Private bank Investec has removed its popular High 5 savings account after attracting a considerable number of new customers. The account was closed to new applications on Thursday, having been one of the highest paying savings accounts since 2003. Although accompanied by a fairly high minimum investment of £25,000, Investec have received millions of pounds in savings deposits since 2003, helping them to diversify into other areas.
The interest rate on the account is determined each week by calculating an average of the best five savings accounts on the market. Savers with a High 5 account this week enjoyed an interest rate of 3.04 per cent.
Investec has also introduced new rules for existing customers, stating that any customers who withdraw funds taking their savings balance to below the £100,000 threshold, will not be able to exceed that figure again.
Director of financial website Candidmoney.com, Justin Modray, said the removal of the account was bad news for wealthy savers, and suggested that the reason for the closure was that Investec were finding the interest rates hard to fund. A similar savings account remains on offer with Nationwide, though that account only pays around 2.61 per cent.
Private Bank Removes High Interest Savings Account
Financial Services > e-banking > Banking news
Private Bank Removes High Interest Savings Account
Fri, 26 Mar 2010
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