The savings market has been strong throughout the last 18 months, and for the first time in more than a decade, consumers have a worthwhile range of savings options to choose from.
As always, much of the focus tends to be on the interest rates paid on easy access products or fixed rate bonds, but there is an often overlooked third option that’s worth considering.
If you are happy to give up a little flexibility on access, then you can earn a decent premium above the best easy access rates and still earn monthly interest if that’s what you desire.
The 90-day savings account from Investec Bank with a rate of 5.25%, now tops the best buy tables.
The best easy access savings rate is currently 5.13% and the best deal for a 1-Year fix stands at 5.30%, so the pricing offers a decent ‘halfway house’ option for savers who don’t want to lose access to their cash for a full 12 months.
The ideal cash savings portfolio should contain a mix of products to give the level of access needed at the best overall rate, so a combination of easy access, notice savings and fixed rate bond(s) is a great mix by which to achieve this.
Before the first of 14 base rate hikes started in December 2021 the best deal on 90-day notice savings paid a mere 0.95% but the Investec best buy is some 4.30% higher – an indication of just how much rates have improved in the last 2 years.
