There’s something quite satisfying about knowing that the rate you are receiving was the best rate in the market at the time of taking out the product, and for fixed rate bonds, especially in a such a low interest rate environment, it is imperative to shop around and make sure you get a competitive deal. Well fortunately Investec are here to help with not just one, but two market leading savings rates over three and five years respectively. Not only are the rates on offer currently top of the tables, they also offer a little extra…
Investec 3 Year Base Rate Plus Account – minimum 2.50% AER
For those who want to take advantage of increases to the Bank of England Base Rate but still want the convenience and security of a minimum fixed return, Investec has shown some welcome innovation in the market with their 3 Year Base Rate Plus. The account pays 1% AER/variable above the Bank of England Base Rate, but with a minimum rate of 2.50% AER, so whatever happens you know you will never earn less than this.
The talk of interest rate rises is never far from the spotlight and although the consensus is that this is unlikely to be before next year, a lot can happen over a three year timeframe. This account therefore offers you the chance to take advantage of any future Base Rate rises over the next three years whilst also offering the safety net of a minimum return that is currently market leading for a three year fixed rate.
Interest is not compounded and will be paid into your nominated account annually. No early closure or withdrawals are permitted and the minimum is £25,000. You can apply online and access to account information is via online and telephone banking.
Fair Investment view: “The minimum deposit of £25,000 is a little high but increased minimums have become more common in order to secure the best rates and the 2.50% AER minimum is currently market leading for a three year fixed rate. With inflation slowing to 1.2% for the year to September, the rate has been popular with savers looking for a market leading fixed return and FSCS protection, but who also have half an eye on what might happen to interest rates in the next few years.”
Click here for more information about the Investec 3 Year Base Rate Plus Account »
Investec 5 Year Step Up Bond – paying up to 3.50% AER
For those who want access to the highest fixed rates from their savings and are prepared to tie up their money in order to do so, the Investec 5 Year Step Up Bond pays 3.00% AER interest for the first three years, followed 3.50% AER for the final two years. This equates to 3.20% average AER which is market leading for a five year fixed, by some way.
No withdrawals are permitted during the term of the plan and interest will be paid annually into your nominated account. The minimum is £25,000 and you can apply easily and quickly online. Access to account information is via online and telephone banking.
Fair Investment view: “The fixed rates on offer from the Step Up Bond equate to 3.20% average AER which is market leading for a five year fixed rate bond. With the higher rate paid in the last two years, this bond may also appeal to those who might be waiting for a rate rise as well as those who are worried about potential increases to inflation. The account needs to be open and funded by 26th November so you’ll have to hurry if you’re interested.”
Click here for more information about the Investec 5 Year Step Up Bond »
Investec Bank plc
Investec is an international specialist bank and asset manager with its main operations in the UK and South Africa. Established in 1974, as at 31st March 2014, they currently employ around 8,200 people and look after £109.9 billion of third party assets under management. They have been operating in the UK since 1992 and provide a range of financial products and services and specialise in a number of areas, particularly within the banking sector. Their UK banking operation, Investec Bank plc, looks after £11.1 billion of customer deposits. They are also a market leading provider of investment plans and structured deposits.
What are you waiting for?
Investec Bank continues to offer innovative savings plans which combine a competitive interest rate with efficient service and attractive features. So if you have a minimum of £25,000 to deposit, and you want to take advantage of some of the highest savings rates on the market, these three and five year accounts are certainly worth reviewing. All the Investec savings accounts featured are covered by the Financial Services Compensation Scheme (FSCS).
AER – Stands for the Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.
