Investec High Five or High Ten?

buffman

High 5 issue 2 is similar to issue 1 except with a longer (6 months) notice. The High 10 has a 3 months notice. The question is which is the best account to go for? Currently the interest rate differential between the two new accounts is 0.06%. It is a shame that there is no past data between the average rate of Moneyfacts top 10 and top 5 paying accounts to help work out whether it is worth going for the high 5 with a much longer notice period or the High 10.

qpop

The current rate is 2.25% AER which is mediocre at best.

The highest paying non-bonus(clean) unlimited withdrawals account with no notice period is Virgin Money paying 2.85% AER. The highest bonus-paying unlimited withdrawals account pays 3.1% AER (Santander).

Why would you take the onerous conditions attached with regards to withdrawal notice periods?

edit: Apologies was looking at the "business high 5"

The correct AER is 3.17% for the High 5 account, but my point still remains. The "time value" of the six month waiting period for withdrawal outweighs the perceived advantage of not having to move your cash around.

You can get 3.6% AER for a 1 year bond, or 3.1% AER instant access with no withdrawal limits.

G_M

qpop wrote: »

edit:
The correct AER is 3.17% for the High 5 account,

Or 3.22 for High Five issue 1.

LeoC

This product could be interesting in case a new product is launched with a higher interest rate that pushes up this "average" of the moneyfacts website. However, the criteria seems very subjective, why isn't the Nationwide 3.12% or the BM Savings 3.2% instant savings accounts in the list of current averages?

If a new high rate instant savings account is launched but dismissed by the calculation using some random criteria, that would be annoying.

The flipside also is that Shawbrook's 3.45% notice account is holding the average up, and they just withdrew their fixed term savings, so if this one would go as well, the average rates would drop by 0.1% or so easily (for the High 5) assuming a 3% or so new account would come in to replace it.

I'd get a one-year fixed rate (say, 3.6% with FirstSave) and lock in a guaranteed rate.

LeoC

ps: another idea is why not go for Shawbrook's 120 day notice at 3.45%?