Fixed Rate Cash ISA

What is a Fixed Rate Cash ISA?

An Individual Savings Account (ISA) is a type of savings account introduced by the government to encourage more people to save their money. They are an efficient and secure way to save anything from a few pounds a month to up to £20,000 per year.

A Fixed Rate Cash ISA is a type of tax-free savings account. Fixed Rate means that the interest rate is set for an agreed period of time when you open the account. This is known as the term. The term of the account will usually range from 1 to 5 years. Most Fixed Rate Cash ISAs don’t allow you to withdraw money from them during this time.

Make the most of your savings

Our Fixed Rate Cash ISA offers you a fixed rate of interest for 1 - 5 years, so you can enjoy the peace of mind of knowing exactly what return you'll get on your money.

Key benefits

• A fixed interest rate for 1 - 5 years
• Deposit between £5,000 and £2,000,000 within 30 days of opening your account
• Tax free savings

Additional benefits

• Manage your account 24/7 with online banking
• Apply in minutes

Current products available

These rates are subject to change and may be withdrawn at any time. Rates effective from 17th April 2024.

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

We must receive your full deposit within 30 days of opening your account. We can't accept any deposits after 30 days.

Can I withdraw money?

This product is designed to hold your money for the full term and only release the funds on 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:

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.

Apply for your savings account now

It's quick and easy to apply for a Sainsbury's Bank Fixed Rate Cash ISA.

Please note, to set up an account you need to be:

• a UK resident; and
• 18 years old or over.

The tax treatment or rate of interest payable depends on the individual circumstances of each customer and may be subject to change in the future.

Next steps

Once your account is opened you can deposit into your Fixed Rate Cash ISA:

• Transfer funds from another cash ISA using our transfer in form
• Transfer money from your current bank account
• Send us a cheque, made payable to yourself, to Sainsbury's Bank, PO Box 4954, Worthing, BN11 9YY
• Transfer funds direct from your existing Sainsbury's Bank savings account

ISA savings in one place by transferring in any of your existing ISAs

With a Sainsbury's Bank Fixed Rate Cash ISA you can keep your ISA savings in one place by transferring in any of your existing ISAs - ask about our ISA transfer service or complete our transfer in form (PDF 127KB).

This way you can enjoy an attractive rate on all your balances and the convenience of having your ISA savings in one place by transferring in any of your existing ISAs. And remember, when you transfer an ISA from another provider, this won't affect your annual ISA allowance. (We can’t accept APS transfers, but if you want to transfer in from a Cash ISA, a Stocks and Shares ISA, or an Innovative Finance ISA to our Cash ISA please complete the Transfer In form, please do not transfer the funds yourself).

Take advantage of the 2024/25 £20,000 tax-free limit

Once your Sainsbury's Bank Fixed Rate Cash ISA is open you can deposit the full £20,000 annual allowance. Please remember that you only have 30 days to fund your account. If your account is not funded after 30 days, your account will convert to a Reserve Cash ISA.  An ISA can only be held by an individual, not in joint names.

Charges for early closure if you need your money

You can withdraw money from your Fixed Rate Cash ISA without notice before the maturity date but you will incur an early closure charge. If you have not earned enough interest to cover the early closure charge then 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. You can only withdraw the full balance of your account, partial withdrawals are not permitted. Also, remember that if you’ve paid in your full ISA allowance any amount you withdraw can’t be replaced in the same tax year.

How is your interest paid?

Interest is calculated daily and paid on the anniversary of account opening (or the next business day if this date falls on a weekend). You will have the option of having interest paid into your Fixed Rate Cash ISA, or paid away to a nominated account.

What happens at maturity?

We’ll write to you 14 days before your Fixed Rate Cash ISA is due to mature and ask you what you'd like us to do with your money. You'll be able to open another Sainsbury's Bank savings account and have your funds paid into this new account, or we can transfer your money to an account held with another provider. Please remember, if you withdraw your money and do not transfer it to another ISA account, your money will lose its tax free status.

If we do not hear from you by the maturity date we will automatically transfer your balance into our Reserve Cash ISA, and we will let you know the interest rate on this account.

Easy to manage

You can check your balance and transactions using the Online Banking service or by contacting us.

Protection against money laundering

Before your account is fully active we'll need to verify your identity. This is to comply with money laundering regulations. In most cases we can do this electronically but we may need you to provide some documents to help us.

It takes minutes to apply for a Sainsbury's Bank Fixed Rate ISA

You're eligible to apply if you:

• Are resident in the UK
• Are 18 years of age or older

To apply you will need the following information:

• Personal details - date of birth, address, nationality, email address, occupation and NI number

Apply quickly and easily

• Apply online
• You must fund your Fixed Rate Cash ISA within 30 days of opening it

Have you read the terms & conditions?

Before applying please read our Terms and Conditions and our Privacy Statement.

Sainsbury's Bank Fixed Rate Cash ISA terms and conditions

Please read our Terms and Conditions and our Privacy Statement.

You can download and print the terms and conditions document with Adobe Acrobat Reader - Get Adobe Acrobat Reader

Important Information about your Fixed Rate Cash ISA

1. Your Fixed Rate Cash ISA will be opened on your account opening date.
2. Interest is fixed on the account opening date. Interest starts to accrue once cleared funds are paid into your Fixed Rate Cash ISA until the end of the term. If you make your deposit into the account after the account opening date, you will receive interest from the date of deposit until the end of the term and not from account opening date. The term over which you actually receive interest may therefore be shorter than the full term of the product.
3. You must fund your account within 30 days of account opening. If you do not fund your Fixed Rate Cash ISA we will close your Fixed Rate Cash ISA after 30 days.
4. 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, this means that the closing balance could be less than the amount you paid into the account.