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What to look for in notice savings accounts

While quick and easy access to savings may seem like a good thing, it isn't always the best way to help your savings grow. It is for this reason that notice savings accounts are so popular, as they encourage a person to leave their savings alone, giving them chance to increase slowly. Another bonus with notice savings accounts is they generally have a higher rate of interest than your average savings account, however, this is subject to withdrawal and can be lost if a person decides to withdraw from their account before their notice period expires.

The notice period required on notice savings accounts can vary and usually ranges from between 30 and 120 days. Factors such as account type and balance as well as interest rate can all affect how much notice period you have to give before you can make a withdrawal. Some accounts may offer a free withdrawal per year, this means you can make a withdrawal once, sometimes twice, a year without incurring any of the usual penalty charges. This again changes from bank to bank as well as account type.

The Whiteaway Laidlaw notice account has a notice period of 120 days for an interest rate of 3.5% AER. You are welcome to bank by mail or go into their branch but they do not offer internet banking on this type of account. Their minimum investment is £1,000 and you can have up to £500,000 in your account, with your interest being paid annually. Another of the most reasonable notice savings accounts is offered by The Principality Building Society, with a 2.60% AER, you have to give only 60 days notice to withdraw from this account. The minimum initial deposit is £1,000 and you can have up to £100,000 in your account at any one time.

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