Savers can protect cash from predicted rate cuts with 90-day savings account

In a time of falling interest rates savers with longer notice periods, such as 90 days, are better protected from rate cuts as if rates fall, their savings rate won’t decrease for a further 90 days or more.  This also gives them the opportunity to look for better deals before the notice period ends.  Compared to fixed-rate accounts, which lock up savings for a year or more without allowing deposits or withdrawals, 90-day notice accounts offer savers much more flexibility.  

Investec Save’s 90-Day Notice Saver is still offering 4.64% AER^***, which is well above the Bank of England’s base rate and remains unchanged. However, if interest rates were to be cut in the future, customers would still benefit from the current rate for up to 97 days^**** – over three months – before they start receiving the new rate. This is the standard notice period of 90 days, plus an additional seven days. If the rate is increased, customers would benefit from this increased savings rate straight away.

David Hunt, Head of Retail Savings at Investec Save, said: “In a falling interest rate environment, it’s even more important for savers to ensure their money is in the best possible place and notice accounts with longer notice periods offer the best of both worlds.

“Our 90-Day Notice Saver still offers savers the flexibility to make deposits and withdrawals (with 90 days’ notice), but at the same time provides reassuring protection from future rate cuts. 90-Day savers know that if rates fall their current rate won’t change for a further 97 days, which also gives them time to think through what’s the best next step for their savings.”

Investec Save’s 90-Day Notice Saver Account can be opened with a balance of at least £5,000 and you can make unlimited deposits up to a total balance of £250,000. It can be opened online in minutes and is fully managed online with no hidden fees or charges.

^* https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp.
^** https://www.bbc.co.uk/news/articles/cwyqyp7xp12o
^*** AER stands for the Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once a year. The AER is intended to be an indicative rate to help you compare the return on different savings products.
^**** If Investec Save reduces the interest rate on its 90-Day Notice Saver it will notify customers at least 97 days before it starts paying the new rate. This is the standard notice period of the account plus 7 days. If customers close their account during this time, they need to give the same amount of notice required for making a withdrawal. Investec will close the account on the day the notice period expires. If it increases the rate Investec Save will tell customers as soon as possible after it starts to pay the new rate.