Investec has launched a new fixed-rate savings account paying a market-leading 4.62 percent AER.
Savers can invest between £5,000 and £250,000 in the account, which has been designed to offer more long-term saving options as consumers increasingly look for fixed rate deals.
Research from Investec Bank shows nearly two out of five (38 percent) savers plan to increase the proportion of the savings they hold in fixed rate accounts compared with instant access accounts in the next 12 months.
The study also found around 41 percent of savers have cash in fixed rate accounts. Additionally, over half of them (61 percent) have increased the proportion of their savings in these accounts compared with instant access in the past 12 months.
Investec’s client data shows a continued shift towards longer-dated deposit products. Between March and September 2023, the proportion of its UK savings deposits that were in fixed term accounts increased from 36 percent to 42 percent.
David Hunt, head of retail savings at Investec, commented: “As the expectation of upcoming rate cuts grows, we are seeing growing interest from savers in fixed rate accounts, as they look to lock in good rates.
“The launch of our Three-Year Fixed Rate Saver expands the options for consumers looking for certainty in their savings and builds on our existing range of accounts designed to meet the different needs of savers.
“We’d encourage all savers to think about what they need their money for, and when, as well as reviewing the interest rates they receive.”
Interest on Investec’s new Three-Year Fixed Rate Saver is paid at the end of the first year, the end of the second year and at the end of the term, with various options when accounts reach maturity.
It can be opened easily online by savers aged 18 and over. However, no withdrawals are permitted until the end of the three years, and no further deposits can be made after the first seven days.
The new launch expands Investec’s range of accounts for savers, which includes a one-year and two-year fixed rate saver, as well as an Online Flexi Saver for instant access and a 90-Day Notice Saver.
The One-Year and Two-Year Fixed Rate Save pay 5.15 percent Annual Equivalent Rate (AER) and 4.75 percent AER respectively on balances between £5,000 and £250,000.
Interest is paid at the end of the term on the One-Year account, and at the end of the first year and the end of the term on the Two-Year account. No withdrawals are permitted until the end of the term, and no further deposits can be made after the first seven days.
Its Online Flexi Saver pays an interest rate of 4.70 percent AER monthly on balances of between £5,000 and £250,000, provides instant access to savings, and allows unlimited deposits and withdrawals to a linked current account.
Meanwhile, the Investec 90-Day Notice Saver pays 5.25 percent AER on balances of between £5,000 and £250,000. It also offers unlimited deposits with withdrawals subject to a 90-day notice period.
