Savers are benefiting from increased competition for their cash as rates surge across the market with fixed rate bonds leading the way, new analysis* from Investec Save reveals.
Over the past three months, average rates on top-paying savings accounts have risen by up to 0.51%, according to Investec’s analysis, with most of the accounts reviewed increasing the interest they pay. Investec Save says the rises should encourage savers to review where their cash is held and whether their current mix of savings accounts still meets their needs.
The biggest increases have been seen in 2-Year Fixed Rate bonds with the average interest rate paid by the top 60 accounts rising 0.51% to 4.53% AER** in the past three months. Nearly three out of four (73%) accounts have increased rates.
Across the top 60 1-Year Fixed Rate bonds the average has increased by 0.49% to an average 4.57% AER with more than nine out of 10 (92%) boosting rates. Among 3-Year Fixed Rate bonds the average has increased by 0.49% to 4.48% with 87% of the top 60 providers raising rates.
In the 90-Day Notice account sector the average among the top 30 accounts has increased by 0.13% to 3.18% AER while among 1-Year Fixed Rate ISAs the increase is 0.47% to 4.38% AER among the top 60. Around 87% of providers have increased rates in the past three months.
Investec Save has consistently boosted rates across its range of accounts with increases on its 1-Year, 2-Year and 3-Year Fixed Rate Saver and its 1-Year Fixed Rate Cash ISA now offers 4.68% AER.
David Hunt, Head of Savings, Investec Bank, said: “Savers are the winners as providers increase rates across the board, with two-year products seeing the biggest increases.
“The speed at which rates are rising highlights the competition among providers and gives savers a much wider range of options on where to deposit their money and in which type of accounts. People need a range of accounts whether it’s fixed rates or instant access depending on what they need the money for.”
Investec Save’s range of accounts can be opened online in minutes and are fully managed online with no hidden fees or charges. They include its Fixed Rate Saver with 1-Year offering 4.40% AER**, 2-Years offering 4.50% AER** or 3-Years offering 4.55% AER** Interest is paid on maturity of the 1-Year term and annually on the 2-Year and 3-Year terms. No withdrawals are permitted until the end of the term in each case, and no further deposits can be made after the first seven days.
Investec Save’s 1-Year Fixed Rate Cash ISA, offering 4.68% AER, enables customers to lock in fixed rates for longer, helping them grow their savings and make the most of their tax-free ISA allowance each tax year. It can be opened with a minimum of £1,000 and customers earn tax-free interest on deposits fixed for one year.
A 90-Day Notice Saver is also available, which currently offers 4.00% AER**, offers unlimited deposits with withdrawals subject to 90-days’ notice. This is ideal for those expenses that you can plan for, such as a holiday or wedding.
In addition, the Online Flexi Saver, which currently offers 3.79% AER**, is a simple and secure instant access savings account. Unlimited deposits and withdrawals are allowed. This makes the Online Flexi Saver worth considering for unexpected expenses that might arise, such as car maintenance or a vet bill.
Fixed Income Insights: For deeper analysis on bond markets and rates strategy for advisers, explore IFA Magazine’s latest Fixed Income Insights publication.
- *Investec Save analysis of Moneyfacts data https://moneyfactscompare.co.uk correct as of May 26th 2026 compared with 20th February 2026
- **AER stands for the Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once a year. The AER is intended to be an indicative rate to help you compare the return on different savings products.
