What happens at the end of a Fixed Rate ISA?

What is a Fixed Rate ISA?

A Fixed Rate ISA is a type of Cash ISA where your money earns a set interest rate for a fixed period (usually between one and five years). The rate is guaranteed for the length of the term and your interest is tax-free, like with other ISA accounts. To get that guaranteed rate, you’ll usually need to agree not to withdraw money during the fixed period. Once it’s open, your account is essentially locked until maturity, unless you’re happy to pay a penalty and close your account completely.

Learn more: What is an ISA and how do they work?

What does “maturity” mean?

When your Fixed Rate ISA reaches the end of its term, it’s said to “mature.” This simply means the fixed period has ended and your ISA is no longer bound by its original terms. You’ll usually be contacted by your provider a few weeks before the maturity date with details of your options. 

What are my options when my fixed rate ISA matures?

When your fixed rate ISA matures, you normally have four main options: withdraw your money, transfer to another ISA, re-fix for a new term, or do nothing and allow your provider to move your money into a default holding account, usually an easy access Cash ISA. What options are available to you depends on your provider and the terms of your fixed rate ISA. 

1. Withdraw your money
   You can take out your savings and move them into another account or use the money however you like.
2. Transfer to another ISA
   You can transfer your funds into another ISA, whether it’s another Fixed Rate ISA, an Easy Access Cash ISA, or even a Stocks & Shares ISA or Lifetime ISA. If you transfer, it won’t count towards your annual £20,000 ISA allowance, as long as you follow the proper transfer process.
3. Re-fix for a new term
   Some providers will let you lock in a new fixed rate for another term. Just make sure to check the rate, as it might not be as competitive as what’s available elsewhere.
4. Do nothing
   If you don’t make a decision by the time your ISA matures, your provider will usually move your money into a default holding account. This will usually be an Easy Access Cash ISA with a much lower interest rate. Think of this as a safe place to park your money temporarily while you decide what to do next.

Will I keep earning interest after my ISA matures?

Usually you will keep earning interest after your ISA matures, although this depends on your provider and the terms of the fixed rate ISA you have. Essentially, exactly how much interest you’ll earn will depend on where your money goes next. If you don’t take action, it’ll normally move into a holding account with a variable rate, which is usually lower than the fixed rate you had before. To keep your money working as hard as possible, it’s worth comparing rates across multiple providers and switching to a new deal if you can.

Perfect for you: How much should I have in savings?

What should I do when my Fixed Rate ISA is about to mature?

• Check your provider’s maturity notice: They’ll let you know the date your ISA matures and what your options are.
• Compare your options: Use this time to shop around. You might find a better rate with a different provider, or a different type of ISA that suits your goals today. To make life easier, here’s our breakdown of the best savings in April 2025.
• Make a decision before the maturity date: This gives you more control over what happens to your money. It’s not the end of the world if you miss the deadline, but your savings may earn a poor rate until you take action.

Can I roll my fixed rate ISA into another one with the same provider?

Yes, most providers will give you the option to re-fix your ISA for another term. Just check the new rate and make sure it’s competitive.

Do I need to withdraw the money straight away?

Not necessarily. Most providers give you a grace period after maturity where your money sits in a holding account. But don’t leave it too long, as interest rates on these accounts are usually much lower.