UK fixed ISA better than US CDs

[nun]

I've been comparing fixed income products in the US and UK as I plan to move back to the UK at some point and while my tax deferred savings will be in the US I want my 4 year cash bucket to be in the UK in pounds to avoid currency fluctuations. The options look quite good. An individual saving account (ISA) is free of UK tax (not free of US though) and a nice ladder can be constructed. Here are some typical interest rates for various terms.


Term min Interest rate
1 year £500 +2.80%
2 years £500 +3.65%
3 years £500 +3.70%
4 years £500 +4.40%