Notice Accounts

These types of accounts generally offer a higher rate of interest than a no notice account in return for having to give notice whenever a withdrawal is required.

Providers can require any amount of notice from a week upwards but the most common notice period is 30 to 60 days to make a penalty-free withdrawal. Instant access to your savings can sometimes be given but is likely to be subject to an interest penalty on the account. This is often the loss of interest for the period of notice, which was required to make a penalty-free withdrawal.

eg An account requires you to provide 60 days notice prior to making a withdrawal - If you make an instant access withdrawal on the account, the penalty charged is likely to be 60 days loss of interest on the amount you withdrew.

Advantages

• Rates are usually higher than Easy Access accounts.
• If Bank of England base rate increases - interest paid on the account may increase

Disadvantages

• Penalties are paid for a no notice withdrawal
• If Bank of England base rate decreases - interest paid on the account may decrease