Investec bank offers five percent interest on one year fixed savings account | Personal Finance | Finance

Investec Bank plc is offering the highest returns for savers looking to put money away for at least one year.

The bank has increased the rate on its 1 Year Fixed Rate Saver.

The account has earned an “excellent” rating due to its high rate, which makes it highly competitive with other banks and building societies.

As the base rate increases, savers are advised to shop around and get the best deals available.

While interest rates keep changing, fixed savers allow people to lock in the rate offered when an account is opened – adding another layer of certainty to savings.

Britons can lock up their money for a certain period and earn a guaranteed return.

At the current interest rate, a £5,000 deposit would generate interest of £250.68 after 12 months. This would give a final balance of £5,250.68.

Commenting on the deal, Rachel Springall, financial expert at Moneyfactscompare.co.uk, said: “Investec Bank plc has increased the rate on its 1 Year Fixed Rate Saver, having increased a week ago.

“Now paying five per cent, the market has improved its position within its sector against its peers and could be an attractive option for savers looking to lock in their money for a year for guaranteed result.

“Those who invest must have £5,000 to deposit in advance and, as is usual with fixed accounts, savers will not be allowed to access their funds early.

“Overall, the deal earns an excellent Moneyfacts product rating.”

The minimum deposit required is £5,000 and the maximum is £250,000. During the year, savers are not allowed to make any withdrawals.

This fixed term savings account is opened and managed online. Brits can apply in minutes and deposit their money.

Once the account is open, savers will have seven calendar days to fund it with at least £5,000 from their linked account.

If people do not meet the minimum balance by the end of the seven days, Investec will return any cash and interest earnings and automatically close their account.

Allica Bank is also offering high returns to savers who want to put money away for at least a year.

Allica Bank is currently offering an Equivalent Annual Rate of five percent.

The account can be opened online, however, the minimum deposit is £10,000 0 slightly higher than Investec. Interest is calculated daily and applied to the balance annually.

Savers must be aged 18 or over and can be UK residents, and invest up to £250,000 in total.