expanded Summary box

Make the most of your savings

Our Fixed Rate Cash ISA offers you a fixed rate of interest for 2 - 5 years, so you can enjoy the peace of mind of knowing exactly what return you'll get on your money.

Summary box

Account name

Fixed Rate Cash ISA

What are the interest rates?

The Interest Rate (AER) is payable as follows:

Term Balance *AER/tax free
2 years £5,000 - £2,000,000
1.65%
3 years £5,000 - £2,000,000
1.75%
4 years £5,000 - £2,000,000
1.90%
5 years £5,000 - £2,000,000
2.00%

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.

You can check the interest rate applicable to your account on any day by visiting sainsburysbank.co.uk 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 4.2 of our Fixed Rate Cash ISA Terms and Conditions.

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

Annual interest paid into the account:

Term Based on a deposit of Projected return
2 years £5,000 £5,166.36
3 years £5,000 £5,267.12
4 years £5,000
£5,390.97
5 years £5,000
£5,520.40

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
2 years £5,000 £5,165.00
3 years £5,000 £5,262.50
4 years £5,000
£5,380.00
5 years £5,000
£5,500.00

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 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 and manage your Fixed Rate Cash ISA online at sainsburysbank.co.uk or by calling 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 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:

Fixed Rate ISA term Early Closure Charge
2 years 150 days interest
3 years 210 days interest
4 years 240 days interest
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

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.

Financial Services Compensation Scheme

All of our savings products are covered by the Financial Services Compensation Scheme(FSCS). For further information about the compensation provided by the FSCS visit www.fscs.org.uk new window

Protecting your money - A guide from the FSCS (PDF, 1.71Mb,) new window

Important Information

Savings accounts are available from Sainsbury’s Bank to UK residents aged 18 years old or over. Sainsbury’s Bank reserves the right to alter rates at any time.

AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if paid and compounded once each year. Tax free is the interest rate payable where interest is exempt from income tax.

The tax treatment of savings interest changed from 6 April 2016. Find out more.

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

Key benefits

Key benefits

  • A fixed interest rate for 2 - 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

Length of Term For balances between AER/tax free
2 years £5,000 -
£2,000,000
1.65%
3 years £5,000 -
£2,000,000
1.75%
4 years £5,000 -
£2,000,000
1.90%
5 years £5,000 -
£2,000,000
2.00%

These rates are subject to change and may be withdrawn at any time. Rates effective from 18 May 2018.

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:

Fixed Rate ISA term Early Closure Charge
2 years 150 days interest
3 years 210 days interest
4 years 240 days interest
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.

Apply for your savings account now

It's quick and easy to apply for a Sainsbury's 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.

Financial Services Compensation Scheme

All of our savings products are covered by the Financial Services Compensation Scheme(FSCS). For further information about the compensation provided by the FSCS visit www.fscs.org.uk new window

Protecting your money - A guide from the FSCS (PDF, 1.71Mb,) new window

Important Information

Savings accounts are available from Sainsbury’s Bank to UK residents aged 18 years old or over. Sainsbury’s Bank reserves the right to alter rates at any time.

AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if paid and compounded once each year. Tax free is the interest rate payable where interest is exempt from income tax.

The tax treatment of savings interest changed from 6 April 2016. Find out more.

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

Find out more

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

With a Sainsbury's 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 2018/19 £20,000 tax-free limit

Once your Sainsbury's 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. You can only subscribe to one Cash ISA account during any one tax year. 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 use our secure Telephone service or Online Banking service to check your balance and transactions.

Phone 08085 40 50 60 *
Lines are open: Monday to Friday, 8am – 10pm
Saturday and Sunday, 8am – 6pm

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.

*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.

Apply now

Before you apply

  • You must be over 18 and a UK resident.
  • Make sure you have your personal details to hand.
  • Make sure you have your nominated account and sort code details.
  • Please read our Terms and Conditions.
  • Please also see the Key Features and our Privacy Statement.

Apply quickly and easily

  • Apply online or by calling us on 0800 917 5081 *
  • You must fund your Fixed Rate Cash ISA within 30 days of opening it

Ts and Cs

Sainsbury's 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.