Investec Bank plc has increased the interest rate on its 90-day notice savings account to 5.13 percent, earning an “excellent” Moneyfacts rating.
The account can be opened with a minimum deposit of £5,000 and interest is paid monthly.
Notice savings accounts allow people to withdraw money whenever they need to, but they have to give the bank an agreed amount of notice or they could face penalties.
Commenting on the deal, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “This week Investec Bank plc has increased the rate on its 90-Day Notice Saver, which now pays 5.13 percent gross.
“This may be ideal for savers looking to boost their income but who also don’t mind giving 90 days’ notice to access their funds.
“The deal takes a position in our top tables when compared against other notice accounts currently available. As earlier mentioned, access to this account is subject to 90 days’ notice, so careful planning may be sensible for savers.”
Ms Eastell added: “Overall, this account earns an Excellent Moneyfacts product rating and a place in our top rate tables.”
Savers must be aged 18 or over and up to £250,000 can be invested overall.
But while Investec Bank may be offering a more competitive deal, it isn’t currently the top rate available for a 90-day notice saver.
FirstSave is offering an Annual Equivalent Rate (AER) of 5.4 percent and savers can get started with £100.
Up to £2million can be invested and interest is paid annually on the anniversary that the initial deposit was made. There is no limit to withdrawals, as long as 90 days notice is given.
The Bank of London and The Middle East falls just behind with an Expected Profit Rate of 5.35 percent.
A minimum deposit of £10,000 is required to launch the account and a minimum of £1,000 must be kept in at all times. Profit is paid quarterly and savers must be aged 18 and over.
DF Capital is also offering a competitive interest rate of 5.3 percent on its 90-day Notice account and savers need £1,000 to open it.
Up to £250,000 can be invested overall and interest is applied to the balance monthly.
New research from Shawbrook reveals that a quarter (24 percent) of savers have never switched to a different savings account or opened an additional one, despite the record rates on offer.
Adam Thrower, head of savings at Shawbrook, said: “Holding onto that same old savings account is like leaving money on the table. Loyalty might be costing you big time and it might only take a few minutes to open a new savings account.
“Small differences in rates add up—don’t underestimate it, they pile up faster than you think. Whatever’s holding you back, it’s time to act – those higher rates won’t last forever.”
