Investec Launches Best Buy One-Year Fixed Rate Savings Account Paying 1.36% As Short-Term Offers for Savers Start to Rise Again
- Investec Increases Rates From 1.33% to 1.36% To Become Market Leader Over One Year
- The best easy access offer offered by Cynergy Bank currently pays 0.7%
- Notice accounts can offer savers a perfect compromise between the two
Investec Bank has launched a one-year fixed-rate best-buy savings contract that pays 1.36%.
This means that one-year fixed rate deals are on the rise again, after a number of competing banks cut rates in recent weeks.
Most notably, in October, Gatehouse Bank cut its market-leading one-year contract by paying 1.51 to 1.3% while at the start of the month Al Rayan Bank also cut its deal by 1.45 at 1.25%.
A saver securing Â£ 10,000 with Investec guarantees almost double the return of the best paid, easy access deal.
Investec’s one-year agreement, which has gone from 1.33 to 1.36%, will require a minimum deposit of Â£ 5,000 to start, with a maximum of Â£ 250,000 of possible holding.
A saver who hides the minimum of Â£ 5,000 in this account could expect an interest return of Â£ 68 after a year.
Investec offers financial services clearing regime protection and is fully authorized by the Prudential Regulation Authority, meaning deposits of savers will be protected up to Â£ 85,000 and in the case of a joint account, Â£ 170,000 .
An individual saver able to set aside the maximum of Â£ 85,000 protected by the FSCS could expect to earn Â£ 1,163 in interest over the course of a year.
What else is on offer?
If you are looking for a high rate of pay and are willing to be without access to your money for 12 months, this could be for you.
Investec claims to currently serve 65,000 savers and its name and stature will likely give some savers more confidence.
The best easy access and paid offer is offered by Cynergy Bank pays 0.7%, although this includes a bonus rate of 0.4 percent for the first year, after which the rate drops to 0.3 percent.
|Account type (minimum investment)||0% tax||20% tax||40% tax|
|Investec (Â£ 5,000)||1.36||1.09||0.82|
|Masthaven Bank (Â£ 500 +)||1.35||1.08||0.81|
|Zopa Bank (Â£ 1,000 +)||1.35||1.08||0.81|
|Zopa Bank (Â£ 1,000)||1.61||1.29||0.97|
|Gatehouse Bank (Â£ 1,000 +) (3)||1.60||1.28||0.96|
An economical fix with Investec is guaranteed almost twice the return of the Cynergy agreement over 12 months and furthermore, the variable Cynergy agreement may change at any time.
For those who are a little apprehensive about giving up access to their money, but want a slightly higher rate than with an easy-to-access account, there are also notice accounts to consider.
The notice account is essentially a sort of intermediary house between an easy-to-access or a fixed-rate offer.
They allow savers to withdraw their funds after a notice period, typically between 30 and 120 days, but can offer savers a better return than they could otherwise get with an easy-to-access account.
Investec, for example, currently offers a 32-day notice account paying 0.8 percent.
Savvy savers can also take advantage of this special offer via a welcome bonus offered by the Raisin savings platform which gives savers the opportunity to increase their savings by Â£ 50 when they open and finance an account on its place of market with a minimum of Â£ 10,000.
Raisin, currently offers savers a choice of 72 savings offers, including Agreement with Investec’s 32-day notice period is a.
Anyone who hides Â£ 10,000 in this account via the Raisin platform will therefore effectively see their rate drop from 0.8% to 1.3% for the first year after payment of the welcome bonus.
In the end, what you decide will depend on your circumstances and your willingness to no longer have access to your money for a certain period of time.
It may also depend on whether you are a saver who wants the ability to add money to the account as and when you want without restrictions.
It should also be noted that no savings account can currently come close to the recent inflation figure of 4.2%.
Rachel Springall, a personal finance specialist at Moneyfacts, said: âFixed rate bonds are a common preference among savers looking for the highest interest rates in the market and are ideal for savers looking to save money. money set aside for a guaranteed return.
âThose comparing different savings accounts may also appreciate that most notice accounts will allow them to deposit funds little and often, unlike fixed bonds which typically require an initial lump sum at the time of application.
âWhile cash interest rate levels can be a deterrent for some savers, it’s always worth considering setting up a savings account to put money aside in an emergency.
“Interest rates could rise in the future, so savers will want to be careful and use either easy-access accounts, notice accounts or short-term bonds, instead of longer-term investments.”
“As the market continues to improve, it would be wise for consumers to watch the highest rates closely and apply quickly so as not to be disappointed.”
THIS IS THE FIVE OF THE BEST MONEY CURRENT ACCOUNTS
Santander 123 Lite Account will pay up to 3% cash back on household bills. There is a monthly fee of Â£ 2 and you need to log into mobile or online banking regularly, deposit Â£ 500 per month and take two direct debits to qualify.
Virgin money current account offers a Â£ 150 Virgin Experience Days Gift Card when you trade and pay 2.02% monthly interest on up to Â£ 1,000. To get the bonus Â£ 1000 must be paid into a linked easy-to-access account and 2 direct debits transferred.
Lloyds Club Current Account pay 0.6% interest on balances up to Â£ 3,999, while those with amounts between Â£ 4,000 and Â£ 5,000 will earn 1.5% of this balance. There is no charge if you pay Â£ 1,500 per month, otherwise a charge of Â£ 3 applies. Must have two direct debits.
NatWest will give newcomers Â£ 100 when changing accounts and an additional Â£ 50 if there are 9 months left. Customers must pay at least Â£ 1,500 in total and log into its mobile app or online banking by January 13, 2022 for the first Â£ 100
Nationwide FlexDirect account comes with 2% interest up to Â£ 1,500 – the highest interest rate on any checking account – if you pay at least Â£ 1000 each month, plus a no charge overdraft. Both benefits last for one year.