Your fixed rate is ending: what happens next

Fixed-rate bond or fixed cash ISA maturing? What usually happens on the maturity date, how to compare, ISA transfers, tax on the interest and FSCS.

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Last checked: 14 October 2026. We check this page regularly against official sources.

When a fixed-rate bond or fixed cash ISA comes to the end of its term, you usually get a short window to choose what happens to the money. Leaving it to the default is one of the most common ways savers end up earning less than they could. This page explains what normally happens at maturity and the things many savers check before the date arrives.

This is general information and guidance, not personal financial advice. ClearRates is not authorised by the FCA to give advice.

Money tight right now? If you’re thinking of using maturing savings to cover bills or debts, free, confidential help is available from MoneyHelper’s debt advice locator, StepChange and Citizens Advice.

What usually happens at maturity

Most providers write to you before the fix ends, often a few weeks ahead, with your options and a deadline. Typically you can:

  • roll into a new fix with the same provider, at whatever rate they offer then
  • move to a variable account with the same provider, often called a maturity or easy access account
  • withdraw the money to an account elsewhere.

If you don’t reply, many providers move the money into a default variable account. Its rate can be much lower than the fix you had. The exact rules are in your letter and the account terms, so check them for your deadline and what happens if you miss it.

Compare before the date, not after

A maturity letter is a good prompt to look at the whole market:

  • Best fixed rates now: compare 1-year, 2-year and longer fixes with what your provider is offering.
  • Easy access: if you’re unsure when you’ll need the money, easy access or notice accounts keep options open, but the rate can change at any time.
  • Ladder: some savers split the money across fixes of different lengths so part matures each year.

Nobody knows where rates will go next. Locking in gives certainty; staying variable gives flexibility. See easy access vs notice vs fixed.

Maturing cash ISA? Transfer, don’t withdraw

If your fix is a cash ISA, moving the money keeps it tax-free only if you transfer it. GOV.UK says that if you withdraw ISA money without a transfer, you can’t reinvest that part of your allowance again (unless the ISA is flexible and you put it back in the same tax year).

To switch, you contact the provider you’re moving to and fill in their transfer form. GOV.UK says cash ISA transfers should take no longer than 15 working days. Things to check:

  • whether the new account accepts transfers in, and from which ISA types
  • whether your current provider charges a penalty for transferring before the maturity date
  • the 2026/27 allowance is £20,000 across all ISAs. From 6 April 2027 the cash ISA limit is due to fall to £12,000 a year for under-65s. Moving older ISA money by transfer doesn’t use this year’s allowance.

Compare fixed cash ISAs and ISA transfer offers.

Tax on the interest

Interest on a non-ISA fix counts towards your Personal Savings Allowance: £1,000 for basic-rate, £500 for higher-rate and £0 for additional-rate taxpayers.

Timing matters. If a bond only lets you get at the interest when it matures, HMRC treats it all as arising in that tax year. So a two-year fix that pays everything at the end could put two years’ interest into one tax year. See our Personal Savings Allowance guide.

Re-check your FSCS protection

When you reinvest, check the new provider’s banking licence. The FSCS protects up to £120,000 per person, per banking licence, and brands that share a licence share the limit. Interest added at maturity counts towards the total, so a fix that started below £120,000 can end up above it. ClearRates shows the licence holder and a shared-licence tag on every account. See FSCS protection explained.

Work through the steps

What should I do with my savings? goes through a buffer, tax, the ISA allowance and when you need the money. It is information, not a recommendation. The moment list on that page links back here.

Never miss a maturity date again. Set up a free rate alert and we’ll email you when rates move in the categories you choose. You can unsubscribe at any time.

Written by ClearRates. General information, not personal financial advice. Rates change often, so check the provider’s terms before you apply. ClearRates may earn a commission from some links; this never affects how we rank rates. Last checked 14 Oct 2026.

Sources (all accessed 14 Oct 2026)

Questions

What happens if I do nothing when my fix matures?

It depends on the provider. Many move the money to a variable account, which may pay a lower rate. Your maturity letter and the account terms say what happens.

Can I move a maturing fixed cash ISA to another provider?

Usually, yes. Ask the new provider to arrange an ISA transfer so the money stays tax-free. GOV.UK says cash ISA transfers should take no more than 15 working days.

Will I pay tax on all the interest when my bond matures?

If you couldn't access the interest until maturity, it's all treated as arising in the tax year it's paid. Whether tax is due depends on your other income and allowances.

Is it better to fix again or go to easy access?

It depends on when you might need the money and how much certainty you want. Comparing both against today's best rates is a good starting point.

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