Find our best notice accounts
Earn more interest with a notice savings account
What is a notice savings account?
A notice savings account allows you to withdraw money – provided you give an agreed amount of notice. This makes it more flexible than a fixed-term savings account, but with an interest rate that’s normally higher than you’ll get with an instant access account.
How do notice accounts work?
If you are thinking about choosing a notice savings account, there are three things you need to consider.
How long can you wait to withdraw your money?
How much do you want to save?
What is the highest interest rate you can get?
The notice period varies significantly depending on the account and provider. Typically, you can find notice periods ranging from seven days to 180 days. You can refine our comparison by selecting the notice period that works for you. Generally, the longer the notice period, the higher the interest rate.
Occasionally, you may find a notice account offering a higher interest rate if you pay in more than a certain amount. If you want easier access to your money, read more about instant access savings accounts.
How to choose a notice savings account
Interest rate
The interest rate you are offered is always the first thing to consider as it determines the return you get on your money. Typically, you'll get a higher interest rate the longer you’re prepared to wait to access your money, but that's not always the case.
The notice period
The notice period can range from just seven days to up to 120 days. Some providers may even offer 180 notice periods. When choosing a notice savings account, it's useful to know when you'll need to withdraw, so you can take advantage of higher interest rates by seeking out the best 30, 60, or 90-day notice accounts.
Fees and charges
It's always important to know what fees you may be charged if you need to withdraw your money early. Or if there is a maximum number of withdrawals before you are penalised by a loss in interest or a reduction in the interest rate.
Our best long-term notice savings accounts
Our editors pick these deals by weighing several factors such as the interest rate, term, withdrawal conditions, minimum opening balance and others for each product.
Withdrawals and closure permitted subject to 120 days' notice.
| Gross rate | |
|---|---|
| Including bonus | Excluding bonus |
| 5% | 5% |
| AER rate | |
| Including bonus | Excluding bonus |
| 5% | 5% |
“This 120 days notice account by Paragon offers one of the highest rates in its category. Open with £500.”
A written notice period of 90 days is required for withdrawals.
| Gross rate | |
|---|---|
| Including bonus | Excluding bonus |
| 4.89% | 4.89% |
| AER rate | |
| Including bonus | Excluding bonus |
| 5% | 5% |
“A great offering for those who know when they'll need access to their money. Open with £5,000, and the best part is you continue to earn interest during the 90 days notice period.”
What happens if you withdraw without giving notice?
If you decide to withdraw without giving notice, some accounts will penalise you by removing the amount of interest you would have earned over the notice period from your savings balance.
For example, a 60-day notice account will deduct 60 days' worth of interest from your account if you withdraw without giving notice.
Other notice accounts will not let you withdraw money unless you give the required notice ahead of taking your money.
If you are quite impulsive with your spending, a notice account could be the answer.”
How can you give notice to withdraw?
You must give notice for each withdrawal you plan to make. You can do this by telling your savings provider online, over the phone, or in writing.
To make a withdrawal, you’ll need to tell them:
Which account you want to withdraw from
When you want to make the withdrawal
How much you want to withdraw
You can only make one withdrawal after you have given notice, even if you withdraw less than you said you needed.
If you try to withdraw more than you gave notice for, you will be penalised for the entire amount.
For example, if you gave notice to withdraw £100 but then tried to take out £150, you would be charged an interest penalty on the entire £150.
Some accounts only allow you to withdraw the total amount of savings held in the account, even after giving notice.
What are the risks of notice accounts?
It’s important to look at the whole picture when considering a notice savings account, and there are a few things to bear in mind.
There could be a limit to how many withdrawals you can make within a year and charges if you exceed that limit.
Some notice accounts don’t offer you an online option to manage your account; instead, you might have to visit a branch to give notice of a withdrawal. Therefore, it’s crucial to establish the account’s access requirements.
Also, keep an eye on bonus rates, as savings accounts offer a bonus period to entice new customers. But, when that period ends, the rates fall, so be prepared to switch accounts if you would like the best rate.
| Type of account | Interest earned annually on £1,000 |
|---|---|
| 14 day notice account (4.78%) | £48.86 |
| 95 day notice account (5.30%) | £54.31 |
| 120 day notice account (5.00%) | £51.16 |
Source: Data derived from Defaqto and updated on September 20. Interest rates are used as an example of how much interest could be earned in one year.
Pros and cons
Pros
Cons
How safe are your savings?
FAQs
What is our highest interest rate for a notice savings account?
Currently, our best interest rate for a notice savings account is 5.3%.
Do I need to give notice to withdraw from a notice account?
Not always - some accounts let you withdraw money at anytime but will penalise you by keeping the interest you would have earned over the notice period.
Is there a limit on how much I can withdraw from a notice account?
You can only take the amount you gave notice for; any amount you withdraw over that sum could result in a penalty charge for the whole withdrawal.
Can someone else give notice to withdraw on my behalf?
No, but some providers have forms you can complete and sign to authorise notice to be given on your account. This form can be handed in by anyone.
If I have a joint notice account, will both of us need to give notice to withdraw?
If you have a sole-signature-required account, then one of you can give notice; if it is a joint-signature-required account, you will both need to sign.
Can I change my mind after giving notice to withdraw?
Contact your savings provider and let them know as soon as you have changed your mind. Some providers will allow you to do this, but others will hold you to the notice period.
Jargon buster
AER
The Annual Equivalent Rate (AER) tells you how much interest you would receive if you left your money in a particular savings account for a full year, taking into account compound interest.
BOE base rate
The Bank of England base rate, sometimes known as the bank rate or base interest rate, is the most important interest rate in the UK. The Bank of England uses it to control inflation (the cost at which everyday things - such as food, fuel, and clothing - rise). And other financial institutions use it as a guide for the interest rates on their savings accounts and loans.
The BOE’s goal is to keep inflation as close to 2% as possible, so it changes the base rate if prices fall or rise by too much or too sharply.
The current Bank of England base rate is 5.25%.
FCA
The Financial Conduct Authority (FCA) regulates the financial services industry to ensure firms stick to the rules and consumers do not fall victim to scams or get tied into unfair contracts.
Fixed rate
This term is used to describe savings accounts that deliver a set interest rate over a given term. The interest rate and how long it lasts are agreed when you sign-up for the account.
Financial Services Compensation Scheme (FSCS)
The FSCS is a government-backed program that protects your money and compensates you if your bank, building society, or savings provider goes bust.
It covers up to £85,000 - or £170,000 for joint accounts - held in each official UK financial institution. It also provides cover for other sorts of financial products such as debt management, funeral plans, insurance, credit unions, investments, mortgages and pensions.
There are several banking groups in the UK, but if you have a total of £85,000 or less with any of them, all your money will be returned to you in the event of each bank or building society in the group collapsing. Other types of institutions have different limits. You can check them all on the FSCS website.
Gross Interest
This is the interest paid on a savings account before income tax deductions.
Variable rate
A variable rate of interest on your savings account means that it may go up or down during the term of your account. Often, the changes will be pegged to a financial indicator such as the Bank of England base rate.
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