Savings accounts that require advance notice to access funds are best suited to consumers who are willing to lock funds away and forego the ability to access funds instantly. Notice accounts may also deter savers who are easily tempted, as the penalties for withdrawing funds are often in the form of loss of interest. Loss of interest tends to relate to the number of days notice required, for example a 90 days notice account may be subject to 90 days loss of interest on the amount withdrawn. The following deals all require advance notice of more than 90 days.
Chelsea Building Society – Call Direct 120
This account offered by Chelsea Building Society pays a rate of 3.10pc. The gross rate is guaranteed to be at least 0.75pc above bank base rate until 8th March 2011. After this date, all withdrawals become notice and penalty free. A monthly interest option is also available at a lower rate of 3.06pc. Savers can invest between £1 and £500,000. The account requires 120 days notice to access funds and while early access is allowed, it is subject to 120 days loss of interest. This deal is available to savers aged 18 or over and can be operated in branch or by telephone.
Newcastle Building Society – Reward Saver
The Reward Saver account pays a rate of 3.00pc including a bonus of 1.00pc for 12 months. A monthly interest option is available at 2.91pc also with a bonus of 1.00pc for 12 months. Investments range from £500 (£5,000 for monthly interest option) to £1m. 120 days notice is required to access cash. Early access to funds can be made, although this is subject to 120 days loss of interest. The account is open to savers aged 18 or over and can be operated in branch with a passbook, online or by post or telephone.
United National Bank – 3 Month Gold Deposit
This deal pays a rate of 3.00pc. Interest is paid on a half yearly basis, on 30th June and 31st December. Savers can invest between £1 and £1m. Three months notice is required to access funds and although early access is allowed at the provider's discretion, it is subject to a 2.00pc penalty. The account is available to savers aged 18 or over and can be operated in branch or by post.
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 Any products featured may be withdrawn by their provider or changed at any time.
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