One in seven savers caught out by “extinct” best-buy accounts, research reveals

Of those savers who have been caught out by extinct best-buy deals, 56% said they had fallen victim to this problem more than once in the past 12 months. Moreover, more than a quarter (26%) recalled making three or more failed attempts over the past year to move money into a savings account that had vanished.

Investec found that just over half (51%) of these people were trying to open a specific fixed rate account at the time, before discovering it was no longer available. More than a quarter (28%) were attempting to open a particular instant access savings account, while 13% had set out to open a specific notice account.

David Hunt, Head of Retail Savings at Investec Save, said: “It can be difficult for savers to know when to take the leap and switch to better paying accounts, particularly in recent years when we have seen a significant rise in interest rates and an influx of new accounts and providers in the best-buy tables. With the expectation that interest rates are likely to reduce over the next year, many of these are now disappearing and the top deals don't often stick around for long. Savers should look at providers which offer rates that are consistently competitive rather than short-term deals if they want peace of mind that they’ll be earning a good return on their savings.”

Investec Save’s 90-Day Notice Saver gives savers at least 104 days’ notice before reducing the interest rate on the account. In the event of a rate decrease, this gives consumers enough time to make a change if they wish ensuring that they are in control. It also offers unlimited deposits with withdrawals subject to a 90-day notice period.

Investec Save offers a range of accounts, which do not have any penalty fees or hidden bonus rates, including its Online Flexi Saver and Fixed Rate Saver offering 1-Year, 2-Year or 3-Year terms.  The Online Flexi Saver is a simple and secure instant access savings account, provides instant access to savings, and allows unlimited deposits and withdrawals to a linked current account.

The Fixed Rate Saver provides simplicity and security for savers. Interest is paid on maturity on the 1-Year and annually on the 2-Year and 3-Year. No withdrawals are permitted until the end of the term, and no further deposits can be made after the first seven days.

 

^* Investec Bank commissioned Viewsbank to survey 1,106 adults aged 18-plus between 21st and 24th June 2024. The sample represented the demographic profile of the UK. Some 82% or 902 people surveyed said they have one or more savings accounts.