Martin Lewis reveals top three fixed-rate Cash ISAs and how to use them

Martin Lewis has named the best three fixed-rate Cash ISAs to open and what you need to consider before opening one (Image: (Image: ITV)) Sign up to our free email newsletter to receive the latest breaking news and daily roundups More Newsletters Subscribe Please enter a valid email Something went wrong, please try again later. More Newsletters We use your sign-up to provide content in ways you’ve consented to and improve our understanding of you. This may include adverts from us and third parties based on our knowledge of you.

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More info × Group 28 Thank you for subscribing! We have more newsletters Show Me No thanks, close See our Privacy Notice During the latest episode of Money Saving Expert's Money Show on BBC Sounds, personal finance guru Martin Lewis shared insight into the top three fixed-rate Cash ISAs currently available. The acclaimed BBC and ITV personality revealed: "Now let me move on to top fixed rate Cash ISAs. Here, the rate is locked in, they cannot drop the interest rate on you.

So, for one year you've got UBL UK at 4.31 percent, minimum £2,000, Zopa at 4.3 percent, minimum £1, and the big name here is Santander at 4.

25 percent minimum £500." Lewis continued, detailing two-year options: "For a two year fix, Progressive Building Society 4.3 percent minimum £500, UBL UK 4.

26 percent minimum £2,000, and the bigger name here is Santander, 4.1 percent minimum £500." Lucidly explaining the unique feature of Cash ISAs, Lewis added: "Now what's interesting about fixed rate Cash ISAs, unlike fixed rate normal savings, is the Cash ISA regulations mean they cannot lock your money away.

" He elaborated on how this compares with typical fixed-rate savings accounts: "So normally when I talk about fixed rate savings I say you lock your money away in return for a guaranteed rate." Highlighting the flexibility but also the potential cost of early withdrawal from Cash ISAs, the financial expert pointed out: "With fixed rate Cash ISAs, they have to allow you access to your money but they normally charge you an interest rate penalty for 90 or 180 days. "So you lose up to half a year's interest.

So you really don't want to get these if you think there's a real and obvious and common chance of you having to withdraw your money. "But the advantage of them is, if you think there's a very slight chance you need to access your money, then a fixed rate Cash ISA will always allow you to do that if you take an interest rate hit." Mr Lewis explains that fixed-rate savings are intended to secure money for a specified period, offering rate stability in return, reports Birmingham Live .

Money Saving Expert further advises that if you're considering opening a fixed cash ISA, you'll typically need to deposit the amount you plan to save within two-to-four weeks. Story Saved You can find this story in My Bookmarks. Or by navigating to the user icon in the top right.

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