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Up to 84,000 people receive bonuses over £100,000 says Investec Private Bank

21-Apr-2008

> 22% of bonus money will go into savings accounts
> Investec High 5 savings account currently pays 6.31% gross AER on balances of £25,000 or more..

Nearly 84,000 people are expecting to receive monetary bonuses in excess of £100,000 for the 2007/2008 financial year, according to new research1 commissioned by Investec Private Bank (‘Investec’). A further 294,000 expect bonuses of between £50,000 and £100,000.

In total, four out of ten UK employees are expecting some kind of bonus this year, of on average £14,600 each. Average bonuses expected by men are on average 132% more than those expected by women (£19,500 as opposed to £8,400).

The findings highlight that 22% of bonus recipients intend to deposit their money in a savings account, but Investec Private Bank is concerned that many of the rates on these accounts will not be competitive enough. Investec’s research reveals that of the 6.46 million people intend to put all or some of their bonus into a savings account, 93% will use existing savings
accounts. Only 3% said that they would open a new account based on shopping around for a best-buy rate. A staggering one in five said that they would leave their deposit in their main day-to-day bank account.

Linda McBain, head of Banking at Investec Private Bank said, “Competition in the savings market is intense at the moment, and rates of 6% or more are easy to come by. However, there are still many accounts offering derisory returns so it is very important to ensure that your savings are receiving a fair and competitive interest rate.”

The Investec High 5 Account, which currently pays 6.31% gross AER2 and requires a minimum investment of £25,000, pays the average of the top five best-buy accounts as chosen and published by the independent financial product research company Moneyfacts3. The rate is therefore independently calculated giving transparency, meaning clients never again need to shop around for the best rates.

In terms of how people intend to use their bonuses other than putting them into savings accounts,27% said that they would use it to go on a holiday and 22% said that they would use it to clear debts.

Investec Private Bank aims to provide its clients with some of the most consistently competitive rates in the savings marketplace and to be as transparent as possible with them.To find out more about the Investec High 5 Account or Investec Private Bank’s other unique cash products, please call 0845 366 6333 or visit www.investecprivatebank.co.uk/high5

1 Based on an independent online survey conducted by Canvasse Opinion from Experian, on behalf of Investec. A total of 1,053 employed UK adults aged 18 and over, were surveyed between 14th – 20th February 2008.
2 The Annual Equivalent Rate (AER) is a notional rate, which illustrates the contractual interest rate as if paid and compounded on an annual basis and is subject to variation.
3 The rate is based on the average of the top 5 savings rates published on the Moneyfacts website www.moneyfacts.co.uk across the categories of no notice accounts, notice accounts, internet accounts, monthly interest accounts, accounts for the over 50’s and accounts with an introductory bonus. The rate is correct as at 21 April 2008.