Notice Savings Accounts
Earn interest while keeping access to your savings, provided you give advance notice before withdrawing. Notice savings accounts can offer a middle ground between easy access and locking money away for a fixed term.
What is a notice savings account?
A notice savings account lets you earn interest on your savings while retaining the ability to withdraw your money, provided you give the required amount of notice first. The notice period varies between accounts and might, for example, be 30, 60 or 90 days.
Unlike a fixed-rate account, your money is not necessarily committed until a set maturity date. However, unlike an easy-access account, you generally cannot withdraw it immediately without following the account’s notice rules.
Read the full guide: What Is a Notice Savings Account? →How notice savings works
Notice savings accounts allow you to continue holding money in savings without committing it to a fixed maturity date. When you want to withdraw, you normally need to request the withdrawal and wait for the account’s notice period to pass.
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01
Deposit your savings
You add money to the account in line with the provider’s deposit and balance rules.
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Your savings earn interest
Interest is paid according to the account’s terms. Notice account rates are commonly variable, so the rate may change while you hold the account.
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Give notice when you want to withdraw
You request a withdrawal and the account’s notice period begins. How much notice you need to give depends on the particular account.
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Withdraw when the notice period ends
Once the required notice period has passed, the requested money becomes available for withdrawal according to the provider’s process.
Some notice accounts may have different rules for withdrawing without serving the full notice period, while others may not allow it. Check the account terms before assuming money can be accessed early.
When notice savings can be useful
Notice savings can be useful when you are comfortable planning withdrawals in advance. They can provide a middle ground between keeping money immediately accessible and committing it to a fixed-term account.
You can plan when you will need the money
A notice period can be easier to accommodate when you expect to know about an upcoming expense sufficiently far in advance to request the withdrawal.
You do not need immediate access
Money that is unlikely to be needed unexpectedly may be more suited to a notice account than savings that need to remain available at short notice.
You do not want a fixed maturity date
A notice account can let you retain a route to accessing your savings without committing the money until a predetermined fixed-term maturity date.
Notice savings are less suited to money you may need unexpectedly, because the required notice period can delay access. If immediate availability matters, an easy-access savings account works differently.
Understand easy-access savings→What you gain — and what you give up
Notice savings accounts sit between easy-access and fixed-term savings. You retain a route to withdrawing your money without waiting for a fixed maturity date, but you normally need to plan ahead and serve the required notice period.
What notice savings can provide
Access without a fixed maturity date
Your money is not normally committed until a predetermined end date, giving you a route to withdrawing it when your plans require.
Potentially competitive interest rates
Some notice accounts offer higher rates than more flexible savings accounts, although the rates available and account conditions vary.
A defined withdrawal timetable
The notice period makes it clear how far in advance you need to request your money, which can suit expenses that can be planned ahead.
What you give up
Immediate access to your savings
You normally need to wait for the notice period to expire before the requested money becomes available.
Flexibility for unexpected expenses
A notice period can make the account unsuitable for money you might need at short notice.
Certainty over a variable rate
Notice account rates are commonly variable, so the interest rate may rise or fall while your savings remain in the account.
The main trade-off is therefore between access and timing. A notice account can provide more flexibility than committing money to a fixed term, but less immediate access than an easy-access account.
What to compare when looking at notice savings accounts
Notice savings accounts can differ considerably in their notice periods, interest rates and withdrawal rules. Comparing these features together can help you understand whether an account provides the right balance between return and access for the way you intend to use your savings.
Interest rate / AER
Compare the rate being offered and check whether it is variable. A higher rate may be attractive, but it should be considered alongside the account’s notice period and other conditions.
Length of the notice period
Check how much advance notice you must give before withdrawing. A longer notice period means you will need to plan further ahead when you want to access the money.
Early withdrawal rules
Find out whether withdrawals are possible before the full notice period has passed and, if they are, whether this affects the interest you receive or involves other conditions.
Minimum deposit or balance
Check how much you need to open the account and whether a minimum balance must be maintained to receive the advertised rate.
Deposit rules
Look at whether you can continue adding money after opening the account and whether there are minimum or maximum deposit limits.
How notice must be given
Providers can have different processes for requesting a withdrawal, so check how notice is submitted and what happens once the notice period begins.
Eligibility and account management
Check any eligibility requirements and whether the account can be managed online, through an app, by telephone, in branch or by another method.
The interest rate is only one part of a notice account. A competitive rate may be less useful if the notice period or withdrawal conditions do not fit when you are likely to need the money.
Learn how to compare savings accounts properly →What happens when you want to withdraw?
Withdrawing from a notice savings account usually involves more than simply transferring the money immediately. You first give notice to the provider, then wait for the account’s required notice period before the withdrawal can be completed.
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Submit your withdrawal notice
Tell the provider that you want to withdraw some or all of your savings, following the process specified for the account.
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The notice period begins
Once valid notice has been given, the required waiting period starts. The length of this period depends on the terms of your account.
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Wait for the notice period to expire
Your requested money normally remains in the account during the notice period. Check the account terms to understand how interest and any changes to the withdrawal request are handled during this time.
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Complete the withdrawal
When the notice period has ended, the requested money can be withdrawn or transferred in accordance with the provider’s process and account terms.
Rules for withdrawing early, changing or cancelling a withdrawal request can vary between providers. Check the account terms before giving notice, particularly if there is a possibility that your plans could change.
Not sure notice savings fits what you need?
The right savings account depends partly on when you expect to need your money and how you prefer to save. Explore the other main account types if a notice period does not fit what you need.
Easy Access Savings
Keep your savings readily available when flexibility and quick access are important.
Explore easy access →Fixed Rate Savings
Lock in an interest rate for an agreed term if you are comfortable restricting access to your money.
Explore fixed rate →Regular Savings
Build your savings gradually through recurring contributions, subject to the account’s monthly limits and rules.
Explore regular savings →How are notice savings protected?
Eligible deposits with UK-authorised banks, building societies and credit unions may qualify for Financial Services Compensation Scheme protection, subject to the scheme’s rules and limits.
