Commsave Credit Union has launched a 2-Year Fixed Rate ISA, offering members a guaranteed 3.5% interest rate until April 2027—a timely opportunity as economic uncertainty continues and interest rates are forecast to decline.

Recent forecasts from the Bank of England suggest interest rates could fall to 3.7% by the end of 2025, stabilising at 3.5% in 2026 and potentially dropping further to 2.75% by March 2027. Against this backdrop, locking in a fixed rate now allows savers to maximise their returns, regardless of future rate fluctuations.

Richard Munro, Interim Chief Executive of Commsave Credit Union, explained:
“In times of economic uncertainty, a fixed-rate ISA can be a smart choice. Our 2-Year Fixed Rate ISA allows members to benefit from a secure 3.5% interest rate, ensuring their savings continue to grow even if wider interest rates decline. At Commsave, we are committed to providing safe, accessible, and ethical financial solutions that help our members build long-term financial resilience.”

The tax-free status of an ISA makes it an attractive option for savers, allowing them to earn interest without paying tax on their returns. However, as a non-flexible Cash ISA, any withdrawals made during the two-year term will count toward the annual ISA subscription allowance, and members will lose the tax benefit of any money they take out.

To open an account, members must be aged 16 or over and are required to speak with Commsave’s finance team before applying. This ensures they fully understand the fixed-term nature of the account, including potential penalties for early closure. Applications are then sent to members by post or via e-signature for completion.

The ISA requires a minimum deposit of just £1, making it accessible for a wide range of savers. However, total savings across all Commsave accounts must not exceed £85,000.

Honor Keen, Commsave’s Head of Finance, said: “Launching our new Fixed Rate ISA is a direct response to both the current economic climate and the growing demand from our members. We recognise the need for stable, secure savings options in uncertain times, and this product reflects our commitment to supporting our members’ financial goals while adapting to market conditions.”

Commsave Credit Union remains committed to helping members save and borrow responsibly, providing ethical financial services that support financial wellbeing.

For more information, visit www.commsave.co.uk.