.

How do I close my account?

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.

You can transfer your Fixed Rate Cash ISA to another ISA manager at any time. To arrange for the transfer, you will need to contact the new provider.

A Breakage Charge equal to 90 days loss of interest if you select a 1 year term, or 180 days loss of interest if you select a 2 or 3 year term, will be applied, if you close or transfer your account within the fixed rate term. If the interest you’ve earned doesn’t cover this, you may get back less than you paid in.

How do I make a complaint?

If you need to make a complaint, please contact us and we will do everything we can to resolve your complaint as soon as possible, but please allow up to 5 working days for a reply.

Please contact us on 0800 169 7500. Calls to 0800 numbers are normally free from UK landlines and mobile phones. Calls may be monitored or recorded for training and compliance purposes. Our Customer Call Centre is UK based and open from 9am-7pm weekdays and 9am-1pm on Saturdays. Alternatively, you can write to us at:

Post Office Money Savings
PO Box 5179,
Brighton,
BN50 9UY

When we first write to you, a summary of the procedures used when resolving your complaint will be sent to you. A copy of these procedures is also available on request.

If you are not satisfied with the response you have received, the Financial Ombudsman Service may be able to help. They are independent and can help resolve disputes between firms and their customers.
You can contact them by writing to:

The Financial Ombudsman Service
Exchange Tower
London
E14 9SR

Phone: 0300 123 9123

Email: complaint.info@financial-ombudsman.org.uk

Website: www.financial-ombudsman.org.uk

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. Open from 9am -7pm weekdays and 9am -1pm on Saturdays.


0345: Calls cost no more than calls to geographic numbers (01 or 02). Calls from landlines and mobiles are included in free call packages

 

Definitions

Definitions

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.

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

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. 

ISA: An ISA is an Individual Savings Account. They are a tax-efficient way to save money as you pay no tax on the money you put into an ISA or the interest you earn. There are three types of ISA - cash ISAs  (which have a fixed or variable rate), stocks and shares ISAs and innovative finance ISAs. You can invest up to £15,240 between a cash ISA, a stocks and shares ISA and an 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 and one innovative finance ISA in each tax year.

0800: Calls to 0800 numbers are normally free from UK landlines and mobile phones. Calls may be monitored or recorded for training and compliance purposes.

0345: Calls cost no more than calls to geographic numbers (01 or 02). Calls from landlines and mobiles are included in free call packages.

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

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

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

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

Start the application online, print and post it to us (you'll need your National Insurance number).

Other Post Office Money ISAs you might be interested in

Post Office Money® ISAs are provided by OneFamily. Savings in Post Office Money cash ISAs are deposited with Bank of Ireland UK.

Online ISA

Key features:

  • Choose as many variable or fixed rates as you like
  • Access online 24/7

FIND OUT MORE

Premier Cash ISA

Key features:

  • Up to 2 withdrawals per year
  • Tax-free savings from just £100

FIND OUT MORE

Small print

Information correct as at 29th July 2016

About OneFamily

OneFamily is a trading name of Family Investment Management Limited (Co. No. 1915516) and Family Equity Plan Limited (Co. No. 2208249), which are authorised and regulated by the Financial Conduct Authority. Registered in England and Wales at 16-17 West Street, Brighton, BN1 2RL, United Kingdom.

About Post Office

Bank of Ireland UK is a trading name of Bank of Ireland (UK) plc which is registered in England and Wales (No. 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.