Pocket 2.1% interest with a 90-day notice account


Want to get a better savings rate but still be able to access your cash? Notice accounts could be the perfect solution for savers

  • Savers can get more than 2% by opting for a Notice Account
  • A notice account is a halfway house between an easy-access and fixed-rate deal
  • Investec and OakNorth are currently offering the best buys
  • Savers may also want to consider the savings platform, Raisin 

Products featured in this article are independently selected by This is Money’s specialist journalists. If you open an account using links which have an asterisk, This is Money will earn an affiliate commission. We do not allow this to affect our editorial independence.

Savers seeking to squeeze every last drop of interest from their nest eggs should consider the little-known notice account.

You can now earn 2.1 per cent with Investec’s deal, while OakNorth is paying 2.12 per cent.

A notice account is a halfway house between an easy-access and fixed-rate deal. The catch is that you must give your bank warning if you need to make a withdrawal. Typically, this is between 30 and 120 days.

Top rates: A notice account is a halfway house between an easy-access and fixed-rate deal

However, if you can be organised, you will earn nearly a fifth more than you would get with the best easy-access account at 1.8 per cent with Al Rayan Bank.

Fixed-rate deals still pay a lot more. Rates are edging up to 3 per cent, with a top one-year rate of 2.83 per cent from Charter Savings Bank. 

But these accounts are more restrictive as you cannot typically get your hands on your cash until the end of the term.

James Blower, founder of The Savings Guru, says: ‘Notice accounts work well for those who want a better return on their savings but don’t want to be too far away from accessing them.’

Savers currently hold a huge £994billion in easy-access accounts. Notice accounts and fixed deals are not nearly as popular, with deposits of about £155billion. But with many big banks still paying pitiful rates despite base rate rises, it is worth shopping around.

The more notice you are willing to give, the higher the rate should be. But right now it’s not necessarily worth opting for a longer notice period as the top 120-day account pays only 2.15 per cent, compared with 2.1 per cent with Investec’s new 90-day deal.

The shortest-term accounts are far less generous. Rates stand at 1.45 per cent to 1.5 per cent on 30 days’ notice — no better than you can earn from an easy-access account.

However, the top-paying 90-day accounts from Investec and OakNorth are only available online. And there is a minimum £5,000 deposit at Investec. If you would rather manage your account through a branch or by post, building societies do offer the accounts but at lower rates.

Among the best is Kent Reliance at 1.4 per cent, on 60 days’ notice.

Smaller banks and building societies are covered by the Financial Services Compensation Scheme (FSCS) as usual. It protects deposits worth up to £85,000 — £170,000 on joint accounts — in the event of bank failure.

Savers may also want to consider the savings platform, Raisin, which is currently host to some of the top paying notice deals on the market.

It is also offering a £25 welcome bonus to This is Money readers, but they must open a new Raisin Account via this link* or any link originating from our website.

It offers savers the chance to boost their savings by £25 when they open and fund an account on its marketplace with a minimum of £10,000.

QIB UK is offering 1.95 per cent via the Raisin platform.* Someone depositing £10,000 in this account for the first time could effectively secure a 2.2 per cent return when factoring in the £25 bonus.

For someone looking for a shorter notice period. Investec is offering a 32 day notice account via Raisin paying 1.61 per cent.* Someone depositing £10,000 in this account for the first time could therefore boost their rate to 1.86 per cent – when including the £25 bonus.

Before choosing a notice account, it’s sensible to make sure you have an emergency fund that can be easily accessed.

How to find the best savings rates

Savings rates have been in the doldrums for many years but the situation was hugely exacerbated by the pandemic and the emergency base rate cut to 0.1 per cent.

But there are ways to ensure your cash is at least in the best of the bunch at all times. 

Checking top rates is essential, but it is also possible to make life easier overall and manage your savings pots in one place. 

Over the past few years a number of savings platforms have launched, offering savers the option to switch as and when better deals become available and manage accounts from different banks and building societies.

They each work slightly differently and include their own exclusives. To check out what’s on offer take a look yourself:

Platforms featured below are independently selected by This is Money’s specialist journalists. If you open an account using links which have an asterisk, This is Money will earn an affiliate commission. We do not allow this to affect our editorial independence. 

> Raisin* 

> Hargreaves Lansdown Active Savings*

> Flagstone  

Or you can view This is Money’s comprehensive best buy savings tables here, independently curated by savings guru Sylvia Morris:

> Compare best savings rates now 

Read more at DailyMail.co.uk