Investec Save has boosted the rate on its one-year fixed account to 4.5 per cent making it the best buy in the independent This is Money best buy tables.
The rate edges a one-year fix from challenger bank LHV, which offers a 4.46 per cent rate.
Locking your savings away in return for a fixed interest rate is one way to beat future base rate cuts.
While savings rates aren’t explicitly tied to the base rate of interest, providers usually update their variable rates in response to a base rate change.
The Bank of England has voted to cut the base rate three times this year.
The next base rate decision is due on 18 December, and some experts believe a cut from 4 per cent is more likely following a drop in the inflation rate to 3.6 per cent in October.
Many experts predict further cuts throughout 2026, with Investec’s economists believing the base rate could fall to 3.25 per cent by the end of 2026.
Fixing gives you certainty over your rate at the expense of locking your cash away
How does Investec Save compare with other options?
If you’re willing to lock your money away for a year, Investec Save is currently offering the top one-year fixed rate.
Investec Save is part of Investec, a large banking provider and investment manager.
One caveat is you must have a minimum of £5,000 to open the account, but you can save as much as £250,000.
These are some of the top one-year fixes currently available. Interest is paid at maturity for each of these accounts and you’ll have no access to your money for the duration of the fix. You can open each of these online:
- Investec Save – 4.5 per cent: £5,000 minimum balance, £250,000 maximum.
- LHV Bank – 4.46 per cent: £1,000 minimum balance, £1million maximum. Must have LHV current account.
- DF Capital – 4.45 per cent: £1,000 minimum balance, £250,000 maximum.
Unlike Isas, regular fixed-rate savings accounts aren’t shielded from tax. This means you need to pay tax on interest earned above your personal savings allowance, which is £1,000 for basic rate taxpayers and £500 for higher rate taxpayers.
If you still have some of your £20,000 Isa allowance available, Isas should be your first port of call for your savings.
Trading 212* is currently offering a best-buy 4.56 per cent interest rate on its cash Isa for new customers, which includes a fixed 0.71 per cent 12-month bonus.
The underlying rate is variable – but the fixed bonus means you should still have a good chance of beating the base rate over the 12 months.
By comparison, Investec Save currently has a one-year fixed rate cash Isa paying 4.27 per cent.
> Read more: Our best cash Isa savings rates
SAVE MONEY, MAKE MONEY
4.56% cash Isa
4.56% cash Isa
Trading 212: 0.71% fixed 12-month bonus
Sipp cashback
Sipp cashback
£200 when you deposit or transfer £15,000
Top Isa without bonus
Top Isa without bonus
Straightforward 4.55% cash Isa with no boost
£100 cashback
£100 cashback
5% cashback on investments, up to £100
£20 gift card
£20 gift card
Hold £1,000 after three months in Plum’s cash Isa
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