Best notice accounts: Today’s latest rates

If you have a notice account, you’ll be required to notify your bank or building society a specified number of days ahead of making a withdrawal, detailing how much you want to withdraw. This notice period, set by the bank, has to pass before your funds are released.

Notice periods can range from seven days to 180, but the most common notice periods are 30, 60 and 90 days. It’s important to choose an account with a notice period that suits you, as it can be a long wait to get your money.

In theory, your patience is rewarded with higher interest rates than you would get with easy- or instant-access savings accounts. But this isn’t always the case, so you should always do some research before committing to a new account.

In this guide, Telegraph Money addresses:

• How we determine the best rates
• The best notice savings accounts
• Expert opinion: Things to consider when choosing a notice savings account
• FAQs

How we determine the best rates

The Best Buy tables show the best savings rates widely available in the market. This means certain accounts are excluded, including those that require minimum deposits of more than £25,000 or are available only to local or existing customers.

The data in these tables is provided by Savings Data Limited and is compiled using automated tracker tools and updates from savings providers. Savings Data Limited then manually checks the information and enters it into a database that feeds the live tables, which update daily.

The savings accounts shown are protected by the Financial Services Compensation Scheme. The information in this article is intended for information purposes and should not be taken as endorsement or advice.

The best notice savings accounts

Use the table below to discover the best notice savings accounts available.

If you decide you don’t want to wait to withdraw your cash, see our guide to the best easy-access accounts. Opting for one of the best current accounts is another way to earn interest while maintaining full access to your money.

Or, if you’d prefer to lock in a guaranteed rate for the next 12 months or more, don’t miss our guide to the best fixed-rate bonds.

For a host of tax-efficient savings options, make sure you check our guide to the best cash Isas.

Expert opinion: Things to consider when choosing a notice savings account

Caitlyn Eastell, of analysts Moneyfactscompare.co.uk, said: “Typically, notice accounts pay a higher rate of interest than easy-access accounts with the benefit of being able to add funds in the account once it’s been opened.

“But an important factor to consider is many providers won’t allow any withdrawals before the end of the notice period and, on the rare occasion earlier access is allowed, may result in a loss of interest.”

Mark Hicks, of investment and savings platform Hargreaves Lansdown, said: “Especially now, when interest rates are declining, notice accounts will typically offer some very attractive rates.

“However, they’re one of the more complicated structures in the savings market. Quite often people don’t realise that they cannot get money out immediately, so they’re saving into a notice account and all of a sudden, they urgently need the money.

“They’re very good for a headline rate, particularly at the moment. But you need to ensure this isn’t money you’re going to need very quickly.”

FAQs

Are notice savings accounts worth it?

Notice savings accounts can be worth it if you can plan your savings withdrawals well in advance. You receive higher interest rates and can usually have unlimited access to your funds – granted, after a bit of a wait.

You can also make ongoing deposits. Unlike some accounts that only accept a single initial deposit, notice accounts allow you to continue adding to your savings whenever you like. Generally, savings will still earn interest during the notice period, but this is worth checking.

For new savers, the notice period may help with money management and preventing impulse buying.

Can you withdraw money from a notice account?

Yes, you can withdraw money from the account, but you’ll need to wait until the notice period passes to receive it. This commonly varies from 30 to 180 days.

Some accounts may impose limits on the number of withdrawals that can be made, while others may have a minimum deposit requirement you’ll need to bear in mind – it is worth checking the account’s terms and conditions to find out.

What are the disadvantages of notice account?

The biggest disadvantage of a notice account is having to wait for a set amount of time before being able to access your funds, which could be an issue if you need money at short notice.