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Easy access beat notice accounts on interest

Easy access beat notice accounts on interest

Category: Savings

Updated: 13/08/2009
First Published: 12/08/2009

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 It is now over 6 months old so the content may be out of date.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 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

Coventry BS 1st Class Postal 3.30% Rate includes a 1.30% bonus for 12 months £1,000
EggEgg Savings Account 3.25% Rate includes a 2.00% bonus for 12 months £1
Alliance & Leicester Online Saver Issue 5 3.15% Rate includes a 2.65% bonus for 12 months £1,000
Birmingham Midshires Telephone Extra 3.15% Rate includes a 2.65% bonus for 12 months £1
CitibankFlexible Saver Issue 5 3.06% Rate includes a 2.06% bonus for 12 months £1

Source: Moneyfacts.co.uk 12.8.09

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 Any products featured may be withdrawn by their provider or changed at any time.