Investec High 5: new instant access add-on

eskbanker

I received a mailshot last week from Investec, headed "an exciting new development for your Investec High 5 Account" and stating that

many of our clients have told us they would like access to at least some of their savings, without having to give three months' notice. We have therefore developed a new account, designed to run alongside your existing High 5 Account, that offers you the opportunity to transfer a portion of your balance straight away.

If you would like to know more about this account, please call our dedicated team on....

The letter gives absolutely no more detail than that about the new account and I searched for any news about this on here and elsewhere but couldn't find any more about it, so curiosity finally got the better of me today and I phoned them.

I can now see why this has received no publicity - they will allow you to withdraw up to 25% of your balance into a new instant access account, which pays interest at.... 0.5%!

An interesting definition of 'exciting'....

SeniorSam

What would be the penalty if the withdrawal was made within 3 months from the High 5 Account. Probably a lot more than 0.5%, so it is a genuine offer. However, if you need it - you need it, so moving part of the account to a second account at 0.5% would be a waste if you never used it. Hopefully you have set enough aside for emergencies and therefore should not need this second account.

Sam

eskbanker

The early withdrawal penalty is exactly 0.5% as it happens!

You're right that it's potentially a viable proposition but only for those with a requirement to withdraw funds from this account within the next few weeks (I think the guy said that the offer lapses in mid June), so that must be a pretty small niche and a group that I can't see why they'd be trying to chase.

I got the impression that they were promoting a one-off transfer of up to 25% of High 5 funds into this secondary account, but for those with funds in standard instant access accounts already it's unlikely to be tempting as somewhere to leave cash other than in transit....

Has anyone taken them up on this?

AlienT

eskbanker wrote: »

Has anyone taken them up on this?

Yes I've just taken up this offer. Wanted to put £15k into NSI inflation proofed certificates and this was the easiest way to free up some cash without incurring penalties. Seems to have worked.

Presumably this is part of Investec's strategy for gradually reducing the balances held in High 5 accounts.

TERMIN8TOR

this offer is tempting me to top-up my high five a/c - I am thinking if their intention is to lower amounts held in this a/c offer may be repeated in future...

Loughton_Monkey

I have a bit with Investec. I looked at the offer as a way of getting some out without the normal 3 months notice. That would be the only 'advantage' to taking up the offer. In my case, however, (a) I don't wish to take any money out without notice, and (b) I only have a little bit more than £25K which is the minimum you must keep in the High 5.