Investec launches fixed term deposits Print
News - Banking
Investec Bank has launched two new fixed term deposits for individual investors.

A one year fixed term deposit and a two year fixed term deposit are permanent additions to Investec’s existing product suite and currently pay 3.55% gross AER and 4.00% gross AER respectively.

Interest on the new accounts is paid at maturity. In line with the rest of the Investec product suite, depositors will need to deposit a minimum of £25,000 to open an account. 

Investec analysis of Moneyfacts data reveals that the average return on a one year fixed rate product for £25,000 or more is currently 2.79% Gross AER, and is 3.31% for a two year product. 

Linda McBain of Investec Bank said: “These two new fixed term deposits offer savers a fixed and highly competitive rate of return over one and two years. Given continuing market uncertainty, many of our clients are demanding a variety of products in which they can deposit lump sum savings with guaranteed returns.  Many savers recognise that longer term products can maximise their returns in this low interest rate environment.

“These two accounts will enhance the existing range of cash deposit products we have available to individuals, enabling investors to benefit from consistently competitive returns.  We are anticipating high demand for these products.”

Philip Shaw, chief economist, Investec Bank said: “The uncertainties facing the UK are so great that the economy will require all the support possible from low interest rates for the foreseeable future. The Bank of England’s official Bank rate looks set to remain at 0.5% at least throughout next year and in all likelihood over the majority of 2013 as well.”

The Investec one year and two year fixed term deposits follows the recent launch of the Three Year Base Rate Plus Issue 2 savings product and is part of a wide range of cash management products focused on providing competitive savings and transactional accounts for individuals with balances of £25,000.