Notice savings accounts are no longer likely to pay you more interest than instant-access accounts, with some providers such as the Post Office paying more interest on instant-access accounts than notice ones.
The Post Office Reward Saver pays interest of 2.75% but you need to give 30 days’ notice to access your money. If you are happy to have an online account, which most of the Best Rate instant-access accounts are, you could get 3.01% from the Post Office with its Online Saver.
You would only need to make an initial deposit of £1 and could access your money immediately. This would earn you £301 in interest in a year on a balance of £10,000 before tax – £26 more than the Reward Saver.
Notice savings not worthwhile
In the past, if you were willing to give your provider notice of one month or more that you wanted to withdraw money from your savings account, you could earn a higher rate of interest than on accounts that let you access your money immediately.
However, the majority of Which? Best Rate instant-access savings accounts now pay more than the Which? Best Rate notice savings accounts.
There are currently no notice accounts that pay more than the Best Rate instant-access accounts. The highest paying is Aldermore’s 90 Day Notice account at 3.1%. It can be operated by post, telephone or online. As well as having to give 90 days’ notice to access your money, you also have to make an initial deposit of £1,000.
However, you could get as much as 3.11% from Derbyshire BS’s NetSaver Issue 1 account, which gives you instant access. It can only be operated online but you only need to make an initial deposit of £1.
- Visit our rate tables for the latest Which? Best Rate savings accounts.
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