Notice savings rates hit three year high - Savings - News - Moneyfacts

News

Notice savings rates hit three year high

Notice savings rates hit three year high

Category: Savings

Updated: 04/05/2012
First Published: 30/04/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Savers investing their money into notice accounts are currently enjoying the best rates for three years, Moneyfacts.co.uk research has found.

Today, the average rate paid by notice accounts stands at 1.57% - the highest level since early 2009, when the average rate paid by the accounts peaked at 1.76%.

However, that fell to a lowly 1.00% two years ago, rising to 1.20% at the same point last year.

For those savers prepared to shop around for the best deal, rates of up to 3.30% are available, although these include heft notice periods which, if breached, can see the rate on offer fall significantly.

Savers also have to put away £1,000 or more to be eligible for the top rates in the market

Louise Holmes, spokesperson for Moneyfacts.co.uk, said that larger introductory bonuses, which usually last for 12 months, may have boosted average rates.

Currently, the average bonus rate on savings accounts is 1.06%, having risen from 0.99% 12 months ago and from 0.77% two years ago.

Top 5 notice accounts

Provider

Account

Rate (gross)

Min Investment

Notice required

Shawbrook Bank

120 Day Notice Personal Savings Account Issue 2

3.30%

£1,000

120 days

Shawbrook Bank

95 Day Notice Personal Savings Account Issue 2

3.20%

£1,000

95 days

Aldermore

120 Day Notice

3.20%

£1,000

120 days

krbs

Internet 60 Day Notice Issue 2

3.20%

£25,000

60 Days

Investec Bank plc

Investec High 5 Issue 2

3.19%

£25,000

6 months

Source: Moneyfacts.co.uk 04.05.2012

"Whilst not as universally popular as their easy access counterpart, notice accounts tend to pay slightly better rates," she added.

"This is mainly due to the provision that savers will only access funds after advance notice is given to the provider.

"The top notice accounts are offered by lesser-known providers, such is the case with a lot of market-leading savings accounts at the moment.

"Investors would be wise to check out the market thoroughly to ensure they can take advantage of the best savings deal for them."

Find the best savings accounts for you - Compare notice savings accounts

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

6 of the best monthly interest savings accounts

Monthly interest savings accounts pay interest on your savings each month – as opposed to yearly – and therefore allow you to take a regular income from your hard-earned cash.

Savings being used as a festive financial buffer

Good news from RCI Bank UK – its latest research shows that many of us are saving more than we were a year ago, but the question is, will you be dipping into that buffer to cover the cost of Christmas?

6 of the best easy access savings accounts

Easy-access savings accounts are as simple as they sound – they allow you to access your money whenever you need it, without having to give advance notice, and they also allow you to pay into them at any time. Here are six of the best.
 
Close