9th June 2015
Savers desperately looking for a better deal would be wise to take notice of the news that the average interest rate for notice accounts has hit a two-year high of 0.91% year-on-year, according to Moneyfacts.
With a notice accounts, savers typically have to flag it up some 30 days in advance, before they make a withdrawal. As a result they are generally less popular than easy-access accounts.
Rachel Springall, finance expert at Moneyfacts however highlighted that although some may still argue that easy access accounts are a more favourable vehicle for savers’ cash, these can carry disguised penalties in the form of restricted withdrawals.
She said: “Notice accounts are far more transparent and customers will be told how to access their funds upfront. Almost all of these accounts are free of fancy bonuses, too.
“More than a quarter of the notice account market belongs to straightforward 30-day notice deals. While the big banks and well-known brands shy away from this area of the market, the challenger banks have been making themselves known in the best buy tables.”
The current market-leading account is offered by Charter Savings Bank at 1.4%, which is managed online and is free of a short-term bonus.
Springall added: “It would be great to see more notice accounts with online access hitting the best buy tables as these are currently few and far between. Savings providers need to change people’s perceptions of these accounts and boost competition by shaking up the market with top rates that also offer convenient online management.”