Top savings accounts relying on bonuses, Investec claims

14 April 2005
Investec Private Bank has released research suggesting that many top saving accounts are increasingly relying on bonuses.

Investec claims that seven of the top ten best buy accounts have bonuses, with an average of 0.59 per cent.

The bank found that the average interest rate for the top ten savings accounts on balances of £25,000 was 5.43 per cent gross.

"There are some attractive returns for savers but it is important that they read the small print so that they understand all of the terms and conditions offered by savings accounts," Linda McBain of Investec warned.

"Many top accounts rely on bonuses and if savers are unaware of this, they can be in for a shock when these expire and their rates fall."

Once the bonuses expire on the seven accounts Investec looked at, their average interest rate falls to 4.74 per cent.

Investec Private Bank began tracking interest rates on savings accounts for balances of £25,000 in February with the aim of making the savings industry more transparent.

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