Leanne Macardle

Leanne Macardle

Editor
Published: 06/12/2018

At a glance

  • Notice accounts have conditions limiting your ability to access funds.
  • Some notice accounts may impose penalties to access your funds faster than the agreed notice period.

What to consider when choosing a notice account

  • Minimum balances - With some savings accounts there is a minimum amount you have to put in to open the account, and a minimum balance you have to maintain thereafter.
  • Withdrawals - Some savings accounts have restrictions on the number of withdrawals that can be made over a certain time period, which may or may not correlate to a conditional bonus. If this figure is exceeded, interest can be lost.
  • Unconditional bonuses - Some savings accounts include a bonus rate of interest until a certain time. These savings accounts can offer an attractive return from the outset, but can reduce considerably once the bonus expires, typically after 12 months. If you choose a savings account with a bonus it's worth reviewing the rate once the bonus term ends to check you're still getting a good deal.
  • Rate guarantees - Some savings accounts will offer a guarantee on the rate of interest you receive, despite being a variable rate account. These often relate to the Bank of England base rate. Some rate guarantees have the same effect as a bonus.
  • Conditional bonuses- These can include obtaining a higher rate of interest if you hold your current account with that provider, or if you do not make many withdrawals over a certain time period.
  • Early access - Some notice accounts will let you access your funds early (i.e. without needing to give any notice), but this may come at a price, such as a loss of interest penalty.

How to find out more about notice accounts

Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

elderly couple holding children

At a glance

  • Notice accounts have conditions limiting your ability to access funds.
  • Some notice accounts may impose penalties to access your funds faster than the agreed notice period.

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