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Two Year Fixed Rate Cash ISA


At a glance

  • 1.10% tax free/AER on balances of £40,000+, 1.00% tax free/AER on balances of £1 - £39,999
  • Open an account with just £3,000, interest is paid at a fixed rate for 2 years on balances over £1
  • Interest is paid yearly or monthly (may be at a lower tax free rate)
  • Pay in more during the life of the account, up to your yearly ISA limit

About the Two Year Fixed Rate Cash ISA

Make the most out of your tax-free savings by moving your money to our Two Year Fixed Rate Cash ISA savings account. You’ll get a fixed interest rate for 2 years, so you know exactly how much you’ll earn. It’s easy to open, and because it’s a cash ISA you won’t pay any income tax on your interest.

Benefit from continued growth – at the end of the 2 year fixed rate period, your account automatically changes to an Instant Cash ISA, currently paying 0.25% tax free/AER variable on all balances.

You can transfer your existing ISA to us using our online ISA transfer form. We may keep you informed of progress of your transfer by SMS text.

You can access your money during the term of the account, but you will have to pay a withdrawal charge on any amount you take out. So you may get back less than you originally deposited.

You have a 14 days cancellation period during which you can cancel the account. If you cancel during this period you will still be able to subscribe to another cash ISA in the same tax year. See the Important Information section for full details.

Fixed Rate Cash ISA - 2 Year

Balance

Annual Interest

Monthly Interest

AER/Tax-free (fixed) %
Gross/Tax-free (fixed) %
AER/Tax-free (fixed) %
Gross/Tax-free (fixed) %
£40,000+
1.10
1.10
1.10
1.09
£1 - £39,999
1.00
1.00
1.00
1.00

These interest rates are correct as at 08/12/2015.

These rates are fixed on account opening. We may change the rate so please check before opening.

Account features

  • Manage your account through Internet Banking, PhoneBank® or in branch
  • At the end of the 2 year fixed rate period, your account will automatically change to an Instant Cash ISA, currently paying 0.25% tax free/AER variable
  • Interest is calculated on a daily basis and is paid either monthly or annually from the date of the account opening, and when the account matures.
  • You’ll earn interest on balances of more than £1

Good to know

  • You can withdraw money within the 2 year fixed period, but you will need to pay a withdrawal charge
  • The overall amount you can save in an ISA each tax year is limited, so paying into a cash ISA will reduce the amount you can invest in a stocks and shares ISA. You can find out more at your local Lloyds Bank branch.
  • You can’t save more than £15,240 in this tax year, even if you make a withdrawal. For example, if you save £15,240 then take out £500, you can’t make another deposit until the next tax year.

Withdrawal charges

No notice period. We don’t encourage withdrawals on this account. Though they are possible, any withdrawals within the fixed period are subject to a charge the equivalent of 180 days tax free interest on the amount withdrawn. This means you might get back less than you originally deposited.

Account name Two Year Fixed Rate Cash ISA
Interest rates (AERs) Fixed interest rate. Interest is calculated daily and paid monthly or annually, depending on choice at account opening and on maturity. After the fixed rate period your account automatically changes to an Instant Cash ISA.

Fixed Rate Cash ISA interest rates.
Tax status Tax free. Tax treatment depends on your individual circumstances and may change.
Conditions for bonus payment Not applicable
Withdrawal arrangements No notice period. We don’t encourage withdrawals on this account. Though they are possible, any withdrawals within the fixed period are subject to a charge the equivalent of 180 days tax free interest on the amount withdrawn. This means you might get back less than you originally deposited.

The yearly ISA allowance applies, which means the maximum you can pay into a cash ISA is £15,240 in the 2015/2016 tax year. Once you've reached this limit, if you make a withdrawal it cannot be replaced in the same tax year.
Access Web, phone and branch.

Want to transfer an existing ISA to us?

If you would like to transfer an existing ISA from another provider, transfer in a few easy steps using Internet Banking. If you do not already have a Lloyds Bank cash ISA, please open one before requesting a transfer.

You can apply for a 2 Year Fixed Rate Cash ISA saver if you are:

  • 16 or over
  • Resident and ordinarily resident in the UK for tax purposes
Apply by phone

Call us on 0845 730 1400
(Monday-Friday 7am-10pm and Saturday-Sunday 8am-6pm)

Apply in branch

Open an account with just £3,000 at your local branch


LLOYDS BANK FIXED RATE CASH ISA CONDITIONS

Our agreement with you is made up of general conditions (contained in the Personal Banking terms and conditions) and additional conditions. These include the conditions below and the Banking Charges guide. If there is any overlap or conflict between the additional conditions and the general conditions, the additional conditions apply.

The Lloyds Bank Fixed Rate Cash ISA (FRISA) conditions apply from the opening of your FRISA to the end of the 24 month fixed rate period. The Lloyds Bank Instant Cash ISA conditions will apply at the end of the 24 month fixed interest rate period - please see condition 6.1.

The FRISA has a fixed interest rate, and is a restricted savings account, as you can only pay in the yearly ISA allowance set by HM Treasury and there are restrictions on withdrawal during the fixed interest rate period. It is provided by Lloyds Bank plc, an approved ISA manager.

1. ELIGIBILITY
1.1 To open a FRISA, you must be at least 16 years old and either (a) resident in the United Kingdom for tax purposes or (b) a crown employee serving overseas, or married to, or in a civil partnership with, such a person. You must inform us if these conditions no longer apply to you.
1.2 You must open the FRISA with a deposit of at least £3000. You can pay money into your FRISA in branch or by transferring money from another account.
1.3 The FRISA must be in your sole name and all funds deposited in it must belong to you.
1.4 You must not pay into more than one cash ISA in any one tax year, unless you have opened a separate cash ISA to pay in an additional ISA entitlement  resulting from the death, on or after 3 December 2014, of a spouse or civil partner (we refer to this as an ‘additional ISA entitlement’ in these conditions).
1.5 HMRC ISA Regulations state that if you do not make a deposit into your cash ISA in any tax year (other than the year of application) you will need to complete a new application form if you want to make deposits in a later year.

2. OPENING AND RUNNING YOUR FRISA
2.1 Your FRISA must be opened with a valid application form. It will start from the date we open it and applications cannot be backdated.
2.2 If you are converting an existing Lloyds Bank cash ISA (from any of the Lloyds Bank cash ISA range) to a FRISA it will start from the date you ask us to do the conversion and your account number will remain the same as the existing Lloyds Bank cash ISA.
2.3 There is no need to complete a new application when your FRISA converts to an Instant Cash ISA at the end of the fixed interest rate period because your application for a FRISA constitutes a ‘continuous application’.
2.4 The administration of your FRISA will be carried out by Lloyds Bank plc. Queries about your FRISA can be made at any branch or through Telephone Banking if you are registered.

3. DEPOSITS AND WITHDRAWALS
3.1 You can pay all or part of your yearly ISA allowance into your FRISA. You can do this by:
(a) transfer from a cash or stocks and shares ISA account with us or another ISA manager which you have subscribed to in the same tax year or in previous tax years (in which case you must complete an ISA transfer form as part of your application); or
(b) paying money into your FRISA at any branch, or by transferring money from another account.
3.2 You can also pay some or all of an additional ISA entitlement into your FRISA at any branch, or by contacting us to transfer money from another account. These payments do not count as part of your annual ISA allowance. You must pay in any additional ISA entitlement within the time-limits set out in the ISA Regulations. We will tell you about these time-limits when you apply for your account and each time you make an additional ISA entitlement payment.
3.3 If you ask to transfer your existing cash ISA to us we will contact your existing ISA provider within 5 days and the process should not take more than 15 working days to complete.  
3.4 If you ask to transfer your existing stocks and shares ISA to us, the process should not take more than 30 days to complete.
3.5 Before you decide to transfer your ISA to us, please check the charges your existing ISA provider might apply.  For example, if you have a fixed term cash ISA  there may be a charge if you want to move your money out before the account matures. If you have a stocks and shares ISA, your provider may impose exit charges or other costs. In addition, the investments you currently have will have to be sold and it is possible that you could lose out if there is a rise in the market while your transfer is processed.
3.6 The maximum amount you can pay into an ISA in any tax year is set by HM Treasury. To find out the latest allowance contact us or HMRC.
3.7 If the 24 month fixed rate period for your FRISA expires after a new tax year begins, then you will be able to add that new tax year’s allowance to your FRISA.
3.8. You can make a withdrawal or transfer out to another ISA from your FRISA during the fixed rate period. If you do so, you will lose the equivalent of 180 days tax free interest earned on the amount withdrawn or transferred. We will deduct the charge from the balance in your account before the withdrawal is made and you therefore may get back less than you originally deposited. After making a payment or withdrawal you will not be able to pay more money into your FRISA, if it means you pay in more than the yearly ISA allowance set by HM Treasury.
3.9 You can ask to transfer the whole of your FRISA during a tax year in which you make payments into it, or the whole or part of your FRISA deposits (and interest) from a previous tax year or years, to a cash ISA or a stocks and shares ISA with another ISA provider. You must complete a transfer application with your new provider who will send the transfer application to us. Within 5 working days of receiving the transfer application from your new provider, we will send your money and information to your new provider.  It should take no more than 15 working days to transfer a cash ISA and no more than 30 days to transfer a stocks and shares ISA.

4. INTEREST
4.1 When you have less than £1 in your FRISA, we will not pay interest on the amount in your account. Interest will start to be paid again (on the whole balance) if the balance is restored above that limit.
4.2 The fixed rate period will run from the date of account opening (or the date we convert your Lloyds Bank cash ISA to a FRISA where condition 2.2 applies), even if the account is opened with a nil balance.
4.3 As explained in condition 3.8, you will lose the equivalent of 180 days interest on any withdrawals or transfers out of your 24 month FRISA during the fixed rate period.
4.4 Interest is fixed and can vary depending on the amount in your FRISA. You can find out the current interest rates for our FRISA at any of our branches, by telephoning us on the Interest Rates Helpline on 0845 300 0032, or by visiting www.lloydsbank.com/isa.
4.5 Interest on your FRISA will be calculated daily on the balance of the account. We will pay you interest monthly or yearly on the anniversary of account opening, or on closure of the account if earlier. Monthly interest may be at a different rate to yearly interest. As long as you and your FRISA continue to qualify, interest will be paid tax-free.
4.6 Interest can be added to your account or you can ask us to pay it into a different account held with either us or another bank or building society. If you arrange for your interest to be paid into a different account any further interest you earn on these interest payments will be subject to tax, unless the other account is also tax-free.

5. CHANGES TO THE ISA REGULATIONS
5.1 Any changes made by HMRC to ISA Regulations that affect these conditions will apply as soon as they come into force.
5.2 Favourable tax treatment for ISAs may not be maintained (the Government is responsible for decisions about tax treatment).

6. END OF THE FIXED RATE PERIOD
6.1 On the last day of the fixed rate period (or the next working day if this falls on a Saturday, Sunday or Bank Holiday), your account will automatically become an Instant Cash ISA with a variable rate. Your account number and sort code will not change. We will write to you at least 30 days before the end of the fixed rate period and provide you with the conditions for your Instant Cash ISA and information about your variable rate. When we write, we may also send you information about other ISAs we think may be appropriate, for example if we are offering similar fixed term ISAs at the time that you may want to reinvest in.

7. OTHER TERMS
7.1 We are required to provide details of all ISA holders to HMRC. If you are or become non-resident in the UK, HMRC may be required to share this information with tax authorities in your country of residence.
7.2 We will send you a statement each year showing transactions up to and including 5th April.
7.3 We will send you a duplicate statement on request. There will be a reasonable charge for this which you will be notified of at the time of your request. This may be deducted from your FRISA balance. 
7.4 We may delegate any of our functions or responsibilities under this agreement to a third party. If we do so, we will first satisfy ourselves that the third party is competent to carry out those functions and responsibilities.

8. CLOSING YOUR CASH ISA
8.1 You can close your FRISA at any time but if you close your account during the fixed rate period you will pay a charge for withdrawing funds as set out in condition 3.8. Any interest earned up to closure will be tax-free. If you have made a deposit into your FRISA in the same tax year as you close it, you cannot open a new cash ISA for the same tax year with us or any other cash ISA provider, unless that cash ISA is opened solely to pay in an additional cash ISA entitlement. You will be able to open a stocks and shares ISA providing you are 18 or over and you do not save more than your annual ISA allowance).
8.2 If your FRISA stops qualifying as an ISA we will close it and notify you.  We will deduct income tax at the appropriate rate on the interest earned on your deposit so far, including any interest you have already been paid.  The tax will be deducted from your FRISA before the balance is paid to you.
8.3 Your FRISA will cease to qualify as an ISA and the interest will become subject to the deduction of income tax in the following circumstances:

(a) if the terms of the declaration on the application form are or become untrue;
(b) if you transfer any of your rights as an account holder or use your FRISA as security for a financial liability;
(c) from the date of your death; or
(d) if HMRC instructs us accordingly.

8.4 If you die, your FRISA balance will normally be paid to your estate. When we receive notice of your death we will close your FRISA and pay any interest earned up to the date of death tax free.  We will transfer the balance to a new account on which interest will be earned at the current Lloyds Bank Easy Saver interest rates. Your spouse or civil partner will be entitled to an additional ISA entitlement equal to the balance of your cash ISA on death (including any interest accrued at the date of your death). They will not be eligible for this additional entitlement if you are separated at the time of your death.
8.5 We will notify you if, by reason of any failure to satisfy the provisions of HMRC ISA Regulations, your FRISA becomes or will become subject to the deduction of tax.

9. CANCELLATION
9.1 If you apply for a FRISA you will be able to change your mind and cancel your account at any time before the end of the 14-day period starting on the day your FRISA is opened or the day you receive your ISA Welcome Pack, whichever is later. If you cancel your FRISA you are free to subscribe to another ISA in the same tax year. If you decide to cancel we will repay you any money you have paid together with any interest due on it, or help you to switch the balance to another account. To cancel this agreement you should tell us by writing to us at Lloyds Bank plc, BX1 1LT. There are no charges for cancelling your FRISA agreement, and you do not have to give any advance notice.

View the Instant Cash ISA account conditions

Glossary

AER

AER stands for Annual Equivalent Rate. It illustrates what your interest rate would be if interest was paid and compounded each year and allows you to easily compare different savings accounts.

Net rate

Net rate is the rate of interest payable after allowing for the deduction of income tax at the rate specified by law (currently 20%).

Gross rate

Gross rate is the contractual rate of interest payable before the deduction of income tax at the rate specified by law (currently 20%).

Interest will only be paid gross on tax-free accounts or if you are registered with us as unlikely to pay tax on your savings income. You will need to register each account you hold separately which you can do by visiting your nearest branch or by ringing us on 0345 300 0000 or 01733 347007.

Tax free rate

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

Apply online today

You can apply for a 2 Year Fixed Rate Cash ISA if you are:

  • 16 or over
  • Resident in the UK for tax purposes

ISAs explained

The ISA allowance for the 2015/2016 tax year is £15,240.

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