Best for
Market leading interest rate (1.25%)
Notice savings accounts
Let your bank know in advance if you need to withdraw your money, to earn interest at a better rate.
What's in this guide?
Best for
No hassle
Best for
Savings marketplace
Best for
Automatic budgeting
All savers face the same dilemma: when am I going to need the money I’m putting aside? Should I lock it away in a fixed rate bond or keep it at hand in an easy-access savings account?
Not everyone knows that there’s a middle ground between the two. If you can’t make up your mind, notice savings accounts make for a nice compromise.
Compare notice savings account rates
Table: sorted by interest rate, promoted deals first
What are notice savings accounts?
Notice savings accounts are savings accounts from which you can withdraw your money whenever you need it, as long as you give adequate notice to your bank. The notice required will depend on your account’s terms and conditions.
As access to the account is possible but only under certain conditions, the interest rates offered by notice accounts normally stand somewhere between those for easy access accounts and fixed rate bonds.
How do notice savings accounts work?
Notice savings accounts are not so different from easy access savings accounts, but you must make sure you know the terms and conditions inside out before applying, because the notice period makes things a tad more complicated:
- Application. Usually a pretty straightforward process, you can apply online or in person by providing your personal details and a proof of ID.
- Deposits. You can make deposits into the account whenever you like. Be aware that some accounts can only be opened with an initial deposit of £1,000 or more.
- Interest. It can be paid monthly or annually, into the account itself or into a current account.
- Withdrawals. You can only withdraw your funds or close the account after the agreed notice period has passed. Some accounts may also restrict how many times a year you can do it.
- Notice period. This can vary hugely, but for most notice savings accounts, it’s between 30 and 90 days. The longer the notice required, the higher the interest rate is likely to be.
Should I get one?
Notice savings accounts are weird little creatures. They aren’t hugely popular because if you need your savings to deal with an emergency, 30 days tend to be too long a wait anyway. People often prefer keeping emergency funds in an easy access savings account or in a current account and extra savings in a fixed rate bond, where they can earn more interest.
However, notice savings accounts can become handy if you already have a home for your emergency funds, but are unsure of your medium-to-long-term plans. For example, if you think you may need to pay the deposit for a house or buy a new car in the next 12 months. These kinds of decisions take time anyway (but not a full year!), so notice accounts are a good option.
Finally, they are also a good idea if you think you may want to make extra deposits into your account: fixed rate bonds don’t allow it after the first week or so from account opening.
How to compare notice savings accounts
There aren’t loads of notice savings accounts available on the market, but here’s a basic list of features to check out when comparing options:
- Interest rate. It will come as no surprise to you that the higher it is, the better for your finances.
- Notice period. A shorter one means easier access to your savings but may also come with a lower interest rate.
- Minimum initial deposit. Some accounts can be opened with as little as £1, but that’s not always the case.
- Where and when interest is paid. It may not make a massive difference, but you still want to check if it’s monthly or yearly and whether you can choose between having it sent to the savings account itself or to another account. If it’s paid into the account itself, you’ll also earn interest on your interest.
Are notice savings accounts safe?
Most notice savings accounts are covered by the Financial Services Compensation Scheme, which protects your savings up to £85,000 per account. Make sure you double-check that that’s the case with the account you’re considering.
Frequently asked questions
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.
More guides on Finder
-
The 7 best stock trading apps and platforms in the UK
We’ve taken a look at some of the best trading apps in the UK and explained who they’re best suited to. Our table compares fees and services too.
-
Compare mobile phone insurance
Get a quote in seconds and save on your phone cover.
-
Business bank accounts for non-UK residents
We’ve put together some tips and information on how to open a business bank account in the UK as a non-resident.
-
Business bank accounts for contractors
Contractors usually need a business bank account, so we’ve put together a guide on how to find one that works for you.
-
Business bank accounts with overdrafts
Business overdrafts can be a useful safety net, but be aware of fees and charges.
-
Can you run a business from home?
Looking to set up your own business but not quite ready to get a proper office? You can definitely run your company from home, once you’ve taken care of a few details.
-
Peugeot 3008 insurance group
Find out which insurance group the Peugeot 3008 falls under and how much it costs to insure.
-
Land Rover Freelander insurance group
Find out which insurance group the Land Rover Freelander falls under and how much it costs to insure.
-
Very Boxing Day sales 2021
Snap up some great deals in the Very Boxing Day sales with discounts on electronics, fashion, gym wear and more.
-
Renault Twingo insurance group
Find out which insurance group the Renault Twingo falls under and how much it costs to insure.