Written by Karen Bryan
Update 20 August 2013 – This account is no longer avaiable ot new cusomters. Existing account holders will be transferred to a new Issue High 5 Account (which pays the average of the top five paying account with a three month notice period) on 4 December 2013.
I came across the Investec High 10 Account during my recent research into how to get the highest possible rates of interest on our savings. The rate of interest paid on this account is based on the average of the top ten paying accounts listed on the Moneyfacts website. This average rate is updated every week, normally on Tuesdays. At present the account is paying 1.79%. The downsides are that you need to deposit a minimum of £25,000 and that you have to give three months notice to withdraw your cash.
You could match the rate of interest paid by the Investec High 10 Account in a 95 day notice Shawbrook Bank Notice Account. However, if Shawbrook Bank reduce the interest rate, then you are stuck with that lower rate of interest for the 95 day notice period.
Having your cash in the Investec High 10 Account means that if only a couple of providers drop their rates, the average rate of interest paid to you won’t fall by as much as if you had your cash in one of the accounts in which the rate drops. I doubt if that’ll be much protection, as generally, once one or two of the highest rates drop, other providers follow suit with their rates of interest.
Personally, I reckon that the instant access Nationwide Loyalty Saver Account which pays 1.7% variable (as I’ve been a member for more than fifteen years), requiring an opening deposit of £1,000, is a better bet for us. But I’ll be checking out the Investec High 10 Account if the rate paid on the Nationwide Loyalty Saver drops.
Rates of interest correct on 15 August 2013.