Savers could take up the offer of an account with a 5% return on a fixed bond. The account means savers could make £3,000 in interest over the full term. The rate gives people a chance to secure a return at a time when costs are rising and people are feeling the pinch.
The Investec Save three-year fixed rate saver, which pays 5% gross/AER on a yearly basis, is available on a three-year deal. Caitlyn Eastell, personal finance analyst at Moneyfactscompare.co.uk, said: “For the first time since 2024, the market-leading fixed bond now pays a 5% return, with savers now able to lock this return in for three years.”
She added: “This marks a positive spin that gives them the chance to make their cash work harder.”
Eastell says: “Even if the gap may seem small, it can quickly translate into hundreds of pounds in extra interest.
“Around £750 extra is not a small amount and teaches a valuable lesson that savers don’t need to have more money to get a better return, instead they may just need to move money they already have,” reports GB News.
The account can be opened with a minimum of £5,000 and a maximum of £250,000 can be put into the account. To open it, customers can do this online.
Additional deposits for the account are only permitted during the first seven days of opening the account. Withdrawals are not allowed during the three-year term.
Eastell says that fixed bonds are only suitable for those confident they will not need access to their cash before the term ends.
She says: “Some of the best easy access rates also offer around five per cent, making them an ideal alternative for those needing money at short notice, such as for emergency funds.”
A fixed rate bond is a type of savings account that offers a fixed rate of interest for a set period of time.
For people who have some money available that they don’t need for living expenses or emergencies, they may want to consider investing a lump sum in a fixed rate bond, also known as a fixed term deposit, the Co-op Bank says.
