Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
I Found an Easy Way to Earn 4.28% Tax-Free This Year!
Ruby Layram
19th Nov 2025
Correct as of 18/11/2025
I love finding ‘guaranteed’ ways to make my money grow, especially when it’s tax-free! There’s something really satisfying about knowing exactly what return you’re going to get, without worrying about market ups and downs. It makes planning my finances feel so much easier.
That’s why I got excited when I came across the 1-Year Fixed Rate ISA from Vida Savings, which pays a 4.28% AER. In a world where savings rates seem to change every five minutes, locking in a solid rate for a year feels like a win.
What I Like About Vida Savings’ Fixed-Rate ISA
This ISA gives you a guaranteed 4.28% return over 12 months, and because it’s an ISA, all the interest you earn is completely tax-free.
You can open the account with as little as £1,000, and if you want to add more, you can make unlimited deposits within the first 21 days (up to your annual ISA allowance).
Right now, the ISA allowance for 2025/26 is £20,000, and I try to use as much of it as I can every year. Because once the tax year ends, that allowance is gone for good.
Even better, Vida Savings lets you spread your ISA allowance across multiple ISAs in their range, so you can mix and match to suit your goals. For example, keeping some in easy-access savings while putting the rest in a higher rate.
Another reason that I personally like Vida Savings is that they are rated “Excellent” on TrustPilot. Reputation is a pretty strong signal to go by and the reviews speak for themselves!
Why Put Your Money In a Fixed-Rate ISA?
Fixed-rate ISAs are perfect for anyone who wants certainty. Once your rate is locked, it stays the same for the full year, even if the Bank of England cuts interest rates tomorrow.
I also love that Vida Savings’s account is FSCS protected, which means your money (up to £85,000) is covered by the Financial Services Compensation Scheme. That’s peace of mind that your savings are safe, no matter what happens in the wider economy.
How to Make the Most of Your ISA
If you’ve ever let cash sit in a low-interest savings account “for now”, you’ll know how frustrating it is to see it barely move. The trick is to make your money work harder without taking unnecessary risks.
Here’s what I do:
- Pay off high-interest debts first. There’s no point earning 4.28% if you’re paying 20% on a credit card.
- Build a small emergency fund (in an easy-access account). This is your safety net.
- Then, put your longer-term savings, the money you won’t need for at least a year, into a fixed-rate ISA like this one.
Once it’s in, you can just forget about it and let the interest do its thing.
How Much Could You Earn?
Vida Savings has a handy savings calculator on their site.
You can plug in how much you want to save and see exactly how much interest you’ll earn. It’s a great motivator if you like to watch your money grow.
What To Know About Vida Savings’s Fixed-Rate ISA
- 4.28% AER (guaranteed for 12 months)
- Open with just £1,000
- Tax-free interest
- Add funds for 21 days after opening
- FSCS protected (up to £85,000)
It takes less than 10 minutes to open an account, and I love that I can choose between monthly or annual interest payments, perfect if you like to see regular returns.
Final Thoughts
Saving might not sound as exciting as investing, but when you can lock in 4.28% tax-free, it’s a smart, stress-free way to grow your money.
Whether you’re topping up your emergency fund or putting money aside for next year’s holiday, this is one of the easiest ways to make your savings work harder, without lifting a finger.
If you’ve been meaning to sort out your ISA for this tax year, this might be your sign to do it now.
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Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
That’s a decent rate! I’ve not heard of the bank though. What would happen if they disappeared or went under?