What is a high interest notice savings account

A high interest savings notice account requires the account holder to give written notice to the bank when they require a withdrawal of funds. The length of the notice period depends on how long your account term is and how much you have in your account. The notice period is usually somewhere between 30 and 90 days. However, some higher interest ISAs may require as long as 365 days depending on circumstances. In return for following the notice period guidelines, account holders are given a higher rate of interest than a standard savings account.

Most high interest savings notice accounts will allow a certain number of withdrawals from the account, without notice and without penalty. Again this depends on how long your term is and how much money you have in your account. Typically, one-year terms allow one penalty-free withdrawal, where as a five-year term will normally allow three penalty-free withdrawals per year. You should always ask the bank you intend to open the notice account with to provide you with information regarding the different notice periods and also any possible fees or charges. This will allow you to make an informed decision before committing to anything.

Most of the high interest savings notice accounts have a variable rate of interest. This means it can move down or even up depending on the interest base rate provided by the Bank of England. If you have a lump sum you want to invest and you want this type of account to work for you than you will need to be absolutely certain you can afford to leave the cash alone and that you won't need it in a hurry. If you are unsure, you could consider a easy access account, which has no notice period or withdrawal fee but the interest is also significantly lower.

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