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Fixed Rate Cash ISA Issue 8 to 26th March 2031

melton tax free savings accounts

A Cash ISA (Individual Savings Account) is an investment which enables annual sums to be saved and on which interest is paid free of tax. However, it is not possible to state that favourable tax treatment will be maintained indefinitely as it is the government and not the Society who is responsible for the tax treatment.

To open an account, please visit one of our branches or see how to apply below.

Whilst this product is available, you can pay in any amount up to the annual ISA subscription limit.  Once the product has been withdrawn, you will not be able to pay in any further funds to this account.

This means that you may not be able to utilise your full ISA allowance, unless you deposit £20,000 at account opening.

This account is currently closed to new customers

Account name Fixed Rate Cash ISA Issue 8 to 26th March 2031
What is the interest rate?
3.95% tax-free / 3.95% AER
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Interest is calculated on a daily basis and added to the account annually on 31st March.
Can the Melton Building Society change the interest rate?

The interest rate is fixed for the term of the investment, until 26th March 2031.

For full details, please read our Savings Terms and Conditions.
What would the estimated balance be at the end of the term based on a £1,000 deposit?

Based on the current rate of interest, if you deposited £1,000 in this account, at the end of the term 26th March 2031 you would have £1,213.10.

These figures are only an estimate, based on:
• an opening date of 1st April 2026
• no additional deposits
• no withdrawals being made
• no rate changes in that time with all interest being added to your account

These illustrations are just an example to help you compare accounts. It does not take into account any individual circumstances.
How do I manage and open my account?

Existing customers can open and operate this account online via our website or in branch.

New customers can open this account in branch and operate the account online via our website or in branch.

This account is only for UK resident individuals aged 18 or over with the exception for certain Crown employees, their spouse or registered civil partner for example a member of the UK armed forces, a civil servant or a diplomat.

Deposits into this account must be made within 30 days from opening.

Accounts can be opened with a minimum amount of £1,000 and the maximum that can be held in this account is £500,000. You may invest up to the maximum Cash ISA limit in a single tax year.

From 6th April 2025 the overall ISA subscription limit for 2025-26 will be £20,000. New subscriptions can be split in any proportion between cash and stocks and shares ISAs as the saver chooses.

Withdrawals have no effect on the subscription limits. This means that once the limit has been reached for the tax year you cannot make any further investments in that year regardless of any withdrawals made.

ISA transfers in, either from an existing Melton Building Society ISA or from another ISA provider, are not accepted into this account.

ISA rules:

  • Investments must be in your sole name only
  • You must be resident and ordinarily reside in the UK
  • You will be and must remain in beneficial ownership of the investment, and it must not be used as security for a loan
  • The Society will notify you if, because of any failure to satisfy the ISA Regulations, your Cash ISA has, or will, become void
  • In the event of death, any interest due up to the date of death will qualify for income tax exemption, but not thereafter as the account will cease to be an ISA
  • In the event of death on or after 6th April 2025, the account will be designated as a "continuing account of a deceased investor”, or "continuing ISA" and interest accrued before and after date of death will be exempt from tax. The ISA will continue until either:
    a) the completion of the deceased's estate
    b) the day after the 3rd anniversary of the investor's death
    c) the closure of the account.
  • In the event that Melton decide to delegate any of our functions or responsibilities as an ISA manager, we will satisfy ourselves that the selected provider is able to carry out these functions in line with these terms.
Can I withdraw money?

No, early withdrawals are not allowed during the fixed rate term, however you can close your account.

Should you close your account in the fixed rate term, you will be subject to an interest penalty charge of 180 days’ interest. If you close your account in the first 180 days, you might get less back than you deposited. As withdrawals are not allowed should you need to access your money during the fixed rate term your account must be closed, and all your money withdrawn.

Transfers out - if we receive an ISA transfer request for your ISA from a new provider, we will send the cash and accompanying information within 5 business days of receipt. ISA transfers during the fixed rate term are subject to a penalty charge of 180 days’ interest.
Additional information

Fixed rate maturity process – the Society will write to you 14 days before the date of maturity to set out your options. You will be invited to reinvest your maturing funds into an alternative product, transfer to an existing Melton Building Society account or withdraw the balance. If we do not receive your instructions before the date of maturity, your money will default into Easy Access ISA account. If your funds are automatically reinvested into our Easy Access ISA account, you can access your money without providing notice. We will help you switch to another account, or we will give all your money back with any interest it has earned.

This is a summary of the key features of this account. You will still need to read the general Savings Terms and Conditions.
Tax treatment depends on individual circumstances and may be subject to change in the future
How to apply

This account is only available to open in branch, therefore please visit your local branch with the completed the application form and necessary identification. Existing customers who are already registered for our online portal will be able to login into the portal and open this account online.

The AER (Annual Equivalent Rate) illustrates what the interest rate would be if interest was paid and added each year.

This is a tax-free account so interest payable is exempt from income tax. The tax treatment may be subject to change and depends upon your individual circumstances.

 

Your Personal Information

At the Melton we take your privacy seriously and always treat your personal details with utmost care. We promise to keep your information safe and secure and never share it with other companies for marketing purposes.

You can read more about how we collect and process your personal data in our privacy notice, which you can access here.

This account is currently closed to new customers

AER

  • The Annual Equivalent Rate (AER) shows you what interest rate your savings account will earn over a year.

Annual interest

  • Interest is money that we pay to you based on the amount of savings you hold with us. The rate of interest you will earn is given as a percentage. If your interest is paid annually, this means that you will receive it on a yearly basis. The date you receive this payment will be in the terms of your account.

Cash ISA (Individual Savings Account)

  • This is a type of savings account that is tax-free meaning you don’t pay tax on any interest you earn.

Easy access account

  • This is a type of savings account that allows you to withdraw your money without providing notice.

Financial Conduct Authority (FCA)

  • The FCA are a regulatory body in the UK, operating independently from the government. They are responsible for regulating the financial services industry in the UK, which includes protecting customers and keeping the industry stable.

Financial Services Compensation Scheme (FSCS)

  • The FSCS is a government scheme that protects savings you may hold with us, up to the value of £120,000. It is there to provide compensation if the Society was to fail, and you were to lose money.

Fixed rate

  • A rate of interest that remains the same for a set period of time, as outlined in the terms of your account.

Gross interest

  • This is the interest rate that is payable without the tax taken off.

Maturity date

  • This is the end date of your savings account, if your account has a maturity date this will be specified in your product terms. Once you reach this date, we will contact you to see what you’d like to do with your money.

Monthly interest

  • Interest is money that we pay to you based on the amount of savings you hold with us. The rate of interest you will earn is given as a percentage. If your interest is paid monthly, this means that you will receive it on a monthly basis. The date you receive this payment will be in the terms of your account.

Notice account

  • This is a type of savings account that requires you to notify us a set number of days before you wish to make a withdrawal, the amount of notice you need to give will normally be detailed in the terms of your account.

Penalty

  • This is a charge you may incur if you don’t stick to the conditions of your account. For example, you may incur a penalty if you make a withdrawal from a notice account without serving the full notice period.

Personal Savings Allowance

  • This is the total amount of interest you can earn across all your savings accounts, not including ISAs, over the course of a year without paying tax. This includes all savings accounts that you may hold across different providers. More information can be found here: https://www.gov.uk/apply-tax-free-interest-on-savings

Prudential Regulation Authority (PRA)

  • The PRA form part of the Bank of England. They are a regulatory body responsible for the prudential regulation and supervision of banks, building societies, credit unions, insurers and major investment firms.

Regular savings account

  • This is a type of savings account where you can make deposits into the account on a monthly basis. Some regular savings accounts may have limits on how much you can deposit per month and how many withdrawals you can make.

Variable rate

  • A rate of interest that can go up or down during the lifetime of your savings account.
Click here for our handy guide to making the most out of your savings