Savers looking to secure competitive, tax-free returns have been given fresh options as competition for deposits intensifies and the ISA market moves closer to a £1trillion milestone.
The latest deals arrive at a time when tax-efficient saving is becoming an increasingly important priority for households.
Hargreaves Lansdown has unveiled two exclusive fixed-term Cash ISA products through Chetwood Bank, offering returns aimed at beating inflation.
The five-year fix pays 4.26 per cent, the highest fixed-term rate currently available on the platform, while an 18-month option offers 4.02 per cent.
The wider ISA market is approaching record levels, with nearly £900billion currently held in accounts by more than 21 million adults, and around four in ten Britons using these wrappers to protect their savings from tax.
The move follows Hargreaves Lansdown’s recently launched easy access ISA paying 4.30 per cent through Shawbrook.
Mark Hicks, Director of Active Savings at Hargreaves Lansdown, said: “The launch of these two-market leading, inflation-beating, fixed-term products, which are exclusive to HL is great news for Active Savings clients.”
He attributed the strong Cash ISA inflows to savers seeking to capitalise on their full allowances before the forthcoming restrictions.
“By securing these highly competitive fixed rates, savers can help protect their capital from the erosive effects of inflation, while also benefiting from tax-free interest, which is an increasingly valuable advantage in today’s environment,” Mr Hicks added.
The wider ISA market is approaching record levels, with nearly £900billion currently held in accounts
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He emphasised that fixed-term products provide certainty and stability, with guaranteed returns over defined periods enabling customers to plan more effectively for significant financial goals.
Cash ISA savings have risen sharply, with households depositing £5.2billion in January 2026 alone.
The spike shows savers are keen to use the current £20,000 annual ISA allowance while it is still available.
From April 2027, the Chancellor’s reforms will reduce the limit to £12,000 for anyone under 65. With the cut approaching, many are choosing to maximise their tax-free savings both this year and next before the new rules take effect.
The combined value of Cash and Stocks and Shares ISAs has grown by more than 80 per cent
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Over the past decade, the combined value of Cash and Stocks and Shares ISAs has grown by more than 80 per cent, climbing from £470 billion in 2013/14 to £871billion in 2023/24.
Charlene Young, Senior Pensions and Savings Expert at AJ Bell, described ISAs as “an astonishingly popular savings and investment product, with millions of people across the UK taking advantage of the tax perks of an ISA to set aside money for the future.”
Older savers have built the largest pots, with those aged 65 and over holding an average exceeding £64,000 per account, while under-25s typically have around £8,300 saved.
argreaves Lansdown offers several other competitive rates according to Moneyfacts data
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Beyond the new fixed-term deals, Hargreaves Lansdown offers several other competitive rates according to Moneyfacts data.
A six-month fixed rate from Paragon pays 3.90 per cent, while Chetwood provides a one-year option at 3.95 per cent.
Two-year and three-year fixed rates from Chetwood both stand at 3.92 per cent.