The High 5 issue 2and High 10 savings accounts from Investec offer the average of the top savings accounts, so will always offer a great return!
If you can't be bothered constantly searching around for the best homes for your savings, then I may have the answer.
Investec has two versions of its very clever savings accounts, which promise to ALWAYS offer a competitive rate, no matter what rival providers do.
The High 5 Account
The High 5 issue 2 Account was last seen a couple of years ago, and was relaunched back in February. The rate it offers is the average of the top five accounts, based on figures from the independent financial research firm Moneyfacts.
That rate is determined by using the five highest rates from savings accounts from any of the following categories:
- No notice accounts
- Notice accounts
- Internet accounts
- Monthly interest accounts
- Over 50s accounts
- Introductory bonus accounts
So currently the rate on offer from the High 5 issue 2 is a respectable 3.15% AER. That rate is then reviewed each Tuesday.
The High 10 Account
The High 10 Account works in the same way, except that the rate is based on the top 10 accounts in the market.
So its current rate is 3.11% AER.
Why it’s a good idea
There are a number of reasons that accounts that work in this way are attractive to savers. Firstly, it takes away the stress of always shopping around for a new savings deal whenever top new accounts are launched. With the Investec accounts, you’ll never get the market-leading rate. However, you will always get a very good rate. So you sacrifice a little bit of interest in return for an easier life and peace of mind.
That certainly appeals to me!
A related perk is that you benefit from the many savings accounts offering introductory bonuses, without needing to worry about your interest rate collapsing in a year’s time!
It’s not for everyone
Inevitably, there are a few issues with these accounts which mean they won’t be for everyone.
Perhaps the most obvious is that these accounts require a pretty hefty deposit – the minimum deposit is a whopping £25,000 on both. That rules out a lot of savers.
And then there’s the fact that you won’t enjoy instant access to your cash should you need to get your hands on it. With the High 5 issue 2 Account the notice period is six months, though this falls to three months for the High 10 Account.
I need access
If you need to keep your savings within arms’ reach at all times, then an easy access savings account is a better bet.
Below are the five easy access accounts offering the best return at the moment.
|
Account |
AER |
Minimum investment |
|
3.15% (includes 1.15% bonus in first year) |
£1 |
|
| ING Direct Savings Account | 3.10% (includes 2.56% bonus for first year) | £1 |
|
3.06% (includes bonus of 2.06% in first 12 months) |
£1,000 |
|
|
3.05% (includes 1.55% bonus in first 12 months) |
£1,000 |
|
|
3.01% (includes 1.36% bonus in first 12 months) |
£1 |
As you can see, only the Coventry account matches that of the Investec High 5, and that's only for the first year thanks to a 1.15% bonus!
Locking your money away
If you really want to get a better return on your cash you simply have to lock it away for a while. Obviously, the longer you can lock your cash up for, the better the rate you’ll enjoy on your cash. The trouble is, what looks like a great rate today might be pretty mediocre in a year or two, particularly given base rate is only going to go up.
That’s why I’d be very wary about putting my money in a bond stretching for more than a couple of years.
This account has been updated for April 2012.