Investec launches best buy notice deal: Is this now the perfect halfway house for savers seeking higher rates without having to fix?

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Savers deciding between the convenience of an easy-access account and better returns on offer from fixed-rate deals could plump for an option in the middle. 

Investec has boosted the interest rate on its 90-Day Notice Saver account by 0.54 percentage points to a market leading 4.25 per cent.

The account can be opened online and is available on balances between £5,000 and £250,000.

Ahead of the pack: Investec boosted the rate on its 90-Day notice account to 4.25% ensuring it continues to pay the highest rate currently available on comparable 90-day notice accounts.

Saver deposits are protected up to £85,000 per individual under the Financial Services Compensation Scheme.

A notice account is a halfway house between an easy-access and fixed rate account. 

They enable savers to withdraw their funds following a notice period, typically ranging between 30 and 120 days, but often offer savers a better return than easy-access accounts.

Investec's deal, which can be opened online, offers the highest rate of interest of any notice savings accounts currently available.

It also offers unlimited deposits and withdrawals, albeit subject to a 90-day notice period.

Someone stashing £20,000 in Investec's deal could expect to earn £866 in interest over the course of a year.

The next best notice accounts on offer come from Oxbury Bank, Gatehouse Bank, Cynergy Bank and StreamBank.

Oxbury Bank has a 120 day deal paying 4.11 per cent and a 95 day notice deal paying 4.01 per cent, while Gatehouse Bank has a 120 day deal paying 4.1 per cent and a 95 day deal paying 4.05 per cent. 

Is a notice account a good option? 

Those intending to use them as a home for their emergency savings need to think very carefully about the notice period.

If the boiler breaks down and needs replacing or the roof begins leaking, for example, waiting 90 days for the cash isn't going to help much.

That said, the best notice accounts offer savers an improvement on any rate they'll get by keeping their cash in an easy-access account.

The average notice account pays 3.07 per cent, according to Moneyfacts, compared to the average easy-access deal paying 2.1 per cent. 

In terms of the best easy–access deals, the best rate on offer is 3.71 per cent, courtesy of the savings and investing app, Chip.*

Fixed rates offer higher returns but this will require locking the money away, but this will mean surrendering access for six months or more.

The best one-year fix pays 5 per cent, courtesy of Allica Bank, but shorter fixes are also worth considering. 

Savings platforms such as Raisin UK and Hargreaves Lansdown are leading the charge in this department.

For example, Raisin has a 4.5 per cent nine-month deal,* while Hargreaves Lansdown's Active Savings platform has a six-month deal paying 4.35 per cent* and a nine-month deal paying 4.47 per cent.*