Are there any 3 or 5 year fixed rate cash isas that allow you to put in new money each new tax year?

refluxer

Ocelot said:

I'm not aware of any providers who would let you open a 3 or 5 year fixed rate ISA and let you contribute each year at the same rate as when you opened the ISA.

If there are any I would be interested in knowing myself!

In addition to those ISA providers already mentioned, Barclays also let you pay new ISA subscriptions into their fixed rate cash ISAs throughout the duration of the fixed rate period.

Not all of these providers offer 3 and 5 year fixed rate periods though and the rates for some of these banks aren't the highest, although some of Shawbrook's rates are normally pretty good and occasionally close enough to the best available to make them worth considering, especially with this unusual perk. I actually opened a 3 year Shawbrook fixed rate with a transfer a few months ago, specifically to give me a home for my ISA allowance for the next few years if rates fall. 
 

taff27

Thanks everyone for the replies, I'll take a look at some of the names mentioned particulalry Shawbrook.

tillycat123

If I open the shawbrook 5 year isa now can I fund it each year for the 5 years still? the terms and conditions suggests yes on this one?

refluxer

tillycat123 said:

If I open the shawbrook 5 year isa now can I fund it each year for the 5 years still? the terms and conditions suggests yes on this one?

Yes - as you've presumably discovered, the phrasing that implies that this is possible is buried in the 'Terms and Conditions' section at the bottom of the Summary Box.

"Please note that the Bank reserves the right to withdraw this product at any time. If the product is withdrawn, you can continue to put more money into your account until the expiry of the fixed term."

PaulW63

Stolas said:

Have you looked at Shawbrook and Kent Reliance? Both let you pay in new money each tax year (unless their rules have changed recently). With Shawbrook I’ve previously been able to successfully transfer a maturing 1year Shawbrook ISA, into a new 2 year Shawbrook ISA (check the ts&cs as this may be at their discretion). 

Correct. I have ISAs with both Shawbrook and Kent Reliance. My Shawbrook is a 5yr 5.22% and I’ve maxed out for two years so far and investing a further £20k on April 6th at the same 5.22% rate. It doesn’t mature till Sept 2028. Kent Reliance also allow this.

Kim_13

Albermarle said:

zagfles said:

Why would any provider offer that? If interest rates fall it'd give you the opportunity to invest at a higher rate than the prevailing market. If interest rates rise you wouldn't invest, as you could open a new one at a higher rate. Why would any provider offer you a no lose gamble? 

Well Shawbrook certainly do.
During the initial funding window, you can add new money and/or transfer in another ISA.
After that you can add new money at any time during the fixed term, subject to the normal ISA limits.
I double checked with them as some of the wording is a bit ambiguous and had it confirmed, and many other posters in other threads have confirmed it. In fact at one point I added more to my 3 year ISA months after first opening it, so it does work.
I agree it is a bit surprising they offer this facility, but I guess their potential liability is limited by the ISA annual limits.
Transfers in after the initial opening are strictly at their discretion, which protects them from a potential wall of money arriving if rates drop. 

I wonder if this is why they say that this account is not for you if you wish to save with someone else - hoping people will think that if rates rise, they have to keep investing with them if they want to use a Cash ISA, or pay them the penalty to move elsewhere. 

There’s probably a bit of a margin in it for them, as I imagine customers will go with them at a slightly lower rate than the competition, knowing they don’t have a limited funding window. 

Albermarle

Kim_13 said:

Albermarle said:

zagfles said:

Why would any provider offer that? If interest rates fall it'd give you the opportunity to invest at a higher rate than the prevailing market. If interest rates rise you wouldn't invest, as you could open a new one at a higher rate. Why would any provider offer you a no lose gamble? 

Well Shawbrook certainly do.
During the initial funding window, you can add new money and/or transfer in another ISA.
After that you can add new money at any time during the fixed term, subject to the normal ISA limits.
I double checked with them as some of the wording is a bit ambiguous and had it confirmed, and many other posters in other threads have confirmed it. In fact at one point I added more to my 3 year ISA months after first opening it, so it does work.
I agree it is a bit surprising they offer this facility, but I guess their potential liability is limited by the ISA annual limits.
Transfers in after the initial opening are strictly at their discretion, which protects them from a potential wall of money arriving if rates drop. 

I wonder if this is why they say that this account is not for you if you wish to save with someone else - hoping people will think that if rates rise, they have to keep investing with them if they want to use a Cash ISA, or pay them the penalty to move elsewhere. 

There’s probably a bit of a margin in it for them, as I imagine customers will go with them at a slightly lower rate than the competition, knowing they don’t have a limited funding window. 

I think that is more down to this issue.

Problem opening an ISA with Shawbrook when I already have one with them — MoneySavingExpert Forum