Investec High 5 poor value?

barny_100

kittie wrote: »

investec offers extremely good value as part of a varied savings portfolio. I for one don`t want to spend my valuable time, rate chasing, hence my dh and I are both fully invested. For us it goes hand in hand with fixed rate bonds, instant access and various other savings vehicles

Besides that, their customer service is top notch and they treat you like a real person

When the minimum investment is £25,000 you'd hope so!

amcluesent

>When the minimum investment is £25,000 you'd hope so!<

But the teller lets you put your head between them and go "flubble, flubble, flubble". :j

RayWolfe

No thats only with Barclays!

darren72

withnell wrote: »

Note also that now Moneyfacts are including higher bonuses in their league tables, the investec rate will increase over the next week

This sounds very good

twokcc

Thanks for comments , still not sure that this account is good value but will come back to this with some actual interest calculations and examples.
Regarding the comments on interest rate calculations. Although egg were recently offering an instant access account with 3.25% interest so no need to give notice and a better rate then Investec.
Acounts qouted currentlyare
FirstSave 90 Day Notice (annual) 3.25%
FirstSave 90 Day Notice (monthly) 3.20%
Investec Bank plc High 5 3.13%
Chelsea Building Society Call Direct 120 (annual) 3.10%
Chelsea Building Society Call Direct 120 (monthly) 3.06%
Leeds Building Society Online Access Account 3.05%


If you look at the Chelsea account this is a 2 year account with a 120day penalty for withdrawals -so why is that include but for example the AA 2 year account paying 4.35% with 90day penalty notice not included. Not able to find the exact comparison option on moneyfacts that throws up these as top five accounts. Anyone else had any success in knowing the exact criteria that will list these accounts.
My opinion is that as stated in original post I thought this account was a good one to have to save chasing rates however doesn't seem to be providing this. The comparison accounts don't have to be instant access but situation is that you can get an instant access account with nearly as good a rate but the High 5 hasn't kept pace with the better rates that are available on longer term savings.

darren72

The comparisons don't include fixed rate bonds (such as the AA one).

Thanks

agsnu

twokcc wrote: »

If you look at the Chelsea account this is a 2 year account with a 120day penalty for withdrawals -so why is that include but for example the AA 2 year account paying 4.35% with 90day penalty notice not included.

The Chelsea account not a 2 year fixed rate account - it's a notice account. You can withdraw your money without penalty, providing you give 120 days' notice. The AA 2 year account is a fixed rate account, and does not let you get your money out before 2 years are up without penalty in any circumstances.

Now you could argue that there isn't much difference between the two in practice, but they are designed to be different products.

Jake'sGran

I recently invested in a Chelsea fixed rate for 2 years @ 4.4%
which I think is good. I will not need this money and doubt that rates will increase above that in two years. As has been mentioned, chasing rates can get very tedious. The high five has never appealed to me.

twokcc

agsnu wrote: »

The Chelsea account not a 2 year fixed rate account - it's a notice account. You can withdraw your money without penalty, providing you give 120 days' notice. The AA 2 year account is a fixed rate account, and does not let you get your money out before 2 years are up without penalty in any circumstances.

Now you could argue that there isn't much difference between the two in practice, but they are designed to be different products.

Agreed AA is fixed rate account but from documentation for account which they have posted to me,
"you can access your savings at any time subject to 90 days loss of interest on the amount withdrawn"
Appreciate this info not always easy to find but my original point stands that this is basically no different to the Chelsea account(in fact have to give less notice)

So as you say not much different in practice just that its not include in high 5 comparisons

agsnu

twokcc wrote: »

Agreed AA is fixed rate account but from documentation for account which they have posted to me,
"you can access your savings at any time subject to 90 days loss of interest on the amount withdrawn"
Appreciate this info not always easy to find but my original point stands that this is basically no different to the Chelsea account(in fact have to give less notice)

With the Chelsea account you can say "i want my money back in 120 days" and they'll say OK, and give you all your money and interest accrued up to the period *including the 120 days*. That is different to the AA account, where you say "i want my money back" and they give it to you, less 90 days' interest.

That's the difference. Notice vs penalty.