Best 4 Year Fixed Rate ISAs | Rates Up To 4.05%

Depositor Protection

Eligible deposits with UK institutions are protected by the Financial Services Compensation Scheme (FSCS) up to a maximum level of protection of £85,000 per person per institution. All new savings or bank accounts provided to UK customers are now covered by the FSCS.

Disclaimer

All rates subject to change without notice. Please check all rates and terms before investing or borrowing.

Provider Links

‘Go To Provider's Site’ links are where we have an arrangement with a provider so you can move directly from our site to theirs to view more information and apply for a product. We also use ‘Speak to A Broker’ links where we have an arrangement with a preferred broker to move you directly to their site. Depending on the arrangement we may receive a modest commission either when you press a 'Go To Provider's Site' or 'Speak To A Broker' button, when you call an advertised number or when you complete an application following a link from our website.

Favourites

By clicking the heart icon next to each product will mark that product as a favourite. A product will be remembered as a favourite until you deselect it or for 14 days (assuming you have functional cookies enabled). There is an option to filter/sort by ‘Favourites First’ which will bring your favourites to the top of the chart.

Four-year fixed rate cash ISAs explained

A four-year fixed ISA works in the same way as any other fixed ISA.

You deposit a sum of money into the ISA for a four-year term and, because the interest rate is fixed, the return on your money is guaranteed. And, as with any ISA, you won’t need to pay tax on this interest.

Some four-year ISAs only allow you to make one deposit upon opening, while others allow you to add to your account for a limited period.

However, it’s important to think about how much you deposit because, if you want to withdraw your money before the end of the four-year term, you will face a penalty. This is usually a loss of interest.

Once the four-year term ends, you can choose what to do with your money. The provider will contact you with some available options and, if you do nothing, your savings will often be moved into a variable rate ISA.

Everyone has an ISA allowance of £20,000 that they can deposit across one or more ISAs each tax-year.

Should I consider fixing for a shorter term?

It’s up to you to decide whether a four-year ISA is right for you, or if you should fix for a shorter term.

It may be worth opting for a short-term fixed ISA if you’re not comfortable locking away your money for as long as four years. You should only consider putting savings into a longer-term fixed ISA if you have sufficient savings to draw on should you face an emergency expense or a loss of income, for example.

You may also want to think about the direction that interest rates could go in the future. If you lock your money away for a long period, you could miss out on a higher rate of interest if interest rates rise.

But, on the other hand, if interest rates fall, locking into a longer-term fixed ISA before they drop could mean you get a better return than if you chose a shorter-term ISA.

Ultimately, if you can afford to do so, it may be worth putting your savings in a combination of short-term and long-term fixed accounts, as well as easy access accounts.

Alternatives to four-year ISAs

Instead of a four-year ISA, you could consider a five-year ISA. This means you won’t be able to access your money for an additional year, but you will typically have a wider range of accounts to choose from. They may also pay higher rates than four-year ISAs.

Or, if you prefer to lock away your money for a shorter period, you could consider a three-year ISA or a two-year ISA. For an even shorter-term, one-year ISAs are a popular option for savers.

If you want to be able to draw on your savings when needed, there are easy access ISAs and notice ISAs to choose from.

ISAs are appealing because the interest on the account is exempt from tax. But, if you’re not in danger of going over your Personal Savings Allowance (PSA), you may find better interest rates on standard savings accounts, including easy access accounts and fixed-rate bonds.