Nearly two out of five (39%) people with savings accounts have fixed rate deals coming to the end of their term in the next 12 months, but most of this is predicted to go back into savings, new research from Investec Save shows.
The average amount savers hold in maturing one-year, two-year and three-year fixed rate savings accounts is estimated at £18,200, with nearly six out of 10 savers saying they have £5,000 or more in these accounts.
Around 27% of savers say their fixed rate accounts will mature in the next three months, while 27% say terms will end in the next three to six months and 21% in the next six to nine months. A further 22% say terms will end in the next nine to 12 months, and three per cent are unsure when they will end.
Once these fixed rate accounts mature, savers are more likely to put their savings back into other accounts, Investec’s research found. Around a quarter (24%) questioned plan to put all their maturing savings back into another fixed rate account and one in five (20%) plan to put at least half back into one of these. Around half (50%) of Investec Save’s Fixed Rate Saver customers plan to put all of their maturing savings back into another Fixed Rate Saver.
Around a third (32%) will put up to a tenth of the money paid out at the end of the fixed rate term into instant access accounts while 33% will put up to a tenth into a notice account.
More than half (52%) say they will use up to a tenth of their maturing savings to clear credit card debts while 51% will use the same amount to pay off some of their mortgage.
David Hunt, Head of Savings, Investec Bank, said: “With nearly £20,000 on average in maturing fixed rate accounts, savers are facing a pivotal moment. Our research shows they’re not just reinvesting—they’re rethinking. Whether it’s locking in new rates, boosting flexibility with notice accounts, or tackling debt, this is a powerful opportunity to make their money work harder.”
Investec Save offers a range of accounts, which do not have any penalty fees or hidden bonus rates, including its Fixed Rate Saver offering 1-Year, 2-Year or 3-Year terms, which offer between 4.30% AER/gross and 4.36% AER/gross*. The Fixed Rate Saver provides simplicity and security for savers. Interest is paid on maturity on the 1-Year and annually on the 2-Year and 3-Year. No withdrawals are permitted until the end of the term, and no further deposits can be made after the first seven days.
Its Online Flexi Saver, which currently offers 4.20% AER (4.12% gross), is a simple and secure instant access savings account, provides instant access to savings, and allows unlimited deposits and withdrawals to a linked current account. This also makes the Online Flexi Saver perfect for unexpected bills that might arise, such as car maintenance or a vet’s bill.
Investec Save’s 90-Day Notice Saver, which offers 4.64% AER (4.54% gross), gives savers a higher rate of interest than its instant access account and no fixed term. It enables customers to save as well as to pay for bills they know are coming up, as they can access savings at any time with unlimited withdrawals by providing 90 days’ notice before withdrawal. It also gives 97 days’ notice before reducing the interest rate on the account. It enables customers to save as well as to pay for bill they know are coming up, as they can access savings by providing 90 days’ notice before withdrawal.
For more information on Investec Save products, visit: https://savings.investec.com/
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.
