Investec launches best buy one year fixed savings account paying 3.3%

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Investec has boosted the rate on its one year fix from 2.9 per cent to 3.3 per cent as savers turn to short-term fixed term deals as Bank of England base rate rises push them higher. 

The Investec Fixed Rate Saver can be opened online and will pay the top rate on balances between £5,000 and £250,000.

Saver deposits are protected up to £85,000 per individual under the Financial Services Compensation Scheme, or £170,000 for couples. 

Someone who stashed away £5,000 in the deal could expect to earn £165 in interest over the course of a year.

Interest on the account is paid at the end of the year-long term and no withdrawals are allowed until the end of this period. No further deposits can be made after the first seven days.

The rate hike comes just a month after Investec launched its market leading 90-day notice savings account paying 2.1 per cent on balances between £5,000 and £250,000.

A notice account is a halfway house between an easy-access and fixed rate account, allowing savers to withdraw their funds following a notice period.

They can offer savers a better return than they might otherwise achieve with an easy access account. 

Today’s additional rise means Investec has climbed to the top of the independent This is Money best buy savings table for one-year fixed rate accounts. 

Last week Shawbrook Bank launched the best one-year fixed rate deal paying 3.25 per cent following moves by Monument, SmartSave and Atom Bank earlier in the week announcing deals paying 3.2 per cent.

Average savings rates have risen for six consecutive months, according to Moneyfacts data, the first time on record.

The average easy-access rate has risen to 0.77 per cent and stands at its highest point in nine years.

The average one-year fix has risen to 2.21 per cent and stands at its highest level since January 2013, while average longer-term fixed rates rose to 2.61 per cent – the highest point since December 2012.

However, despite rising savings rates, the value of your money continues to fall because inflation has soared to 10.1 per cent a year, the highest level in 40 years – and it is forecast to rise to beyond 13 per cent in the coming months.

It is expected that the base rate will rise from its current 1.75 per cent to somewhere between 3 and 4 per cent in 2013, which is likely to mean savings rates will continue to nudge higher.   

Savers can currently get 3.31 per cent over 18 months with Shawbrook Bank and 3.47 per cent over two years with SmartSave.

In terms of easy-access, savers can get 1.9 per cent with Al-Rayan Bank – but can also boost their rate to 2.06 per cent using savings platform Raisin*.