Best 2 Year Fixed Rate Cash ISAs in October 2026

Tandem Bank's 2 Year Fixed Rate Cash ISA pays 5.08%, which sits above the cash ISA market average but 0.17% behind the category leader at 5.25%, so it is a solid pick without being the outright best available. At 1.98% above CPI inflation of 3.1% (Aug 2026), your money does grow in real terms, which is the main job done.

The account accepts transfers in and pays interest monthly, with a minimum of just £1 and a maximum of £20,000.

The real catch is the early withdrawal penalty of 180 days' interest, so only commit money you can leave untouched for two years.

Close Brothers Savings is paying 5.07% on this two-year fixed cash ISA, which sits above the market average for cash ISAs, though it is 0.18% behind the category leader at 5.25%. At 1.97% above CPI inflation of 3.1% (Aug 2026), the real return is meaningful, making this a reasonable choice for savers who want tax-free growth and can commit a minimum of £10,000 for the full two years.

The main catch is that your money is locked away for the term, and any early access will trigger a penalty. If you want a marginally higher rate, Tandem Bank's equivalent is at 5.08%.

Shawbrook's 2 Year Fixed Rate Plus Cash ISA pays 5.06%, which is above the cash ISA market average but 0.19% behind the category leader at 5.25%. At 1.96% above August 2026 CPI of 3.1%, your savings do grow in real terms.

The £10,000 minimum makes this one for savers with a decent lump sum, and the real catch is the early exit penalty: withdrawals or transfers out cost 180 days' interest, taken from capital if needed. Tandem Bank's 2 Year Fixed Rate Cash ISA at 5.08% is worth a look if you want a slightly better rate.