Interest and earnings on notice accounts

Interest rates up to 2.75% AER at Raisin UK

  • Keep your account open for as long as you want and move your savings after the end of a notice period

  • Choose from a range of notice periods

  • Open with a single deposit and earn competitive variable interest rates

Home › Savings accounts › Notice accounts

The rundown
  • Variable rate: Notice accounts pay a variable interest rate that may fluctuate in response to changes to the Bank of England base rate 
  • Restrictions: Accounts with longer notice periods and more restrictions tend to pay higher rates of interest
  • Payment date: Interest is typically paid to you on termination of your notice account

How is interest earned on notice accounts?

Notice accounts usually allow you to earn a variable rate of interest, which means the rate can go up or down while your account is active. While they tend to pay higher interest rates than easy access savings accounts, you’ll need to give the bank notice if you want to withdraw your money.

Notice periods vary, but they usually range from between 30 and 120 days. Typically, the more restrictions you agree to, such as a longer notice period or a limited number of withdrawals per year, the higher rate of interest you may earn.

Most people save in the hope that interest rates will go up, meaning they will earn a better return on their savings.

Get the inside scoop

Want to be in-the-know on all things savings?
Of course you do. Sign up and be the first to find out about top rates as soon as they land,
exclusive account holder-only offers, and the latest money news.


How is interest paid on notice accounts?

How interest is paid depends on the provider and the account terms and conditions. Typically, you will receive your accrued interest upon termination of the notice account. However, some notice savings accounts pay interest once a year, which is typically on a set date or the anniversary of your account opening, whilst others may pay interest on a monthly or quarterly basis.

When you’re comparing notice savings accounts, it’s important to check how often interest is compounded. Arguably, the best notice savings accounts are those that compound interest on a regular basis as they can help you to grow your savings faster.

What is the current interest rate for notice accounts?

At Raisin UK, the highest interest rate payable on notice accounts with our partner banks is currently [2.75%] AER for a [95-day] notice period. However, it’s important to remember that notice accounts have variable interest rates, so the rate (and therefore your return) can go up or down. 

If you open a notice account with a variable interest rate, consider checking it regularly and comparing it to other savings accounts, so you know you’re earning the best rate of interest. Generally speaking, accounts with longer notice periods or more restrictions tend to pay higher rates of interest. 

You can compare a range of notice accounts with varying notice periods and competitive interest rates in the Raisin UK marketplace. 

Can the interest rate on a notice account change?

Yes, notice accounts usually have variable interest rates, which means the rate may fluctuate. Your account provider will write to you to tell you if the interest rate on your notice account is going to change. 

There are several reasons why the interest rate on your notice savings account may change, but it typically fluctuates in line with the Bank of England’s base rate. This means that a lot of economic factors come into play when determining interest rates. A provider may also alter their rate when a competitor bank or building society changes theirs.

If you’re not comfortable with this level of uncertainty, you might want to think about choosing an account that pays a set interest rate instead. Fixed rate bonds, for example, pay a guaranteed interest rate but your money is locked in for a fixed period (typically between six months and five years). The rate doesn’t change for the length of your deposit, so you know exactly how much interest you’ll earn upon maturity.

Compare interest rates on notice accounts

You can compare interest rates on notice accounts from different providers by using online comparison tools and doing your own research. You can also compare notice accounts with competitive interest rates on the Raisin UK marketplace (see our notice account comparison table at the top of this page)

When comparing interest rates on notice accounts, it’s important to understand the difference between the AER and the gross interest rate. The AER, or annual equivalent rate, is the interest rate most commonly used to make comparisons between savings accounts because it allows you to see how much interest you’ll earn over a full year. This calculation also takes into account bonuses, compounding and bank charges. The gross interest rate, however, is the annual rate of interest you’ll be paid before any taxes or charges are deducted.

Interest rates aren’t the only factor to consider when looking for a notice account. To find the best notice account for you, you’ll also need to compare other variables such as the notice period, the minimum and maximum deposit, how often interest is compounded, and the penalty for making early withdrawals. 

Only by weighing up all of these factors can you determine whether the account will suit your needs and help you to achieve your savings goals.

Open a notice account at Raisin UK

To quickly and easily apply for a notice account with a competitive interest rate, simply register for a Raisin UK Account. It’s completely free to apply and once your notice account is open, it will accrue interest at a competitive variable rate. 

Read our guide on how to open a notice account or get in touch with our UK customer services team.

Are notice accounts right for you?
Are notice accounts right for you?

In this article, you’ll learn more about notice accounts, who they’re suitable for and how they might help you achieve your savings goals. We also consider whether notice accounts are a good option for emergency savings, along with the potential fees for making withdrawals.

Read more
Choosing an easy access savings account
Choosing an easy access savings account

In this article, you’ll learn whether easy access savings accounts might be a suitable option for you, what factors to consider when choosing an account, and how to find the best easy access account for your needs.

Read more
Understanding interest and taxation on easy access savings accounts
Understanding interest and taxation on easy access savings accounts

In this article, you’ll learn how interest is earned on easy access accounts and why the rate may change. We also explain how to find the best easy access interest rates and help you understand the rules on tax and interest.

Read more

See what our customers say about us on Trustpilot

Great based on 2,662 reviews