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Sainsbury's Bank

Fixed Rate Cash ISA - 5 Year Term - Apply

Your online application should only take 10 minutes to complete but there are some important things to know before you start.

Account name

Fixed Rate Cash ISA - 5 year

What is the interest rate?

The Interest Rate (AER) is payable as follows:

Term Balance *AER/tax free
5 years £5,000 - £2,000,000 1.25%

Interest is calculated daily and paid on the anniversary of account opening. You will have the option of having interest paid into your cash Fixed Rate Cash ISA, or paid away to a nominated account.

You can check the interest rate applicable to your account on any day by visiting and logging into your online banking.

Can Sainsbury’s Bank change the interest rate?

Rates are fixed until the maturity date. For further information please refer to condition 5.2 of our Fixed Rate Cash ISA Terms and Conditions.

What would the estimated balance be at the end of 5 years based on a £5,000 deposit?

Annual interest paid into the account:

Term Based on a deposit of Projected return
5 years £5,000 £5,320.41

This example assumes that interest is paid into the Fixed Rate Cash ISA, which means the interest is compounded each year.

Annual interest paid into a nominated account:

Term Based on a deposit of Projected return
5 years £5,000 £5,312.50

This example assumes interest is paid away to a nominated account, which means the interest is not compounded. Please note, because interest is paid away, the projected return above illustrates the total return over the term of the product, and does not represent the final balance in the account.

These examples are based on one lump sum deposit being made on the account opening date, with no further deposits or withdrawals made. These examples are provided as an illustration only and do not take into account individual customers’ circumstances.

How do I open and manage my account?

  • You must be over 18 and a UK resident to open a Sainsbury’s Bank savings account.
  • You can open your Fixed Rate Cash ISA by applying online.
  • You can manage your account via Online Banking or by contacting us.
  • You must invest a minimum of £5,000 within 30 days of account opening to ensure that your account remains open and that you benefit from the advertised rate of interest.
  • The maximum amount that can be held in the account is £2,000,000.
  • No further deposits can be made after the first 30 days of account opening.
  • You can only subscribe up to the ISA allowance in any one tax year. We accept transfers from other ISA providers.

Can I withdraw money?

This product is designed to hold your money for the full term and only release the funds at the maturity date. If you need access to your money before the maturity date you can withdraw the whole balance and close the account. However, you will incur an early closure charge as detailed below. It will not be possible to withdraw only part of the balance.

Details of early closure charge:

Term Early Closure Charge
5 years 270 days interest

If you have not earned enough interest to cover the early closure charge it will be taken from the balance in your account. This means the closing balance could be less than the amount you paid into the account.

If you keep the account open, we'll write to you 14 days before the fixed rate period is due to end and ask you what you'd like us to do with your money. You will be able to open another Sainsbury's Bank savings account and have your funds deposited into this new account, or we will be able to transfer your money to an account held with another provider. If you do not provide us with an instruction, your funds will be transferred to our Reserve Cash ISA, and we will inform you of the interest rate on that account.

Additional information

Crown Employees (Members of the armed forces or a diplomat.) - If you’re a Crown Employee serving overseas (or their civil partner or spouse) and you want to apply for an ISA, please call us on 08085 40 40 60 from within the UK or 0044131 663 3184 if you’re outside the UK.

Interest on your Fixed Rate Cash ISA is tax free. This means your Fixed Rate Cash ISA interest will not count towards your Personal Savings Allowance. Please contact HMRC if you need more information.

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

Tax free is the interest rate payable where interest is exempt from income tax.

What you'll need

Please have the following details to hand before you start your application:

  • Your addresses and postcodes for the last 3 years; and
  • Your National Insurance number and/or Tax Identification Number(s) (for Non UK tax resident).

For help locating your National Insurance number see our Fixed Rate ISA FAQ page.

We want to provide you with the right level of support throughout your application. If there is anything that could affect your ability to understand the application you are making today, please call us on 08085 40 50 60. We'll be able to discuss your needs and offer suitable support.

If required you can ask for your correspondence in another format eg. Braille / Audio. Just contact us after you’ve completed your application and we can do this for you.

Lines are open 8am-7pm Mon-Fri and 8am-6pm Sat-Sun. Telephone calls may be recorded for security purposes and monitored under our quality control procedures. Calls are free from a landline and from a mobile when calling from the UK.

Please note

If you’re an existing customer registered for online banking, you won’t be able to see your new savings account details straight away on your online banking profile. 

Please don’t worry about contacting us regarding your new application, we’ll get this added to your online banking shortly.

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