Investec Save has launched a Fixed Rate Saver paying 5% gross/AER annually on a three-year bond, described as a market-leading return not available in the UK since 2024. Savers can invest between £5,000 and £250,000, with funds locked away for the full term. Additional contributions are allowed for up to seven days after opening. The account is online-only.
Expert reaction
Caitlyn Eastell, Personal Finance Analyst at Moneyfactscompare.co.uk, welcomed the product. She 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: "In recent years savers have been left short-changed in real terms, but this marks a positive spin that gives them the chance to make their cash work harder."
Ms Eastell noted that for some, securing a competitive guaranteed return is crucial as household budgets remain under pressure. She calculated that someone with £20,000 to save at 5% for three years could secure around £3,000 in interest, compared with about £2,240 based on the current average new savings rate of 3.60%. "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," she said.
Cautions and alternatives
Eastell cautioned that fixed bonds are for those comfortable locking away money for the full term. "Savers should ensure they won’t need to access their cash before committing," she said. She noted that some easy access rates also offer around 5%, making them an alternative for emergency funds. "The most competitive deals can be short-lived, so those considering the switch would be wise to act sooner rather than later."
