Investec launches the best purchase deal: is this now the perfect middle ground for savers looking for higher rates without having to repair?
- Investec increased the rate on its 90-day Notice Saver account from 3.71% to 4.25%
- The deal can be opened online for balances between £5,000 and £250,000
- Offers unlimited withdrawals, no set term, but subject to 90 days notice
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Savers choosing between the convenience of an easily accessible account and better returns on fixed-rate deals might choose an option in the middle.
Investec has interest on it 90-Day Notice Saver Account by 0.54 percentage point to a market-leading 4.25 percent.
The account can be opened online and is available on balances between £5,000 and £250,000.
Ahead: Investec increased the rate on its 90-day notice account to 4.25%, so it will continue to pay the highest rate currently available on comparable 90-day notice accounts.
Depositors’ deposits are protected up to £85,000 per person under the Financial Services Compensation Scheme.
A cancellation account is a middle ground between an easily accessible and a fixed interest account.
They allow depositors to withdraw their money after a notice period, typically between 30 and 120 days, but often offer depositors better returns than easily accessible accounts.
Investec’s deal, which can be opened online, offers the highest interest rate of any cancellable savings account currently available.
It also offers unlimited deposits and withdrawals albeit with 90 days notice.
Someone putting £20,000 into Investec’s deal could earn £866 in interest over the course of a year.
The next best withdrawal accounts on offer come from Oxbury Bank, Gatehouse Bank, Cynergy Bank, and StreamBank.
Oxbury Bank has a 120 day deal and pays 4.11 percent and 95 days notice pays 4.01 percent, while Gatehouse Bank has a 120-day deal that pays 4.1 percent and a 95-day deal that pays 4.05 percent.
Is a cancellation account a good option?
Those planning to use them as a home for their emergency savings should think carefully about the notice period.
If the boiler breaks down and needs to be replaced or the roof starts leaking, for example, waiting 90 days for the money won’t help much.
That said, the best notice accounts offer savers an improvement over the rate they get from keeping their money in an easily accessible account.
The average cancellation account pays 3.07 percent, according to Moneyfacts, compared to the average easy-to-access deal that pays 2.1 percent.
In terms of the best easily accessible deals, the best rate offered is 3.71 percent, courtesy of the savings and investment app, Chip.*
Fixed rates offer higher returns, but require the money to be put away, but this means putting in access for six months or more.
The best one-year fix pays 5 percent, courtesy of Allica Bankbut shorter solutions are also worth considering.
Savings platforms such as Raisin UK and Hargreaves Lansdown lead the way in this department.
For example, Raisin has a 4.5 percent deal for nine months,* while Hargreaves Lansdown’s Active Savings platform is a six-month deal pay 4.35 percent* and a nine-month deal pay 4.47 percent.*