What is a Notice Savings Account?

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In this guide, we cover:

How notice savings accounts work, including notice periods, interest rates and withdrawal rules.
The pros and cons of notice accounts, and how they compare to no-notice, fixed-rate and ISA options.
Tips to help you choose the right account based on your savings goals and access needs.

How does a notice savings account work?

A notice savings account works like a regular savings account. But there’s one key difference: you must tell your provider in advance before taking money out.

Here’s how it works:

1. Open your account and deposit your money.

2. Plan your withdrawal and let your provider know how much you want to take out.

3. Wait for the notice period. This could be 30, 60 or 90 days, depending on the account.

4. Receive your money. It should arrive in your current account once the notice period ends.

How long is the notice period?

Notice periods usually range from 30 to 180 days, depending on your provider. It’s important to know how long your notice period is. That way, you can plan ahead and make sure you’re happy to wait before getting your money. It should also fit with your financial plans.

Some providers may limit the number of withdrawals you can make per year. So, make sure you check the terms and conditions before opening your account.

Can I earn interest in a notice savings account?

You can earn interest with a notice savings account. In fact, these accounts often offer higher rates than easy-access accounts because you agree to wait for your money.

You should keep earning interest during the notice period, too. This can vary based on the provider. So, make sure you check the account details before you apply.

Is a notice savings account right for you?

A notice savings account could be a good choice if:

You can plan ahead. If you’re happy to give notice before taking out money and don’t need instant access.
You have savings goals. These accounts work well for medium- or long-term goals, like saving for a car or a wedding. The notice period can help you avoid impulse spending.
You want better rates. If you’re looking to grow your savings and don’t need quick access, the higher interest rates can be a big plus.

What’s the difference between notice and no-notice savings accounts?

The main difference is how quickly you can access your money:

Notice savings accounts require you to wait a set period before you can withdraw funds. This could be 30, 60, 90 or 180 days.
No-notice savings accounts (also called easy-access accounts) let you take out money whenever you want. There’s no waiting and no penalties.

Choosing between notice and no-notice savings accounts

The right account depends on your needs:

If you want quick access to your money, like for an emergency fund, a no-notice savings account might be a better choice.
If you’re saving for a goal and don’t need instant access, a notice savings account could work well. It helps you stay focused and may offer better interest rates.

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Pros and cons of notice savings accounts

Notice savings accounts have advantages and disadvantages. It’s important to understand these before you decide to open one.

Benefits of notice savings accounts

Notice savings accounts offer several useful benefits:

Higher interest rates. Because you must give notice before withdrawing money, these accounts often pay more interest than easy-access accounts.
Chance to earn more. Many notice accounts have variable interest rates. If the Bank of England raises the base rate, your account’s rate may go up too.
Helps reduce impulse spending. The wait time to access your money can make you think twice before spending, which supports long-term saving.
Flexible deposits. You can keep adding money after your first deposit, unlike fixed-rate bonds that usually lock in a lump sum.

Drawbacks of notice savings accounts

There are a few downsides to notice savings accounts you should be aware of:

No instant access. You must wait out the notice period before you can withdraw money. If you need quick access in an emergency, an easy-access account might be better.
Possible penalties. If you take out money without giving notice, you may lose some or all of the interest you’ve earned.
Rates can go down. Many notice accounts have variable rates. If the Bank of England lowers the base rate, your interest rate might drop too.
Introductory offers. Some accounts start with a higher interest rate that drops after a set time, so always check the terms.

How to choose the right notice savings account

When picking a notice savings account, it’s important to compare a few key features:

Interest rates. Look at different providers to find the best rate for your savings.
Notice period. Make sure you’re comfortable with how long you’ll need to wait to access your money.
Minimum deposit. Check if there’s a minimum amount required to open the account and whether it suits your budget.
Account access. See if you can manage the account online or through an app, which can make things easier.
Early withdrawal penalties. Understand what happens if you take money out before the notice period ends.

Can you have notice and no-notice savings accounts?

There’s nothing stopping you from having both a notice and a no-notice savings account. While both are primarily for savings, they serve different purposes:

A notice savings account might be where you store money that you don’t need immediate access to. It will earn interest at a higher rate and might be ideal for long-term savings goals.
A no-notice savings account could be better for money you need to be able to access quickly, either for short-term savings goals or emergencies.

You can open both notice and no-notice savings accounts with the same or different providers.

Explore how many savings accounts you can open in our comprehensive guide.

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Savings

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What is a notice savings account?