Notice Accounts

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Notice Accounts

With notice accounts, savers can only access their cash by giving notice of their intention to withdraw it. Any withdrawals made before the set notice period incur a penalty, which is usually calculated on the amount withdrawn and will equal the interest rate for the notice term.

Providers can require any amount of notice from 7 days up to a maximum 120 days. However, the most common notice period is 30 to 60 days' notice to make a withdrawal penalty-free.

Notice accounts generally offer a good rate of interest as savings are locked up for a longer period. However, the downside is that cash cannot be immediately withdrawn when needed.

Many instant access accounts now offer rates that are as good, if not better, than notice accounts so those looking to choose a suitable savings account should carefully consider their options before deciding to tie up their money in a notice account.