- 4.01% Tax-free/AER fixed until 19 February 2025
- Guaranteed interest rate for the term of the account
- Typically offers a higher interest rate than our Cash ISA
- Open with £500 and save up to £20,000 each tax year. You can transfer additional funds in if you have Cash ISAs and Stocks and Shares ISAs with another ISA provider
A Fixed Rate ISA gives you a guaranteed fixed rate for the term of the account and usually offers a higher rate of interest than our Cash ISA. There are tax advantages too, because any interest you earn is tax free.
Saving for a longer term could give you a higher rate of interest. If you don’t need easy access to your savings and you can lock your money away for a fixed term, a Fixed Rate ISA could be for you.
You can open an account in one of our Relationship Centres with £500 and save up to £20,000 each year tax-free, or if it’s easier for you, you can download an application form and post it to us.
Questions we get asked
Tax Year Account Opened/Funds Deposited Tax-free/AER fixed
2022/23 4.01%
AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and added each year.
Interest is paid annually tax-free on 19 February each year, as long as the account continues to satisfy the ISA regulations,until the account matures on 19 February. Interest is usually added to the account, but it can be paid to a bank account or another account with Scottish Building Society if you’d like.
No - the interest rate is fixed for the term of the account.
After 2 years the estimated balance would be £1,081.81.
This estimate is just for illustrative purposes and doesn’t take into account any deposits or withdrawals you might make.
Deposits can only be made within 14 days of opening the account. No further deposits can be made after this time.
You can open a Fixed Rate ISA if you're aged 16 or over and resident in the UK for tax purposes. The minimum opening balance is £500.
You can open a Fixed Rate ISA in one of our Relationship Centres, or if it’s easier for you, you can download an application form and post it to us with a cheque for your initial deposit and proof of ID. It’s best to use a recorded mail service if you send original documents to us.
Once your account is open, you can view your balance with SBS online.
For more information see managing your savings account.
The Government sets an ISA limit on how much you can save in all your ISAs each tax year (from 6th April – 5th April). For 2022/23, your full annual ISA allowance is set at £20,000. There are 4 types of ISA - cash ISA, stocks and shares ISA, innovative finance ISA and Lifetime ISA.
Interest is calculated daily from the day after you deposit your cash or cheque until the date of withdrawal. The amount of interest is calculated on the daily balance.
Interest will be added to your account on 29 January each year. Or, if you prefer, the interest can be transferred to another Scottish Building Society account or paid to your bank.
Whatever your personal tax status, you won’t have to pay income tax on the interest earned on your Fixed Rate ISA under current regulations, provided that you keep to the annual subscription limits and other rules of operation laid down by HM Revenue & Customs. You don’t need to mention your Fixed Rate ISA on any tax return you fill in. Any interest earned is free of Capital Gains Tax.
Interest earned from your Fixed Rate ISA will not count towards your Personal Savings Allowance.
Generally, withdrawals aren’t permitted, but if you need access to your money within the fixed term, there will be a penalty of 180 days interest on the
amount withdrawn.
You can make withdrawals in one of our Relationship Centres. You’ll need to bring proof of ID with you (for example, a valid Passport) and your signature (for example, a valid driving licence).
If you want to make ISA transfers, you can transfer money in from other Cash ISAs and Stocks and Shares ISAs.
Your ISA savings will be included in your estate for inheritance tax purposes. However, any accrued ISA savings can be passed to your spouse or civil partner upon death, allowing the surviving spouse or civil partner to continue receiving the tax benefits. Please contact us for more details.
Any eligible deposits into your E-ISA are protected up to the limit of the Financial Services Compensation Scheme, the UK’s deposit guarantee scheme.
If your bank or building society fails and can’t pay back your money, FSCS can automatically pay you compensation:
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up to £85,000 per eligible person, per bank, building society or credit union.
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up to £170,000 for joint accounts.
Find out more by visiting fscs.org.uk
Request a Transfer
If you want to transfer funds in from existing ISAs with another provider, please complete the relevant transfer authority form.
If you want to transfer funds from an existing Scottish Building Society savings account or ISA, please complete our withdrawal form.
We're here to help
You can visit us in our Relationship Centres, or call us on 0333 207 4007. Lines open 9am-5pm Mon to Fri (10am-5pm Wed). Calls may be recorded and/or monitored.
Scottish Building Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Register No 206034)