Investec launches 5.35% one-year fixed rate savings deal

Investec has upped the rate on its one-year fixed saver account to 5.35 per cent, as competition ramps up at the top of The independent This is Money best buy savings tables.

The Investec account must be opened online and is available on balances between £5,000 and £250,000.

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

Front of the pack: Investec boosted the rate on its one-year fixed account to 5.35%.

As one of the bigger banks in our tables – it is FTSE 250 listed – this deal will no doubt attract savers who will feel safe in the knowledge they are earning a top rate from a familiar savings name. 

Someone putting £10,000 in this deal can expect to earn £535 of interest over the course of a year.

Fixed rates have been on the rise in recent months. At the start of April the average one-year fixed rate was paying 3.84 per cent. Today it has risen to 4.38 per cent.

New best buys are launching on a near weekly basis. Most recently, the Shariah banks, Al-Rayan Bank and QIB UK have led the charge.

Al Rayan is offering a one-year fix paying 5.36 per cent. Savers can either go direct to Al Rayan or to the savings platform, Raisin UK to sign-up.

QIB UK* is offering a 5.35 per cent one-year fix and 5.45 per cent two-year deal – both via Raisin.

Someone stashing £10,000 in its best buy two-year deal will end up earning £1,119.70 of interest over the two-year period.

Andrew Hagger, a personal finance expert at MoneyComms, believes we are now highly likely to see rates rise even further.

He said: ‘Markets are indicating a base rate increase of at least 0.25 percentage points. 

‘If so, I expect easy-access rates to improve further and break the 4 per cent barrier  and one year bonds to hit 5.5 per cent.

‘In terms of the one-year fixes, I think we’ll hit that 5.5 per cent level within a fortnight – competition is fierce right now.’