Savers can now get better rates of interest by putting their money in easy access accounts rather than those requiring notice, data from Moneyfacts.co.uk has found.
Historically, notice accounts have trumped their easy access counterparts when it comes to rates of return, as providers are warned before any withdrawals are made.
However, United National bank has just reduced the rate on its 3 Month Gold Deposit Account by 0.50 per cent to 3.00 per cent. Stroud & Swindon now offers the top notice rate, paying 3.20 per cent on its account for the over 50s.
By comparison, Coventry BS is paying 3.30 per cent on its 1st Class Postal account, which requires no notice for savers.
For those who can't afford its minimum deposit of £1,000, Egg offers a no notice account which pays a rate of 3.25 per cent on a minimum investment of just £1.
"Providers are increasingly turning to their savings books to fund their lending activity. Those unable to compete in the ever competitive fixed rate bond market have moved to offering top rates on easy access," said Michelle Slade, spokesperson for Moneyfacts.co.uk.
"Moneyfacts' figures show that 30 per cent of consumers are looking for easy access savings.
"There is now no incentive for savers to invest their money in a notice account, when they can get better rates and access to their money as soon as they need it."
Easy Access Selections
Source: Moneyfacts.co.uk 12.8.09
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