Top savers losing out

Savers with more than £25,000 stashed away saw their interest rates plummet 0.5% between February and May this year.

A study of 725 savings products by private bank Investec found accounts with a balance of £25,000 or more had their interest rates cut by an average of 0.516% between 1 February and 1 May 2009.

Instant access accounts were even harder hit, with interest rates plunging by an average of 0.717%.

Investec published the research to promote its High 5 Savings account, which pays interest in line with the rates of the UK’s highest paying accounts.

“Our latest index shows the average rate savers would have received for a deposit of £25,000 or more between February 1st and May 1st was 0.89 per cent, which is 2.2 per cent less than the interest rate on our High 5 Account,” said Linda McBain, Investec head of banking.

“It is important to closely monitor the rate of interest you are receiving on your savings and if you feel that it is no longer attractive, switch to a better paying account.”

The Investec High 5 account currently pays interest at 3.11% and requires a minimum balance of £25,000.

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