While many will be tempted by fixed rate bonds – especially as they are the only standard accounts that can currently beat base rate – those looking to keep some access to their pot may want to look at notice accounts instead, as the latest data shows that these are paying the best averages seen since 2012.
Fresh Moneyfacts.co.uk figures reveal that the average notice account rate now stands at 1.00%, the highest rate since November 2012, when it stood at 1.08%. Additionally, 78% of notice accounts can currently beat base rate, while only 34% of easy access accounts (based on an investment of £10,000) can do the same.
So, those savers looking to gain a decent interest rate without locking their funds away for a year or more may want to take a look at the notice account chart. "Notice accounts now pay 0.40% more in interest than easy access accounts, on average, and 0.44% more based on the top rate in the sector," commented Rachel Springall, finance expert at Moneyfacts.co.uk.
Not only that, but the top rate available today also pays 0.20% more than the market-leading return seen six months ago and marks the highest rate seen since February 2016. In fact, the entire top six of notice accounts has seen a marked improvement since last year, as the table below illustrates.
*This bank operates under Islamic finance principles, so the rates displayed represent the expected profit rate.
Notice accounts aren't just a decent compromise between interest and access; they can also be quite practical. As Rachel notes, "it is now three months to the day until Christmas, [so] savers will need to start planning how to cover the expense of the festive season and a notice account can be a great help to save regularly, without the temptation to dip in and spend the money like you could with an easy access account."
She pointed out that some 60-day notice accounts pay more than the best easy access accounts, "such as the 60 Day Notice – Issue 23 from Kent Reliance, which pays 1.49% per year with interest paid monthly (1.50% yearly)."
Thinking longer-term, say for next year's summer holiday, there are a few accounts that can pay even greater monthly interest, if you're willing to give a bit more notice. "OakNorth pays 1.77% per year on its 90-day notice account, 1.76% per year is paid as a monthly expected profit rate from Gatehouse Bank on its 95-day notice account, and 1.75% per year is paid quarterly by Secure Trust Bank on its 90-day notice account," Rachel said.
"Cleary there is lots of choice for savers who missed out on opening a fixed term regular saver last year and now only have a few months until the expensive festive period," Rachel went on to say. "Thankfully, notice account providers can accommodate these savers and its easier for them to manage the flow of funds with these accounts too."
If you've yet to consider a notice account, now might be the time to give them some thought; did you know we have a separate chart just for those accounts that pay interest monthly, most of which are notice accounts?
"The notice account market is steadily improving, with various notice periods available for savers, which is why consumers would best take notice of these latest accounts to get the top rates around," Rachel concluded. "Every deal currently in the top 10 Best Buys pays a better return than any seen on the notice account market a year ago," so why not take a look?
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.