Newcastle Building Society has launched several competive 4.1% interest rate ISAs ahead of the end of the financial year. New and existing customers can choose between three fixed-rate ISA accounts, with terms of two, three, or five years.

If savers put away £1,000 now, they could earn £83 tax-free during the two-year term, or £222 in the five-year account, according to the building society. Brits can currently save up to £20,000 per year tax-free in an ISA, and savers have until April 5 to use up this year’s allowance. Newcastle Building Society said the launches have come at a time of high demand. Its analysis of CACI data showed Cash ISA balances reached record levels in late 2025, with savers continuing to use ISAs to save tax-free.

Ben Smith, head of commercial and product development at Newcastle Building Society, said: “Record Cash ISA balances show how important tax-free savings remain for many households. But policy changes and market noise can leave people unsure of the best route.

“Our members tell us they want certainty for their savings. That’s why we’ve launched our new 2, 3 and 5-year ISAs, providing a highly competitive return with the flexibility of several term options.

“In the lead-up to the end of the tax year, our branches are experiencing a busy ISA season. With savings and financial advice under one roof, our teams are well placed to help people talk through their options with someone they trust, plan towards their savings goals and give clear, practical guidance when it matters most.”

The products are available via both Newcastle Building Society Group brands, which include Manchester Building Society.

Across all three ISAs, withdrawals will be subject to a penalty, with account holders incurring a 120-day loss of interest for withdrawals in the two-year term, a 180-day loss of interest in the three-year term, and a year’s worth of interest lost on the five-year term.

Customers must have successfully opened their account and submitted funds by 11.59pm on April 5, 2026.

As of April 2027, the ISA landscape will change drastically. While the overall allowance will remain the same, anyone under 65 will be limited to saving £12,000 annually in a cash ISA from April 2027.

Any remaining allowance must be used in other accounts, such as a Stocks & Shares ISA or a Lifetime ISA. Labour said it was designed to encourage more investment and to support investment in UK companies, but not all MPs agree with the decision.

How do other ISAs compare?

Hampshire Trust Bank is currently offering a 4.32% rate on its 2 Year Online ISA Fixed Saver, slightly higher than Close Brothers Savings, which is offering 4.31% on its two-year Fixed Rate Cash ISA.

For a longer five-year term, Bath Building Society is offering a similar rate to Newcastle. Its Five Year Fixed Rate ISA is currently 4.15%, with interest paid yearly. Leeds Building Society is slightly lower, with a 4.06% on its 5 Year Fixed Rate Cash ISA.

For the happy medium, Charter Savings Bank is offering an equally competitive 4.14% rate on its 3 Year Fixed Rate Cash ISA, with the interest paid on the anniversary.