Saving money by means of a notice savings account has almost no benefit, a new report claims.
Personal finance website Moneysupermarket compared savings interest rates offered by notice savings accounts to the savings interest rates on offer by instant access savings accounts.
They found that in almost every case, investors had a better savings interest rate deal with the instant access savings accounts.
"There is only one notice account with a competitive rate of return compared with the leading easy access savings accounts," said Stuart Glendinning, director of savings accounts at Moneysupermarket.
Mr Glendinning pointed to the Universal Building Society Tracker Two as the only notice savings account to be competitive at 5.5 per cent AER. The next best rate is 5.05 per cent, but that there are 18 easy access savings accounts with better savings interest rates.
He noted: "Those savers who have locked away their savings in a notice account with the hope of better interest rates, should re-think as there are many easy access accounts that offer the same, if not better rates of return."
He also highlighted the flexibility of easy access savings accounts and how people can switch when better savings interest rates enter the market, claiming "most notice accounts are now redundant as easy access accounts have overtaken them in terms of the returns they offer".
Moneysupermarket tries to make it easy for consumers to compare personal finance products and services in the market. They want to help consumers find the best and most competitively priced product for their needs, let them buy it online and save money.
Notice savings accounts "doesn't always offer best interest rates"
Notice savings accounts "doesn't always offer best interest rates"
Wed, 18 May 2005
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