We currently offer two fixed rate savings products – the 1 Year Fixed Rate ISA and the 1 Year Fixed Rate. Both offer a fixed interest rate in exchange for locking your savings away for a 1 year fixed term, however there are a few differences between the two:
The 1 Year Fixed Rate ISA is powered by Aldermore and is an ISA, which means you can pay in up to £20,000 per tax year, and your savings are tax-free. You can only open one 1 Year Fixed Rate ISA and money you pay in is stored in Vaults – each Vault has its own 1 year fixed term. The 1 Year Fixed Rate ISA also offers a few more options for paying in, such as transferring in an existing ISA.
The 1 Year Fixed Rate is a savings account, rather than an ISA, so doesn’t have the same tax benefits and payments don’t count towards your ISA allowance. There’s no annual contribution limit, but you cannot pay in more than £120,000 in total. You can open as many 1 Year Fixed Rates as you’d like, and each one has its own 1 year fixed term.