Notice savings accounts work in a different way to Easy Access Accounts. With these types of accounts, you don’t have the flexibility of withdrawing your savings whenever you like instead you must give your provider an advanced notice that you intend to make a cash withdraw. The notice period will depend on your bank, it usually ranges from between 30 to 120 days.
• Interest rates tend to be higher than those offered on Easy Access Savings accounts.
• You can deposit as much money as you like, whenever you like.
• Higher minimum deposit is required to open an account – usually a minimum of £1,000.
• You are required to give notice of your intention to make a withdrawal or risk being penalised (usually via missed interest or a reduced interest rate).
Why choose a notice savings account?
Notice accounts are suited for those saving up for a specific goal (e.g. saving for a big holiday or to pay the deposit on a property) but want to retain control over how much money you can save each month. It still provides the flexibility to save at your own pace, and the notice period can be useful, it discourages you from withdrawing money whenever you want.