Interest rates: Good news for savers as bank increases ‘competitive’ interest rate | Personal Finance | Finance


Savers have been hard-hit in the recent year as many providers drastically slashed their interest rates in response to the COVID-19 crisis. Triggered by the Bank of England’s 0.1 percent base rate decision, interest rates have remained low ever since. There have, however, been some opportunities for savers to grow their cash, but many will need to be more proactive about this matter than they were previously.

As the economy starts to recover from the crisis, banks appear to be wading into the waters of improving their interest rates.

And a financial provider which has taken the next step in improving its rates is Investec.

The banking group is “enhancing its position in the instant access savings account market” through increasing its interest rate today.

The increase is applicable to its Online Flexi Saver account, described as a “simple and secure” option which is easily accessible.

READ MORE: Savings: How you could boost your money as interest rates hit ‘low’

Out of 134 accounts of this kind, 43 were found to pay less than 0.1 percent AER, with 19 only paying a measly 0.01 percent AER.

The average return on an easy access account was found to sit at 0.16 percent AER.

The Investec offering, therefore, could be potentially enticing to those who are less willing to lock their cash away and still want a decent return. 

Samantha Booysen, Head of Digital Savings at Investec, commented on the matter.

The instant access account can be opened and managed online, and Britons will need to provide their sort code and account number of their current account, as well as their driving licence or passport.

To be eligible, one must be 18 or over, have a UK address and be solely a resident in the UK for tax purposes. 

There are another number of options currently available on the market with a competitive rate when compared to others.

At present, leading the pack on easy access accounts is Marcus by Goldman Sachs is offering 0.5 percent on its easy access account, with Nationwide offering 0.45 percent.

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