Compare 4 year fixed rate bonds
A 4 year fixed rate bond could be a great way for you to guaranteed returns on a sum of money you do not mind not accessing for 4 years.
Another great potential advantage of a 4 year fixed rate bond is that you will be protected from your bank suddenly changing your interest rate, although the flipside of this is that your interest rate deal may be overtaken by better offers during the course of your 4 year agreement.
All of this points to the need to really take the time to compare fixed rate bonds before committing your money, a task that we hope the tables on this page will make easier.
What are 4 year fixed rate bonds?
4 year fixed rate bonds are a form of savings account which offer you a guaranteed interest payment over the 4 year term. The longer the period of time generally the higher the interest payment paid.
Advantages of Fixed Rate Bonds
- The interest rate offered is guaranteed for the 4 year term of the bond. This is unlike instant access savings accounts where the interest rate can go down or up at short notice.
- Different banks and building societies will have different views on medium to long term interest rates. If interest rates rise more slowly than expected a fixed rate bond may give you a better return than what you could expect from an instant access account.
- Some fixed rate bonds provide flexibility e.g. 1 withdrawal over the term.
- Fixed rate bonds range from 2 months to 5 years in duration so you can choose a term that suits your circumstances
- Many fixed rate bond providers offer online access so you can see how much interest you are earning.
Disadvantages of Fixed Rate Bonds
- The benefit of enjoying a higher rate of interest must be weighed against tying up your capital for a fixed term. If you need access to your capital before maturity this may not be possible and if it is there may be interest penalties.
- If interest rates rise over the 4 year term of the investment you may find the interest rate on your capital is no longer competitive compared to new offerings in the market.
- Some fixed rate bond providers require a high minimum deposit e.g. £500