Overview
- Investec launched a three-year fixed-rate bond paying 5% AER on Wednesday, giving savers a market-leading option that would pay roughly £750 more on a £20,000 deposit than the current average three-year fixed rate.
- Moneyfacts shows the average new three-year fixed bond pays about 3.60%, a gap that makes the Investec deal materially more competitive for shoppers who can lock money away.
- The Investec Save product requires a £5,000 minimum, caps deposits at £250,000, allows top-ups only during the first seven days after opening, is managed online, and does not permit withdrawals until maturity.
- Analysts warn the bond suits only savers who can lock funds for three years, note that some easy-access accounts already pay close to 5% for emergency cash, and say top deals can be withdrawn quickly so customers should review options before moving money.
- The return marks the highest market-leading fixed bond since 2024 and reflects bond-market moves driven by expectations of higher interest rates after recent government fiscal signalling, a dynamic that could keep savings rates under active pressure.