Notice saving account will only allow you access to your money after a specified period of time. In the past notice accounts offered very competitive interest rates, allthough today interest rates on these accounts are less competitive then they once were.
If you wish to withdraw money from a notice account you are required give a notice period. Notice periods differ between providers although the typical notice periods are usually thirty, sixty or ninety days, although there are few that offer periods as short as seven days. Its important to remember if you make a withdrawal without giving the sufficient notice period you will be charged for the penalty.
If you think you might need access to your money quickly then you might be better with a diierent account such as an instant access savings account.
What Are The Benefits Of a notice savings account?
Notice savings account usually offer a slightly higher interest rate then that of other savings accounts. The reason for this is because of the inconvenience the accounts has in when it comes to withdrawing money. Usually the longer notice periods tend to offer higher interest rates on the account.
There are some accounts that offer annual bonuses when you dont make any withdrawals for the whole year.
How can I withdraw money from my account?
Withdrawing money from a notice account is can be done several ways depending on what the provider has to offer. Its important to find out which methods are available before you sign up to any account.
Most providers will usually offer a type of online sevice so you can make deposits and withdraw money over the inerent. Telephone banking another option that many providers offer and some providers allow you to make withdrawals and deposits in the brach itself.
Dont forget to give the sufficient notice period before making a withdrawal.
Things to look out for when choosing an account
As always when deciding to open an account there are a few things that you should llok out for to make sure your choosing the right account for you.
Opening Restrictions
Most accounts are usually open to all customers but there are a few who will only allow existing customers to apply for certain products, some provider will only allow new customers. To save wasting your time its a good idea to check whether its availble for you to apply for.
Minimum First Investment
Many providers have requirements on the minimum opening balance, this means that you have to opening the account with a certain amount of money some providers may only want a minimum of £50 first investment whilst others may want anything upto £5,000.
Conditional Bonuses
Some providers offer conditional bonuses where you can earn a bonus for making no or few withdrawals for the throughout the whole year.
Unconditional Bonuses
This is where the account offers a bonus interest rate for a limited period of time. The advantage of a high interest rate may be appealing but this will reduce considerably after the bonus period is over. It might be worthwhile switching to a different account once the bonus period ends.
Guaranteed Interest Rates
Interest rate guarantees are related to the bank of england base rate. This means if base rate of interest rise's your interest rate on you account will also increase, meaning you wont lose out on interest.
Our recommendations
Notice accounts are ideal for those who want to benefit from a high interest rate and are unlikely to need access to there money in a rush. Notice accounts give banks and building societies more flexibility because of the withdrawal restrictions and notice periods, so the providers can afford to give you a better interest rate then that of other savings accounts.
Beware though not all accounts have as higher interest rates as you would expect. Its worthwhile shopping around for the right account as most accounts do have restrictions so you need to be sure that it is the right account for you.
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