A notice savings account requires you to give notice to your bank or building society before you can withdraw money.
The notice period varies from a week to more than a month, depending on your account.
A notice savings account tends to have a higher interest rate in comparison to an instant access account and provides more flexibility than a fixed rate bond.
A notice savings account is great for preventing impulse buys."
This type of savings account works like a standard savings account, aside from when it comes to withdrawing money. So, you’ll ask yourself the normal questions when faced with choosing a new savings account, like how much do you want to save? And can I get the highest interest rate?
But then with a notice savings account it’s important to find out how long you need to wait to withdraw your money.
The most common notice periods range from seven days to 30 days, but can go up to 120 days.
Normally, you’ll be rewarded for the longer the notice period in terms of a higher interest rate. It's important to note that if you decide to withdraw without giving notice, some accounts will penalise you by taking 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 until the end of the notice period.
We’ve compiled the best notice savings accounts deals currently on the market so you can see which provider might best suit your needs.
A notice period of 7 days is required for withdrawals.Closure conditions are the same as withdrawals.
Gross rate | |
---|---|
Including bonus | Excluding bonus |
2.7% | 2.7% |
AER rate | |
Including bonus | Excluding bonus |
2.7% | 2.7% |
A notice period of 30 days is required for withdrawals, closure is also subject to 30 days notice. Withdrawals are limited to three in any calendar year. Upon making the third withdrawal, no further withdrawals, including account closure, are allowed until the following calendar year.
Gross rate | |
---|---|
Including bonus | Excluding bonus |
2.75% | 2.75% |
AER rate | |
Including bonus | Excluding bonus |
2.75% | 2.75% |
A written notice period of 30 days is required for withdrawals.
Gross rate | |
---|---|
Including bonus | Excluding bonus |
2.8% | 2.8% |
AER rate | |
Including bonus | Excluding bonus |
2.8% | 2.8% |
If you wish to withdraw money then you’ll have to give your bank or building society notice. This can be done in writing, online or over the phone (depending on your provider).
You can only make one withdrawal after you’ve given notice and you can’t withdraw more than you’ve specified.
Therefore, if you gave notice to withdraw £1,000, but try to withdraw £1,250 you will be charged an interest penalty on the whole £1,250.
Remember, you won't be able to withdraw more money than you've asked for."
Source: Defaqto and Uswitch. Updated: December 9, 2022
If you're prepared to lock your money away for the medium to long term, and you're looking for a savings account where your cash can grow tax-free, then you could consider an Individual Savings Account (ISA).
You could put your money into a stocks and shares ISA or a cash ISA, or a combination of both. If you want to put your money into an account without any stock market investment, a cash ISA could be the best option.
We know that the best deals are always changing, so the editorial team at Uswitch regularly checks the rates on this page and updates them at least fortnightly. To find the best deals we compare products by taking various factors into consideration, like the interest rate (AER), the balance needed to get the highest interest rate, minimum initial deposit, withdrawal conditions and the term of the account as applicable. These factors change subject to the category.
We use this system for the whole of the market covering nearly all, so you can get an overview of what the banks and credit unions are typically offering in the UK. All the banks featured are FSCS protected, so you can be reassured that your money is safe, provided it’s within the defined limits and regulations. To find out more about how FSCS looks after your money, visit fscs.org.uk.
If you change your mind, you’ll need to let your savings provider know as soon as you can to see what options are available.
No, the account holder needs to give notice.
No, you can only withdraw the amount of money that you’ve specified when you gave notice.
Yes, you will normally continue to earn interest during this period. However, it’s best to double check your provider’s terms and conditions.
The interest rate is normally not fixed with this type of account, so it could go down when your money is in the account.