What is a notice savings account?

A notice savings account is normally a variable rate savings account where you must give the bank or building society advance notice when you want to withdraw funds from the account. For example if you have a 60 day notice savings account you will be required to give 60 days notice to the bank or building society before the money is released to you. These accounts are typicaly 30 days 60 days and 90 days although other time scales are available like 7 days and 180 days. If you can't give the required notice time many of theses savings accounts still allow you to withdraw the money but the bank or building society will charge you a penalty of loss of interest. The advantage of these accounts is that because you do not have immediate access to your money notice savings accounts normally pay a higher rate of interest than instant access savings accounts. It is important with these accounts to read the small print to make sure it is the right savings account for you. Below is a selection of the best and highest interest rates available on notice savings accounts.

Bank or Building Society	Notice Period	AER	Minimum Investment	Direct Link
Aldermore Bank	120 days	3.20%	£1000
Melton Mowbray Building Society	100 days	2.99%	£1,000
Secure Trust Bank	120 Days	3.04%	£1000
Post Office	30 days	2.76%	£500
Principality Building Society	60 days	2.60%	£1,000

It is worth comparing the rates on offer from these notice accounts with the best instant access accounts here to make sure that by giving notice to access your money  you are getting a better and higher savings interest rate on a notice account than you would from a no notice savings account. If you can afford to lock your money up for a longer period take a look at the best fixed rate bonds here. Always read the terms carefully when applying for a notice savings account.