Investec is looking to shake up the savings market with the launch of a new notice account that gives savers greater flexibility to withdraw money when they want.
'Notice Plus' tries to give savers the best of both worlds – a competitive rate and immediate access to a portion of their savings, without having to worry about penalties or bonus periods.
Savers can choose from a flexible selection of notice periods and immediate-access options to suit them.
The longer the notice period, the higher the rate you get. You can withdraw 10% or 20% of your savings without notice, but this will lower the overall interest rate.
So, if you choose to access 10% of your savings without notice your interest rate will be 0.05% lower. If you decide to take out 20% access to your cash your interest rate will be 0.10% lower.
Notice period options include 35, 65 or 95 days. The interest rates range from 1.3% to a top rate of 1.8%.
An additional loyalty rate of 0.05% is also available if notice isn’t placed on funds for 90 days.
The minimum deposit is £10,000 going up to a maximum of £1 million and you can manage the account online or via Investec’s online banking app.
Savings rates for Investec’s Notice Plus account
|Notice period||Instant access percentage of cash||Interest rate (without loyalty rate)||Interest rate (including loyalty rate)|
'Flexibility will make this product popular'
Recent years have not been kind to savers. With current interest rates so low it can be difficult to know where to put your money.
With a notice account you can dip into your savings as long as you inform your bank in advance. You can earn a higher rate than with an easy-access account but as you can draw the money out they are not quite as high as fixed rate savings bonds which lock your money in over a set term.
Anna Bowes, co-founder savings advice site Savings Champion, says notice accounts offer a good middle ground for savers looking for something in between easy access accounts and fixed rate savings bonds.
She says: “The rates are pretty competitive even with the access element. There is lot of money sitting in easy-access accounts, yet it is unlikely everybody needs that money straight away.
“This account offers notice interest rates with the flexibility of access to some of your money, but you will want to make sure you choose your options carefully to get the best deal.”
Andrew Hagger, a personal finance expert at Moneycomms, adds: “While the minimum £10,000 limit may exclude a few customers, the rates are still very attractive.
“The Investec product will prove popular as it offers flexibility and choice. Rather than the usual 'one size fits all' standard offerings - it will sit well with serious savers and investors as a useful part of a wider portfolio.”
How the accounts compare
95 days - If you choose a notice period of 95 days and the 0% withdrawal option you get a market-leading rate of 1.85% once the bonus is added on. This equals the 1.85% on offer from Gatehouse Bank (Note, this account's rate is an expected profit rate or EPR) and beats Secure Trust Bank’s 90 day notice account at 1.82%.
65 days - The top rate for the 65 day notice period with 0% withdrawal is 1.55% with bonus if you choose to access 0% of your savings. This falls just below the 1.61% for a 60 notice account from Charter Savings Bank and Secure Trust Bank’s 1.60%.
35 days - If you plump for the 35 day notice period and 0% withdrawal the rate is 1.45% with the bonus. This is well above the 1.35% on offer for the 35 day notice account from OakNorth Bank at 1.36% and Aldermore’s 30 day notice account at 1.30%.
Isas - The Investec account also beats notice cash Isas hands down too. The highest paying 95-day notice cash Isa is from Charter Savings Bank at 1.45%, while the next best rate is from Chorley Building Society at 1.38%.