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Aldermore Bank has raised the interest on two fixed Cash ISAs from today, offering new rates of up to 4.20%. The new interest rates apply to new customers who open a one- or two-year fixed savings account.
The rate on Aldermore’s one-year fixed ISA will increase from 4.16% AER to 4.20%, while savers opening a two-year fixed ISA can benefit from a rate increase from 4.06% AER to 4.13%. Alex Myers, director of savings at Aldermore, said: “Our fixed rates come in a range of terms, so savers can easily set their money aside for however long they feel comfortable. Whether you’re planning for a short‑term goal or looking further ahead, our refreshed Fixed Rate ISAs give you the flexibility to lock in a standout rate, and you can watch your savings grow in confidence.”
Both accounts require a minimum deposit of £1,000 to open. Interest on the one-year fixed account is paid when it matures, whereas the two-year fixed account pays interest annually on the anniversary of its opening.
Similar to most fixed Cash ISAs, withdrawals are penalised, so savers should be comfortable leaving their money in the account for the duration of the term to get the most out of it.
For the one-year account, early access is subject to a 90-day loss of interest. Earlier access to funds held in the two-year fix will be subject to a 180-day loss of interest.
Fixed-rate Cash Individual Savings Accounts (ISAs) have gained popularity in the current high-interest rate environment. They offer people living in the UK a way to save without paying tax on the interest earned, up to an annual limit of £20,000 for the 2025/26 tax year.
With markets pricing in at least one more Bank of England Base Rate cut this year, savings interest rates have been on the decline. This makes fixed-rate accounts more attractive, as they lock in the interest rate for a set term, allowing savers to secure higher returns for longer.
How do the accounts compare?
Aldermore’s one-year fixed rate currently places competitively, but it isn’t topping the table. At the time of writing, Close Brothers Savings offers the market-leading Annual Equivalent Rate (AER) of 4.32%.
Savers need a minimum opening deposit of £10,000 to start the account, and interest is paid annually. Early access is permitted on closure only and is subject to a 90-day loss of interest.
Cynergy Bank and Castle Trust Bank place just behind for one-year fixed rate ISAs, with AERs of 4.32% and 4.31%, respectively.
To launch Cynergy Bank’s account, savers need a minimum deposit of £500, interest is paid on the anniversary. Earlier access is permitted on closure only, and will be subject to a 180-day loss of interest.
To launch Castle Trust Bank’s account, savers need a minimum deposit of £1,000, and interest is paid on maturity. Earlier access is also permitted on closure only and will be subject to a 180-day loss of interest.
In the two-year fixed rate market, Marsden Building Society takes the lead with an AER of 4.30%. Savers need a minimum deposit of £5,000 to launch the account, and interest is paid yearly. Earlier access is permitted on closure only and will be subject to a 270-day loss of interest.
United Trust Bank and Close Brothers Savings are just below, with competitive interest rates of 4.25% AER and 4.23% AER, respectively.
To launch United Trust Bank’s account, savers need a minimum deposit of £5,000, interest is paid on the anniversary. Earlier access will be subject to a 270-day loss of interest via the nominated account. However, interest can be withdrawn annually on the anniversary.
To launch Close Brothers Savings’ account, savers need a minimum deposit of £10,000, and interest is paid yearly. Earlier access is also permitted on closure only and will be subject to a 150-day loss of interest.
