Are notice accounts right for you?

Are you in a position to put some money away for 30–120 days? If so, a notice savings account could be ideal. With higher interest rates than easy access accounts, you can get better returns on your savings, and with variable rates you may benefit from any increases in the Bank of England base rate. You can usually deposit money whenever you want, and notice accounts also prevent you from taking money out on a whim for unnecessary impulse purchases.

You can quickly and easily find the best notice savings account for you by comparing accounts on the Raisin UK website. Just click on the offers below to see our pick of the best notice accounts, including 30 day notice accounts, 90 day notice accounts and more.

Notice savings accounts might be right for you if you want to take advantage of competitive variable interest rates and have the flexibility to withdraw your money after a set notice period.

They can be a great option if you know you’ll need to withdraw your money in the short-to medium-term, but aren’t sure exactly when. If you’re saving for a deposit on a house, for example, a notice account could allow you to benefit from a higher interest rate and still withdraw the money in time to exchange. Likewise, a notice account might be suitable if you’re saving for a wedding, as you’re unlikely to need instant access to your cash.

A notice savings account might also be right for you if you want to keep your spending under control. As you have to serve notice before you can access your funds, you’ll be less likely to withdraw money on a whim.

In summary, a notice savings account could be a good option to consider if you:

• Want to earn a competitive variable rate of interest
• Would like the freedom to make withdrawals (although some accounts limit the number of withdrawals you can make per year)
• Don’t need instant access to your cash
• Want to be able to top up your account (make sure you check the account terms and conditions allow you to do this)
• Want to take advantage of future increases in interest rates (notice accounts typically pay a variable interest rate, so it can go up as well as down)
• Want to avoid impulse buys

Generally speaking, the more restrictions you adhere to and the longer the notice period (they typically range from 30 to 120 days), the more interest you’re likely to earn. However, if there’s a chance you’ll need instant access to your money, a notice account may not be the best option as you typically won’t be able to withdraw your money without serving the notice period (some savings accounts may allow you to, but you could be charged a penalty).

Notice periods can vary significantly; some accounts allow you to withdraw your money after 30 days, while others require you to give around 90 or even 120 days’ notice if you want to access your cash. Generally speaking, accounts with a longer notice period tend to pay a higher rate of interest.

When looking for the best notice savings account, it’s important to choose a notice period that works for you and your savings goals. For example, 30 day notice savings accounts may be a suitable option if you want to earn a competitive interest rate without tying up your cash for too long. However, if you’re confident you won’t need to access your money for a few months, you might be able to earn a better return by opting for a 90 day notice account (or longer). As always, the best notice savings account will depend on your financial circumstances, so it’s important to do your research before opening an account.

You’ll need to check the terms and conditions of your account, but some providers (not all) will allow you to cancel your request to withdraw your money if you change your mind. If you do decide you no longer need to access your cash, contact your savings provider as soon as possible to find out what options are available to you.

Notice accounts are generally viewed as a short-term savings option, especially if you opt for an account that has a relatively short notice period. The shortest notice period is usually about 30 days, while the longest tends to be around 120 days. There are also various options in between, including 90 day notice accounts, meaning you can choose a term to suit your individual needs and savings goals.

Yes – it’s completely free to open a notice account through the Raisin UK marketplace. Some types of notice savings accounts do restrict the number of withdrawals you’re allowed to make in a year, and you may have to pay a penalty if you exceed this figure. Make sure you read the account terms and conditions carefully, so you’ll know exactly what to expect if you do have to make an urgent withdrawal.

While notice accounts have many benefits, as with most types of accounts, they also have a few drawbacks. To help you decide whether this type of savings account is right for you, we’ve summarised some of the advantages and disadvantages of notice accounts below.

Advantages:

• Competitive interest rates – Notice accounts usually pay higher interest rates than easy access accounts
• Regular savings – Unlike some other savings accounts, notice accounts allow you to continue to deposit money whenever you like, meaning you can add to your savings and take advantage of the interest rate
• Deter impulsive spending – The notice period may help to prevent unnecessary spending and impulse purchases, which can be beneficial if you want to get your budget under control
• Benefit from interest rate rises – As the interest rate is variable, you may benefit from any increases in the Bank of England base rate
• Protection from interest rate decreases – If the bank decides to reduce the interest rate on your notice account, you’ll be advised of the change subject to the relevant notice period, i.e. 30, 60 or 90 days, so you will earn at the rate for longer than if you had the same rate with an easy access account, and it decreased (14 days’ notice)

Disadvantages:

• Penalty for quick withdrawals – If you have to withdraw your money outside of the notice period, you’ll probably be charged a penalty (some accounts won’t let you access your cash at all)
• Not suitable for emergency savings – The notice period means this type of savings account may not be your first choice as a rainy day or emergency fund
• Interest rate can fluctuate – Unlike fixed rate savings accounts, the interest rate can drop if the Bank of England base rate falls, however you will usually be given advance notice

Read more about the benefits and considerations of notice accounts here.

You can compare notice accounts with attractive interest rates from our partner banks on the Raisin UK marketplace (see our notice account comparison table at the top of this page). There’s a range of different notice periods to choose from, including a selection of the best 30 day and 90 day notice savings accounts (plus various other options too).

A notice account from our marketplace might be right for you for the following reasons:

• You’ll earn a competitive variable interest rate of up to 5.30% AER
• Choose from a range of notice periods to suit your goals
• You can withdraw your money after a set notice period
• You’re more likely to avoid impulsively spending your savings
• Your deposit is protected thanks to the Financial Services Compensation Scheme  (or European equivalent)
• They’re typically free to open

To open a notice account, simply register for a Raisin UK Account and follow the steps to apply. Registration is free and only takes a few minutes. Once your application has been approved, transfer your deposit and then sit back and relax while it accrues interest at a competitive variable rate.