Investec Save has hiked the rate on its 2-Year Fixed Rate Saver to a “highly competitive” 4.95% AER. The bank is already offering what it describes as one of the “market-leading” rates on a 3-Year Fixed Rate Saver, paying 5.00% AER.
It became the first three-year account in the savings market to pay 5.00% AER in more than two years, according to Investec Save analysis of Moneyfacts’ data. Investec Save’s 2-Year Fixed Rate Saver boost of 0.15 percentage points comes after a 0.30 percentage point rise at the end of July.
David Hunt, head of savings at Investec Bank, said: “Fixed-term accounts can be attractive for savers who are comfortable putting their money away for a set period and want certainty over the return they will receive.
“By increasing our two-year rate to 4.95% AER, alongside the 5.00% AER available on our three-year account, we are giving savers a choice of highly competitive rates depending on how long they want to fix for.”
A catch is that Investec Save’s range of accounts can only be opened and managed online. Interest is paid on maturity of the 1-Year fixed rate term which pays 4.7% AER and annually on the 2-Year and 3-Year terms.
No withdrawals are allowed until the end of the term in each case and no further deposits can be made after the first seven days.
Investec said its 1-Year Fixed Rate Cash ISA, which currently pays 4.60% AER, locks in higher rates for longer, helping savers grow their money and “make the most” of their tax-free ISA allowance each tax year.
This option is available to all customers, whether they are opening a new ISA to fund using their current annual allowance or transferring in an existing cash ISA from another provider.
A 90-Day Notice Saver is also available. This currently offers 4.00% AER, allows unlimited deposits and withdrawals subject to 90 days’ notice.
An Investec spokesman said: “This is ideal for those expenses that you can plan for, such as a holiday or wedding.”
Investec Save’s Online Flexi Saver currently offers 3.79% AER. The instant access savings account allows unlimited deposits and withdrawals.
The spokesman said: “This makes the Online Flexi Saver worth considering for unexpected expenses that might arise, such as car maintenance or a vet bill.”
This article is for information purposes only and does not amount to financial advice.
