Investec Bank increases interest rate on fixed savings account to 4.6% | Personal Finance | Finance

Fixed savers help add another layer of certainty to saving, as these accounts enable people to lock in the interest rate offered at the time of opening. Investec Bank is now offering savers much higher returns with an Annual Equivalent Rate (AER) of 4.6 percent on its One Year Fixed Saver, earning itself an “excellent” Moneyfactscompare rating.

Despite living costs remaining high, new research by TSB found building up a savings buffer remains a high priority for Britons, as savings balances rose six percent while current account balances fell by four percent in the months from October 2022 to February 2023.

And with consecutive Base Rate rises taking shape as the Bank of England works to stem the UK’s staggering 10.1 percent inflation rate, interest rates on savings accounts have become increasingly competitive nearly month-on-month.

Based on Moneyfactscompare’s recent analysis, finance expert Rachel Springall said: “Compared to a year ago, savers get a return of almost three percent more on the top one-year fixed bond.”

Investec Bank’s One Year Fixed Rate Saver, offering an AER of 4.6 percent, can be opened with a minimum deposit of £5,000 and up to £250,000 can be invested overall.

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Interest is calculated daily and paid in one fixed payment with the balance at the end of the 12-month term.

According to Investec Bank’s calculations based on the current interest rate, a deposit of £5,000 would generate interest of £230.58 after 12 months, providing a final balance of £5,230.58.

Savers must have a UK residential address and be over 18 to open, and withdrawals are not permitted throughout the term.

Commenting on the deal, Moneyfactscompare.co.uk’s Ms Springall, said: “Investec Bank plc has increased the rate on its One Year Fixed Rate Saver this week, which now pays 4.6 percent.

Close Brothers Savings’ One Year Fixed Rate Bond is also placing high with an AER of 4.6 percent.

This account can be opened with a minimum deposit of £10,000 and up to £2million can be invested overall.

Interest is calculated daily and paid annually. Withdrawals are not allowed, so savers will have to be happy to leave the money in the account until the end of the fixed term.