Cymraeg

2 Year Fixed Rate Cash ISA (Issue 347)

Our 2 Year Fixed Rate Cash ISA may be right for you if you have a lump sum to pay in and you don't need to take your money out for two years.

4.45% Tax-free^ each year / AER† (Fixed) Apply online
  Interest rate Balance Tax-free^ each year AER†
Annual interest £500 - £20,000 4.45% 4.45%
Monthly interest £500 - £20,000 4.36% 4.45%
Annual interest £500 - £20,000 4.45% 4.45%
Monthly interest £500 - £20,000 4.36% 4.45%
  • Open this ISA in branch, at an agency or online
  • Pay in from £500 to £20,000 in the current tax year
  • You can only pay your ISA Allowance into one Principality Cash ISA in the current tax year.
  • Transfer in existing ISAs by completing a form via post or in branch. ISA funds need to be available to be transferred within 5 business days of your request

  • Add more money to the ISA until it is taken off sale
  • Choose to have the interest paid once a year or every month
  • No withdrawals allowed before the end of the two-year term 
  • If you close or transfer the ISA early you must give up 180 days' interest
  • We can stop accepting applications at any time

Summary Box
  Summary Box
What is the interest rate? Interest rate without bonus 3.55% Tax-free^ each year / AER† (Variable)

Interest rate with bonus (variable bonus rate of 1.45% included for the first 12 months) 5.00% Tax-free^/AER† (Variable) each year (See the meanings of 'Tax-free' and 'AER' at the bottom of this page)

Interest is calculated each day on the money in the account and paid on 6th April every year.

The interest rate you receive will be the rate with bonus for the first 12 months. After 12 months the rate will change to the rate without bonus. We will notify you before this happens.
What is the interest rate? Interest rate without bonus 3.55% Tax-free^ each year / AER† (Variable)

Interest rate with bonus (variable bonus rate of 1.45% included for the first 12 months) 5.00% Tax-free^/AER† (Variable) each year (See the meanings of 'Tax-free' and 'AER' at the bottom of this page)

Interest is calculated each day on the money in the account and paid on 6th April every year.

The interest rate you receive will be the rate with bonus for the first 12 months. After 12 months the rate will change to the rate without bonus. We will notify you before this happens.
What is the interest rate? Fixed annual interest      4.45% Tax-free^ each year     4.45% AER†
Fixed monthly interest    4.36% Tax-free^ each year     4.45% AER†

(See the meanings of ‘Tax-free’ and ‘AER’ at the bottom of the page)

Interest is calculated each day on the money in the account and paid:
  • annually (each year), on each anniversary of your ISA opening; or
  • monthly, starting one month after the date your ISA is opened, and then each month after that;
    whichever you choose.
    		•
    What is the interest rate? Fixed annual interest      4.45% Tax-free^ each year     4.45% AER†
    Fixed monthly interest    4.36% Tax-free^ each year     4.45% AER†

    (See the meanings of ‘Tax-free’ and ‘AER’ at the bottom of the page)

    Interest is calculated each day on the money in the account and paid:
  • annually (each year), on each anniversary of your ISA opening; or
  • monthly, starting one month after the date your ISA is opened, and then each month after that;
    whichever you choose.
    		•
    Can Principality change the interest rate? No, the rate is fixed for two years until the ISA matures (when the account comes to an end).
    Can Principality change the interest rate? No, the rate is fixed for two years until the ISA matures (when the account comes to an end).
    Can Principality change the interest rates?
    • Yes, both the interest and bonus rates can go up or down.
    • If you have £100 or more in the account, we will give notice of any reduction in interest or bonus rates at least 14 days before the change takes effect.
    • When the rate changes to the rate without bonus, we will send you a reminder 14 days before this happens, no matter how much money you have in the account.
    • For more information, see the section Changes to interest rates in our Savings Terms and Conditions.
    Can Principality change the interest rates?
    • Yes, both the interest and bonus rates can go up or down.
    • If you have £100 or more in the account, we will give notice of any reduction in interest or bonus rates at least 14 days before the change takes effect.
    • When the rate changes to the rate without bonus, we will send you a reminder 14 days before this happens, no matter how much money you have in the account.
    • For more information, see the section Changes to interest rates in our Savings Terms and Conditions.
    What would the estimated balance be after 24 months based on a £1,000 deposit? £1,090.98

    This is based on you choosing to have interest paid annually and added to your ISA, and not making any further payments into the account.
    What would the estimated balance be after 24 months based on a £1,000 deposit? £1,090.98

    This is based on you choosing to have interest paid annually and added to your ISA, and not making any further payments into the account.
    What would the estimated balance be after 12 months based on a £1,000 deposit? Estimated balance after 12 months (interest rate of 5.00% AER, includes variable bonus rate of 1.45% tax-free for 12 months)
    £1,050.00

    Estimated balance after 24 months (only the underlying interest rate of 3.55% AER is paid for months 13 to 24)
    £1,087.28

    This is based on no further money being put in or taken out of the account and no change to the interest rate or bonus rate.
    What would the estimated balance be after 12 months based on a £1,000 deposit? Estimated balance after 12 months (interest rate of 5.00% AER, includes variable bonus rate of 1.45% tax-free for 12 months)
    £1,050.00

    Estimated balance after 24 months (only the underlying interest rate of 3.55% AER is paid for months 13 to 24)
    £1,087.28

    This is based on no further money being put in or taken out of the account and no change to the interest rate or bonus rate.
    How do I open and manage my account?
    • You must be a UK resident and satisfy the minimum age requirements to open a cash ISA (see your 2 Year Fixed Rate Cash ISA account terms).
    • You can open your ISA in branch, at an agency or online. If you want to open this ISA with funds from a Principality fixed term ISA that has matured, you can do this online, in branch, at an agency or by post.
    • You must keep at least £500 (the minimum balance) in the account.
    • You cannot pay in more than than the ISA Allowance each tax year. The ISA Allowance for the current tax year (2024/2025) is £20,000. You can only pay your ISA Allowance into one Principality cash ISA in the current tax year.
    • You can transfer unlimited amounts from ISAs from previous tax years, as these are not part of your current year's ISA allowance.
    • You must make the first payment into your ISA within five business days of it opening. If you don’t, we may close the account.
    • You can keep making payments into your ISA while we are still offering this ISA to customers.
    • Your ISA will mature after 2 years, on the anniversary of the account opening.
    • You can manage the account in branch, at an agency, by post or online through our Your Account service at principality.co.uk.
    How do I open and manage my account?
    • You must be a UK resident and satisfy the minimum age requirements to open a cash ISA (see your 2 Year Fixed Rate Cash ISA account terms).
    • You can open your ISA in branch, at an agency or online. If you want to open this ISA with funds from a Principality fixed term ISA that has matured, you can do this online, in branch, at an agency or by post.
    • You must keep at least £500 (the minimum balance) in the account.
    • You cannot pay in more than than the ISA Allowance each tax year. The ISA Allowance for the current tax year (2024/2025) is £20,000. You can only pay your ISA Allowance into one Principality cash ISA in the current tax year.
    • You can transfer unlimited amounts from ISAs from previous tax years, as these are not part of your current year's ISA allowance.
    • You must make the first payment into your ISA within five business days of it opening. If you don’t, we may close the account.
    • You can keep making payments into your ISA while we are still offering this ISA to customers.
    • Your ISA will mature after 2 years, on the anniversary of the account opening.
    • You can manage the account in branch, at an agency, by post or online through our Your Account service at principality.co.uk.
    How do I open and manage my account?
    • You must be a UK resident and satisfy the minimum age requirements to open a cash ISA (see your Online Bonus 5 Access Cash ISA account terms).
    • You must open your ISA online.
    • You have to link your Online Bonus 5 Access Cash ISA to a current account in your name with another UK bank or building society in order to move money when you need it.
    • You can't have more than one of this issue number of the Online Bonus 5 Access Cash ISA in your name.
    • You must keep at least £1 (the minimum balance) in the account.
    • You cannot pay in more than the ISA Allowance each tax year. The ISA Allowance for the current tax year (2024/2025) is £20,000. You can only pay your ISA Allowance into one Principality cash ISA in the current tax year.
    • You can transfer unlimited amounts from ISAs from previous tax years (subject to the maximum balance), as these are not part of your current year’s ISA allowance.
    • If your ISA reaches £1,000,000, you cannot pay any more money in.
    • If we do not receive the first payment within five business days of the account opening, we may close it.
    • You must manage the account using the online service Your Account at principality.co.uk
      How do I open and manage my account?
      • You must be a UK resident and satisfy the minimum age requirements to open a cash ISA (see your Online Bonus 5 Access Cash ISA account terms).
      • You must open your ISA online.
      • You have to link your Online Bonus 5 Access Cash ISA to a current account in your name with another UK bank or building society in order to move money when you need it.
      • You can't have more than one of this issue number of the Online Bonus 5 Access Cash ISA in your name.
      • You must keep at least £1 (the minimum balance) in the account.
      • You cannot pay in more than the ISA Allowance each tax year. The ISA Allowance for the current tax year (2024/2025) is £20,000. You can only pay your ISA Allowance into one Principality cash ISA in the current tax year.
      • You can transfer unlimited amounts from ISAs from previous tax years (subject to the maximum balance), as these are not part of your current year’s ISA allowance.
      • If your ISA reaches £1,000,000, you cannot pay any more money in.
      • If we do not receive the first payment within five business days of the account opening, we may close it.
      • You must manage the account using the online service Your Account at principality.co.uk
        Can I withdraw money?
        • No, you cannot make withdrawals from your ISA before it matures.
        • If you close or transfer your ISA before the end of the fixed-rate term (within two years), you will lose 180 days’ interest. If you haven’t earned enough interest to cover the 180 days’ interest it will be taken from the money in the account. This means you may get back less than you originally put in.
        • We will write to you before your ISA matures to find out what you want to do with your money.
        • If we don’t receive any instructions from you before your ISA matures, we will move your money to our Variable Rate Cash ISA or the nearest equivalent we offer at the time.
        Can I withdraw money?
        • No, you cannot make withdrawals from your ISA before it matures.
        • If you close or transfer your ISA before the end of the fixed-rate term (within two years), you will lose 180 days’ interest. If you haven’t earned enough interest to cover the 180 days’ interest it will be taken from the money in the account. This means you may get back less than you originally put in.
        • We will write to you before your ISA matures to find out what you want to do with your money.
        • If we don’t receive any instructions from you before your ISA matures, we will move your money to our Variable Rate Cash ISA or the nearest equivalent we offer at the time.
        Can I withdraw money?
        • Yes, you can make five withdrawals from the account every tax year or close your ISA at any time using your linked account.
        • You can close or transfer your ISA at any time.
        • This is a flexible ISA. This means you’ll be able to take money out of it and replace that money before the end of the same tax year, without the replacement contributing to your annual ISA allowance.
        Can I withdraw money?
        • Yes, you can make five withdrawals from the account every tax year or close your ISA at any time using your linked account.
        • You can close or transfer your ISA at any time.
        • This is a flexible ISA. This means you’ll be able to take money out of it and replace that money before the end of the same tax year, without the replacement contributing to your annual ISA allowance.
        Additional information
        • Service charges and costs may apply to the account. These are set out in our Tariff of Charges.
        • In certain circumstances we may refuse an instruction for using an account. These circumstances are set out in our Savings Terms and Conditions.
        • The tax treatment of your savings depends on your individual circumstances and may change in the future. This is set by HM Revenue and Customs (HMRC). Further information can be found at gov.uk/individual-savings-accounts/how-isas-work
        • The interest rates quoted above were correct on 04/07/2024.
        Additional information
        • Service charges and costs may apply to the account. These are set out in our Tariff of Charges.
        • In certain circumstances we may refuse an instruction for using an account. These circumstances are set out in our Savings Terms and Conditions.
        • The tax treatment of your savings depends on your individual circumstances and may change in the future. This is set by HM Revenue and Customs (HMRC). Further information can be found at gov.uk/individual-savings-accounts/how-isas-work
        • The interest rates quoted above were correct on 04/07/2024.
        Additional information
        • Service charges and costs may apply to your ISA. These are set out in our Tariff of Charges.
        • In certain circumstances we may refuse an instruction for using an account. These circumstances are set out in our Savings Terms and Conditions.
        • The tax treatment of your savings depends on your individual circumstances and may change in the future. This is set by HM Revenue and Customs (HMRC). Further information can be found at gov.uk/individual-savings-accounts/how-isas-work
        • The interest rates quoted above were correct on 18/07/2024.
        Additional information
        • Service charges and costs may apply to your ISA. These are set out in our Tariff of Charges.
        • In certain circumstances we may refuse an instruction for using an account. These circumstances are set out in our Savings Terms and Conditions.
        • The tax treatment of your savings depends on your individual circumstances and may change in the future. This is set by HM Revenue and Customs (HMRC). Further information can be found at gov.uk/individual-savings-accounts/how-isas-work
        • The interest rates quoted above were correct on 18/07/2024.
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        1. The results displayed were dependent on the information you provided and are for illustrative purposes only and are by no means an indication of being suitable for your individual circumstances.
        2. The calculations assume interest is paid gross* of income tax on the entire balance on an annual basis
        3. It has been assumed that no withdrawals or additional deposits would be made from the account during the saving duration, and that the interest rate also remains the same during this time (note that interest rates on variable rate savings account are subject to change, and when fixed rate deals end, there is no guarantee that the same rate will be available in the future). 

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        Before you apply below, please read the 2 Year Fixed Rate Cash ISA Issue 347 Terms & Conditions

        If you are transferring previous years' ISA subscriptions, please enter your initial deposit as £500 on the application form. The application form will ask you whether you are making a transfer later in the process.

        You can only invest in one Principality Cash ISA per tax year.

        As you will be bound by the account terms of the ISA and your information is held in accordance with our privacy policy, you should read, print and save the below documents for your records. If you have any queries relating to them please contact us for further information.

        Please also read the following:

        ^Tax-free means UK Income Tax and Capital Gains Tax is not deducted from the interest you earn. This depends on your individual circumstances, and may change in future.

        †AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest were paid once each year on the whole balance, including previous interest payments. 

        I would like my interest paid annually
        I would like my interest paid monthly
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