Lloyds Bank has clarified key rules and timeframes for two of its accounts after a customer query highlighted confusion over deposit restrictions. The bank responded to a customer who opened a one-year fixed rate ISA in December 2025 and was unable to deposit additional funds in the new tax year.
The customer, acting on behalf of their mother, explained they believed they could deposit another £20,000 once the new tax year began. However, Lloyds confirmed that for fixed rate ISAs, deposits are only allowed within the first 30 days, up to the £20,000 annual limit. The bank advised that a new ISA could be opened to deposit additional funds.
Lloyds' terms state that customers must deposit £500 or more within 30 days of opening the account, after which no further deposits are permitted. The one-year fixed rate cash ISA currently offers 3.7% interest, with an additional 0.6% for qualifying Premier Account holders or a 0.1% bonus for those with maturing fixed rate ISAs.
The two-year fixed rate ISA offers 4.3% interest. Early closure or transfer of funds incurs penalties: 90 days' interest for the one-year account and 180 days for the two-year account. Interest can be paid monthly or annually.
Savers should note that from April 2027, the ISA allowance will change: cash deposits will be capped at £12,000 per year, with the remaining £8,000 reserved for stocks and shares ISAs. Those aged 65 and over will retain the full £20,000 allowance.
