Best 4 Year Business Bond Rates UK

Note

Eligible deposits with UK institutions are protected by the Financial Services Compensation Scheme up to a maximum level of protection of £85,000 per business per institution. The deposits of most non-financial services businesses are covered up to the £85,000 limit.

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4 year business bonds explained

Is fixing for four years a good idea?

Fixing for four years can be ideal for those who don’t mind losing access to a portion of their business savings for the long-term. They ensure guaranteed returns, helping business owners plan for the future as they know exactly how much interest they’ll earn over the period.

The drawback is that this term isn’t as popular as some shorter or longer-term deals, which means there are fewer options to choose from and rates aren’t always as high as for five-year business savings bonds. In some cases one-year business bonds can offer higher rates as well, but here there’s the risk that rates could fall over the term, and you’ll have to fix onto a lower rate after just 12 months. This means you may not earn as much interest over the longer-term, so it’s important to consider your options thoroughly, and you may want to have several different pots to maximise any potential returns.

Can I withdraw my savings during the term?

Not usually. Most business savings bonds expect your deposit to remain untouched for the full four-year period, though some may allow further additions for a limited time. You’ll often be expected to deposit a larger amount than for personal fixed rate bonds as well, so make sure you can commit the funds for the duration.

Can the interest rate change during the term?

No. Business savings bonds offer a guaranteed fixed rate, which means it cannot change during the term no matter what happens to savings rates elsewhere in the market. This means that even if rates fall, you’ll still be earning interest at the higher rate for the full term. Yet there’s also the risk that rates could improve in the space of four years, so it’s important to weigh up your options.

Which bank offers the best rate?

This can vary, but it’s important to note that the larger, high street banks and building societies aren’t always active in this market, which means most of the chart spots are taken by lesser-known brands such as UBL UK and Danske Bank. This doesn’t mean they should be overlooked though, as challenger banks can often be a great choice for business savings. Just make sure to check that you’ll meet the criteria, and always compare rates using our chart to ensure you can find the best business savings bonds in the UK.