Previously, we’ve explained instant access accounts and explored everything you need to know about fixed-term accounts. In this post, we put notice accounts under the spotlight and explore why they can be the perfect middle ground for savers.

What is a notice account?

A notice account typically offers higher interest rates than instant access accounts but requires you to give your provider the required notice before you can access some or all your cash. A 35-day notice savings account means you will need to tell your bank or building society you want to withdraw your money 35 days before you need it. This differs from a fixed-term account which locks away your funds without access until the term expires.

What are the pros and cons of a notice savings account?

The interest rate is usually higher than an instant access account, though lower than a longer fixed-term. Simply put, the longer you are prepared to leave your money untouched, the better the rate of return.

Like instant access accounts, interest rates are variable, so can go up or down, affecting your interest income. Most banks continue to pay interest even during the notice period, but it’s worth checking the terms and conditions to make sure.

There are a wide range of notice accounts available to match your savings goals. Most notice periods range between 30 and 120 days. As long as you give your bank the required notice, you can withdraw your money at any time without paying any fees. However, if you do need to access your funds before the notice period is up, there may be a penalty to pay.

You can usually make more than one withdrawal with the required notice for each. You may also be restricted to a set number of withdrawals in a certain period. However, unlike fixed-term accounts, you can pay money into your account whenever you choose.

To open some notice accounts, there may be a minimum deposit.

Using notice accounts for smarter saving

Notice accounts can be the perfect middle ground when saving for a particular event or goal, such as a wedding or deposit on a home. It still gives you relatively quick access when you need your money, but also prevents any short-term temptation to dip into the pot.

When used together with instant access and fixed-term accounts, they offer a complete portfolio of savings options. Cash when you need it, an account that gives you better returns over the short-term and an option that allows you to maximise your interest income for (re)investment or long-term goals.

Flagstone vs the High Street

Flagstone, the UK’s leading cash deposit platform, gives you access to multiple banks and savings accounts – including market-leading and exclusive rates – from a single application.

A snapshot taken 25 January 2023 shows that a notice account through Flagstone offers an interest rate of more than double some High Street accounts. We can also offer a better rate of return than some fixed-term accounts – while offering quicker access.

To see how we can help you grow your savings and maximise your interest, take a look at our range of notice, instant access, and fixed-term accounts available via our cash deposit platform.

Open a Flagstone account.

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This article is not advice. If you would like to receive advice on your savings and investments, consider speaking to a Financial Adviser.