Take notice of these accounts

SAVERS who are searching for a better deal should consider the littleknown notice account.

The best notice account currently pays 1.81pc — compared with a top 1.5pc for an easy-access deal.

The catch is that you are required to give your bank or building society up to 120 days’ warning before making any withdrawals — which means you must be organised.

Many savers have no idea these accounts still exist after all major High Street banks scrapped them.

And as savers facing interest rate uncertainty poured money into easy-access accounts, which now hold £753 billion, cash in notice accounts and fixed deals tumbled by 10 pc to £167 billion.

But notice accounts are making a comeback, with three new ones out in just the past week. They are increasingly becoming a firm favourite among new banks and building societies, with online, postal and branch deals available. As a rule of thumb, the more notice you are willing to give, the higher the rate.

These are variable, but if they fall, providers must let you quit the account early without sitting out the required notice period.

Charter Savings Bank’s new account, available online, pays 1.81pc. You must give 95 days’ notice before making a withdrawal.

This compares with a top easy-access rate of 1.5pc, which includes a 0.75 percentage point bonus for the first year, available from Cynergy Bank.

Investec Bank even allows savers immediate access to some of their money — in return for a slightly lower rate. For example, the standard rate on its 65 day-notice account is 1.5pc. But if you decide you need immediate access to 10 pc of your money, it’s 1.45 pc.

You can also opt for easy access to 20pc of your money for a slightly reduced rate. If you don’t make any withdrawals from your account for 90 days, you qualify for a small 0.05 percentage point loyalty bonus.

On 95-days’ notice the rates are 1.8pc and 1.75pc. On 35-days’ notice you’ll earn 1.4pc and 1.35 pc respectively.

If you prefer to run your account by post, the new Mansfield BS 60-day account pays 1.35 pc. Its 90-day account pays 1.4 pc, including a 0.25 percentage point bonus payable for the first 12 months.

If you want branch access as well as post, Saffron BS’s 30-day account and Chorley BS and Market Harborough BS’ 60-day accounts all pay 1.3pc. Kent Reliance offers 1.4pc on 60 days.

All smaller banks and building societies are covered by the Financial Services Compensation Scheme (FSCS) as usual.

This scheme protects deposits worth up to £85,000 — or £170,000 on joint accounts — in the event of a bank failure.