Investec PLC (LSE:INVP) has begun offering 5.82% interest on its newly launched fixed two-year savings account.
Looking to capitalise on a shift by savers from instant to fixed rate accounts, Investec announced the account on Wednesday.
Savers locking away between £5,000 and £250,000 will be able to access the rate, according to Investec, which outdoes the Bank of England's 5.25% base rate.
“Individuals have clearly become more active about managing their savings and are looking at moving into longer-term deals as rates have climbed,” Investec retail savings head David Hunt said.
“We’d encourage all savers to take a moment to review their savings and the interest rate they’re currently receiving - thinking about what they need the money for and when.”
Experts from Moneyfacts echoed the sentiment, noting that savings rates may not stay so high for long amid uncertainty over the direction of the Bank of England's base rate.
According to the Office for National Statistics, the UK consumer price index rose by 6.7% in the year to September, unchanged from August.
Analysts worry this might lead to another interest rate hike as the Bank of England fights inflation.
Pantheon Macroeconomics analyst Samuel Tombs felt another hike is unlikely as rising fuel and education costs were the outliers in the ONS’s Wednesday figures.
Base interest of 5.25% could well be the peak of the Bank of England’s rate hikes, he said, likely translating to a fall in savings rates in the coming months.
Moneyfacts spokesperson James Hyde said that “people should be aware that popular accounts may be pulled or their rates could decrease”.
“Swiftness to secure the best option is key,” he added.