I'm looking for a specific kind of ISA product and simply can't find what I want. Here are my requirements:

  1. An ISA (I don't mind what type so long as the rate's 1.5%+)
  2. Lump sum initial payment (from my existing ISA)
  3. Additional monthly payments allowed
  4. Fixed term - so I can't withdraw the cash without penalty, until after a fixed period, say 3 years.

I've searched high and low and the banks don't want to play. Does anyone know if such a kind of investment product exists?

2 Answers 2


If you want the flexibility to make additional payments you should favour a flexible ISA. Shop around on comparators and you should be able to find a few that responds to your minimum interest rates

Fixed-term ISAs are comparable to a bond: money goes in on day one and then no more deposit are allowed. The rate is fixed for the period. Even though they have a fixed you would still be able to withdraw cash but this would cost you an interest penalty.

Not being able to withdraw money is asking the banks to take responsibility on your behalf... They won't do that

  • Thanks for your answer. Re the last comment... Fixed term ISA's, for example, don't allow money to be withdrawn until the term is up, say 3 years, so I don't think the banks "won't do that" as you say... they do do that already! I just don't understand why they don't combine fixed term ISA's (i.e. cannot withdraw until the term is up) with additional monthly payments. Maybe they tried it before and people got into a fix and demanded their money back...
    – user20748
    Commented Apr 14, 2015 at 8:06
  • 1
    @pbs strictly speaking they don't - it's always possible to close a fixed term ISA early or transfer money out; the ISA laws require this to be the case. Commented Apr 14, 2015 at 8:46
  • I see. So you can always technically get at your cash even for fix3d term, but presumably that isn't "instant" as with instant cash ISAs and will probably incur a penalty. Thanks. This still leaves me wondering why banks don't combine fixed term + monthly top ups. That's what i want ideally.
    – user20748
    Commented Apr 14, 2015 at 9:20

I believe your last requirement is the main problem. AIUI the law requires that ISA providers allow withdrawals. They can require a notice period and they can penalise you (e.g. via lost interest) for withdrawing but they cannot prevent you accessing your money for an extended period.

  • 2
    NigelHarper makes the correct point about ISAs being mandated as accessible - though most apply interest penalties. moneysavingexpert.com/savings/best-cash-isa has menton of a branch-only, high-value transfer ISA from Clydesdale. Branch only will help with restricting your access (even postal might be a better bet). Shawbrook was another candidate with a lesser rate but still above your 1.5% requirement.
    – Chris
    Commented Apr 13, 2015 at 22:42

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