How to choose a fixed rate cash ISA
Consider these features when you compare fixed rate cash ISAs.
The interest rate
Maximising your returns is obviously your main aim with any savings account. The best rates are typically reserved for longer-term ISAs, but you can still get a good rate by comparing rates from different providers.
The term
Currently, longer terms have lower interest rates as you are locking in a competitive interest rate for longer. It's also important to be aware of the downfalls of long-term ISAs. For instance, while you may be able to lock in a good rate now, if rates rise further, you might lose out. If you think you may need access to your money at some point, you should also opt for something that offers more flexibility.
Access
Most savings accounts are about balancing the interest rate you get with the access you need. Think carefully about whether you'll need to withdraw any of your money, as fixed rate ISAs lock your money away for the entire term and withdrawing early can be costly.
