Notice Accounts

• Home
• Mortgages
• Credit Cards
• Banking
• Pensions
• Investments
• Loans
• Insurance

Notice Accounts

Notice accounts offer higher rates of interest than easy access accounts, but are less flexible.

With notice accounts, you can only get your cash by giving notice of your intention to withdraw it, for example a 90-day notice account would mean you having to wait three months to get your money. If the money is taken out any earlier than the notice period you will be forced to pay a penalty, which is usually the loss of interest on the amount withdrawn for the length of notice required on that account.

The length of the notice usually ranges between 30 to 60 days. However, the severity of a notice account can be of benefit to people as the penalty discourages them from making regular withdrawals from their savings.

Pros of notice accounts

• Rates are normally higher than Easy Access accounts and are in relation to the Bank of England base rate.
• Notice has to be given for withdrawals, which can help people who are trying to save by restricting them from dipping into the account.

Cons of notice accounts

Penalties are paid if immediate access to the money, or access before the notice period, is made. Penalty usually results in the loss of interest on the amount withdrawn for the length of notice required on the individual account.

• Your money is tied up, making it hard to get hold of in case of emergency.