Give notice to withdraw savings, to benefit from a higher interest rate
If you want to get at your savings occasionally, but don’t need the money immediately, you may earn more interest from a Notice Account than a standard Easy Access option. But do your research, because the many competitive deals on current bank accounts and Easy Access products mean you might be able to get the same return without any access restrictions.
With Notice Accounts, you are required to tell your provider in advance that you want to make a withdrawal (usually 30-120 days notice).
🙂 So one of the main benefits is that you won’t be tempted to dip into your savings!
😥 But if you do have to make an emergency withdrawal, you will be penalised by a loss of interest – usually equivalent to the whole notice period.
Therefore Notice Accounts are best suited for longer-term savings goals when you can accurately plan a withdrawal, like a car purchase or property deposit.
🙁 Some providers restrict the number of withdrawals you can make, so check terms and conditions.
Notice Accounts usually have variable interest rates, so monitor regularly to check that your savings rate remains competitive.
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