Latest Savings Commentary

Income is king

Oliver Roylance-Smith / 15 May 2012

Investing for income is always a popular investment theme, never more so than in recent months with income solutions ruling the roost over the ISA season for both the cash ISAs and investment ISAs. ... Read more

7% potential annual income, capital protected

Oliver Roylance-Smith / 10 May 2012

"The latest Fair Investment Income Deposit Plan offers capital protection plus the potential to earn 7% for each year the FTSE 100 remains between 4,500 and 7,000 points (yesterday’s clos... Read more

The savings dilemma and the rise of alternatives

Oliver Roylance-Smith / 01 May 2012

The economic landscape continues to create a real dilemma for savings and put a spotlight on the fixed rate bond. With yields on these lowering amid continued pressures on getting the most out of yo... Read more

4 Year Fixed Rate Bonds

Compare Latest 4 Year Fixed Rate Bond Deals

Find the best 4 year fixed rate bond that suits your circumstances can really help you make the most of your savings - if you can commit to locking your money away for 4 years, use our easy comaprison tables below to compare some of the latest rates from leading providers and apply online:

Fixed Rate Bond Selection

Account	Interest Rate (AER)	Term	Apply
5 Year Fixed Rate Bond	4.20%	5 Years	Apply Now >
Earn 4.20% Gross/AER fixed for 5 years. Open with £1. Withdrawals allowed but are subject to a loss of interest charge.			Apply Now >
Vanquis Bank 3 Year Fixed Rate Bond	3.61%	3 Years	Apply Now >
Earn 3.61% gross/AER fixed for 3 years. Save £1,000 - £250,000. No withdrawals during the term. Individual or joint accounts available			Apply Now >
2 Year Fixed Rate Bond	3.60%	2 Years	Apply Now >
Earn 3.60% Gross/AER fixed for 2 years. Open with £1. Withdrawals allowed but are subject to a loss of interest charge.			Apply Now >
1 Year Fixed Rate Bond	3.00%	1 Year	Apply Now >
Earn 3.00% Gross/AER fixed for 1 year. Open with £1. Withdrawals allowed but are subject to a loss of interest charge.			Apply Now >

Alternatives to Fixed Rate Bonds

Provider	Plan Name	Deposit Taker	Term	Maximum Potential Return	More Info
	FTSE 100 3 Year Deposit Plan	Investec Bank plc	3 years	17.25%	More Info >
3 year structured deposit plan Capital protected Target return of 17.25% Available as a Cash ISA & for ISA transfers Also available to businesses, charities and trusts Plan designed to be held for full term May close early if oversubscribed
	Deposit Kick Out	Royal Bank of Scotland plc	Up to 6 years	9.50% per annum	More Info >
Structured deposit plan with a term of up to 6 years Capital protected Available as a Cash ISA & for Cash ISA transfers Also available to businesses, charities and trusts Returns linked to the performance of 5 FTSE 100 Companies Plan designed to be held for full term May close early if oversubscribed
	Growth Deposit Plan	Royal Bank of Scotland plc	6 Years	7.60% per annum	More Info >
6 year structured deposit plan Capital protected Available for Cash ISA & Cash ISA transfers Also available to businesses, charities and trusts Growth is not guaranteed Plan designed to be held for full term May close early if oversubscribed
	FTSE 100 Kick Out Deposit Plan - Option 2	Investec Bank plc	Up to 5 years	6.00% per annum	More Info >
5 year structured deposit plan Capital protected Potential for early maturity after years 2,3 and 4 Available as a Cash ISA & for ISA transfers Also available to businesses, charities and trusts Plan designed to be held for full term May close early if oversubscribed
	FTSE 100 Deposit Growth Plan	Investec Bank plc	5 years	No limit	More Info >
5 year structured deposit plan Capital protected Potential to return 1.05 x FTSE 100 growth Available as a Cash ISA & for ISA transfers Also available to businesses, charities and trusts Plan designed to be held for full term May close early if oversubscribed
	Growth Deposit Bond	Cater Allen	6 years	50%	More Info >
6 year structured deposit plan Capital protected Target return of 9.00% or if greater 1 x any FTSE 100 growth (capped at 50%) Available as a Cash ISA & for ISA transfers Also available to businesses, charities and trusts Plan designed to be held for full term May close early if oversubscribed
	Enhanced Growth Plan	Santander UK plc	6 years	40%	More Info >
6 year structured deposit plan Capital protected 4 x any rise in the FTSE 100 capped at 40% Available as a Cash ISA & for Cash ISA transfers Also available to businesses, charities and trusts Plan designed to be held for full term May close early if oversubscribed
	Annual Locked-In Return Plan	Santander UK plc	6 years	39%	More Info >
6 year structured deposit plan Capital protected 6.5% potential annual return Available for Cash ISAs & Cash ISA transfers Also available to businesses, charities and trusts Plan designed to be held for full term May close early if oversubscribed
	FTSE Protected Growth Plan		6 years	35%	More Info >
6 year structured investment plan Capital protected Potential for early maturity growth return of 35% Available for ISA transfers Also available to businesses, charities and trusts Plan designed to be held for full term May close early if oversubscribed

Important Information: Structured deposits offer you the potential to earn higher returns than you would with a regular savings account. Your returns are based on the performance of an index or commodity. If the investment does not perform well you may receive no income or capital growth, but you can be confident that your capital will be repaid. You have no access to your deposit during the term of the account, typically 3 to 6 years but your original capital will be repaid in full at the end of the term. In the event that the deposit taker is unable to repay your initial investment and any returns stated you may be entitled to compensation from the Financial Services Compensation Scheme (FSCS) depending on your individual circumstances.

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.

Fixed Rate Bonds – Our view

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

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

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