Investec Bank offers a 1-year fixed-rate best buy savings plan that pays 1.36 percent
This means that one-year fixed rates are moving up after several challenger banks reduced their rates over the past week.
Gatehouse Bank cut in October its market-leading one year contract at 1.51 to 1.3 percent, while Al Rayan Bank cut earlier this month from 1.45 to 1.25 percentage.
A saver fixing £10,000 with Investec guarantees almost twice the return of the best paying easy access deal.
Investec’s one year deal, which rose from 1.33 to 1.36 per cent, will require a minimum deposit of £5,000 to get started, with maximum £250,000 holding possible.
A saver stashing away the minimum £5,000 in this account could expect to see a return of £68 in interest after one year.
Investec offers Financial Services Compensation Scheme protection and is fully authorised by the Prudential Regulation Authority meaning savers deposits will be protected up to £85,000 and in the case of joint account, £170,000.
A individual saver able to stash away the maximum £85,000 protected under the FSCS could expect to earn £1,163 in interest over the course of a year.
Was there more?
This could be the right job for you if you are looking for a high-paying rate, and you don’t mind having no cash access for twelve months.
Investec says it currently serves 65,000 savers. Its name and stature should give some savers additional confidence.
Cynergy Bank offers the best easy-access, highest paying deal. It pays 0.7%. However, this rate includes a bonus rate at 0.4% for the first year. After that the rate falls to 0.3%.
| Type of account | Taxes 0% | Taxes of 20% | Taxes up to 40% | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| One year | ||||||||||||
| Investec (£5,000) | 1.36 | 1.09 | 0.82 | |||||||||
| Masthaven Bank (£500+) | 1.35 | 1.08 | 0.81 | |||||||||
| Zopa Bank (£1,000+) | 1.35 | 1.08 | 0.81 | |||||||||
| TWO YEARS | ||||||||||||
| Zopa Bank (£1,000) | 1.61 | 1.29 | 0.97 | |||||||||
| Gatehouse Bank (£1,000+) (3) | 1.60 | 1.28 | 0.96 |
Cynergy’s 12-month fixed rate deal is almost twice that of Investec. Cynergy could also change its variable deal at any point.
Notice accounts are for people who may be a bit nervous about losing access to their money, but want to receive a slightly higher interest than in an easy-access bank account.
A notice account can be described as a kind of halfway house that offers both an easy-access and fixed-rate deal.
These accounts allow savers to access their money after a specified notice period of between 30 and 120 day. They can also offer a higher return than an account with easy access.
Investec currently offers a 32-day notice plan at 0.8 per percent.
Savvy savers can further take advantage of this particular deal via a welcome bonus offered by the savings platform Raisin giving savers the chance to boost their savings by £50 when they open and fund an account on its marketplace with a minimum of £10,000.
Raisin offers 72 savings options, including Investec’s 32-day notice period.
Anyone stashing £10,000 in this account via the Raisin platform will therefore effectively see their rate rise from 0.8 to 1.3 per cent for the first year after the welcome bonus has been paid.
Let’s face it, your financial situation will determine what you choose to do.
This could also be dependent on your ability to save money and want the freedom to make changes to your account at any time.
Notably, no current savings account is capable of matching the inflation rate at 4.2 percent.
Rachel Springall from Moneyfacts is a Personal Finance Expert. She said that “Fixed Rate Bonds are an excellent choice among savers seeking the best interest rates. They’re ideal for anyone who wants to store cash for a guaranteed return.
When comparing savings accounts, it is worth noting that notice accounts permit depositing funds less often than fixed bonds. Fixed bonds require an upfront lump sum.
Although cash rates may be prohibitive for some savers. It is worth saving money to have some savings in case of an emergency.
The future could see interest rates rise, therefore savers might want to be careful and choose either notice accounts or easy access accounts.
“As the market improves, consumers should keep an eye on top rate tables so they don’t get disappointed.
THIS IS MONEY’S FIVE BEST CURRENT ACCOUNTS
Santander’s Account 123 LiteYou will be paid Up to 3% Cashback On household bills. There is a £2 monthly fee and you must log in to mobile or online banking regularly, deposit £500 per month and hold two direct debits to qualify.
Virgin MoneyCurrent account offers £150 Virgin Experience Days gift card when you switch and pays 2.02 per cent monthly interest on up to £1,000. To get the bonus, £1,000 must be paid into a linked easy-access account and 2 direct debits transferred over.
Club Lloyds Current Account Pays 0.6% interest on balances of up to £3,999, while those with sums of between £4,000 and £5,000 will earn 1.5% on that balance. There is no cost if you pay £1,500 each month, otherwise a £3 fee applies. Two direct debits must be held.
NatWestNewcomers are welcome £100 when they switch their account and a further £50 if they stay for 9 months. Customers must pay in at least £1,500 in total and log in to its mobile app or online banking by 13 January 2022 for first £100
Nationwide FlexDirectWith account, 2% interest on up to £1,500 – the highest interest rate on any current account – if you pay in at least £1,000 each month, plus a fee-free overdraft. They last one year.
