Savers can now access a fixed savings bond offering a 5% return over three years, potentially earning £3,000 in interest over the full term. The account, Investec Save's three-year fixed rate saver, pays 5% gross/AER annually and is available for a minimum deposit of £5,000, with a maximum of £250,000.
Market-Leading Rate Since 2024
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.”
Potential Gains and Advice
Eastell noted that even small rate differences can translate into significant 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,” she said.
Account Features and Restrictions
The account can be opened online, with additional deposits permitted only during the first seven days. Withdrawals are not allowed during the three-year term. Eastell cautioned that fixed bonds are suitable only for those confident they won't need access to their cash before the term ends. She also noted that some easy access accounts offer around 5%, making them an alternative for emergency funds.
What Is a Fixed Bond?
A fixed rate bond is a savings account that offers a fixed interest rate for a set period. It is suitable for lump sums not needed for living expenses or emergencies, according to the Co-op Bank.
