Best notice accounts for over 50s
To find the best notice accounts for over 50s, it’s important to compare both the savings rates and account features as restrictions may apply. It’s also worth looking at the whole of the market as over 50s notice accounts do not always offer the best savings rates.
For example, you may find the best notice account is for anyone over the age of 18. Therefore don’t feel restricted by age or obliged to go for a savings account specifically designed for the over 50s.
The following information explains the benefit of this type of savings account, what to look out for and how to choose the best notice account for you.
What are notice savings accounts?
Notice savings accounts usually offer better interest rates compared to easy access savings accounts. However, they are more restrictive and you have no immediate access to your savings. As the name suggests, with a notice account you must give notice before making a withdrawal.
This notice period depends on the account but typically ranges from 30 to 180 days. Therefore, if you’re considering opening a notice account, you need to be confident that you won’t need access to your money at short notice.
When you want to withdraw money, you apply to your bank or building society stating how much you want and the money is released at the appropriate time. Some notice savings accounts prohibit early withdrawals although others let you withdraw money sooner. However, these usually charge a penalty fee.
In addition to timescales regarding when you can withdraw your savings, notice accounts can also come with the following restrictions:
- Minimum deposit – typically between £100 to £5,000
- Maximum investment – anything from £25,000 to £1million
- Number of withdrawals you can make per year
What are the best savings rates on notice accounts?
Notice account interest rates are typically variable, unless perhaps there’s an initial bonus rate. In this instance your account may be fixed at the best savings rate first, before switching to variable rates once the bonus ends. Therefore, to get the best savings rates on notice accounts, always compare accounts.
In addition, as with most savings accounts, usually the more restrictions an account has the higher the interest rate. Therefore, the best savings rates on notice accounts are typically the ones with longer notice periods.
Remember, once you have your notice account, don’t forget about it. Variable interest rates have a habit of going down. Therefore, to ensure you get the best rates, you may want to switch accounts.
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What are the pros and cons of notice savings accounts?
The pros and cons of notice accounts will help you decide if this is the right type of savings account for you:
The pros of notice accounts
- Savings rates are usually higher compared to instant access accounts
- The notice period can prevent the temptation of dipping into your savings
- Helpful if you’re saving up for a future event with a set date, so you know exactly when you will need your money
The cons of notice accounts
- You must give notice to access your savings, stating how much you need
- You may not be allowed to withdraw your money early if you have an emergency
- If you can withdraw your money early you may incur penalty charges
- The number of withdrawals you can make each year can be limited
Are notice accounts safe?
Notice accounts are safe if you choose a bank or building society that is authorised by the Financial Conduct Authority. Choosing an FCA registered company means up to £85,000 of your savings per institution are protected by the Financial Services Compensation Scheme.
So if anything were to happen to the company, your savings are safe and secure.
How do I find the best notice accounts?
Comparing accounts using a comparison website will help you find the best notice accounts. You should also consider the length of notice period you prefer and whether there’s a chance you’ll need your savings for emergencies. If so, a notice account may not be the best savings account for you.
For example, if you rely on your savings for sudden costs such as fixing a broken boiler or car, then an instant access account may be the best type of account for you.
However, if you’re saving for an event which has a set date, perhaps a family wedding or holiday, then a 90 day notice account or greater maybe suitable and give you a higher return.
Frequently asked questions
What are 30 day notice savings accounts?
30 day notice accounts are savings accounts that require 30 days’ notice to withdraw money. This means you need to apply to your bank or building society every time you want to access your cash, stating how much you would like to withdraw. The money is then paid into your nominated account after the 30 day notice period.
What is a 90 day notice account?
A 90 day notice account is a savings account that requires 90 days’ notice to withdraw money. Some notice savings accounts may also have a restriction on the number of withdrawals you can make per year.
What are the best notice accounts for over 60s?
To find the best notice account for over 60s, use an online comparison service like the one provided by Savings Champion. However, keep in mind that you may find a better savings rate by comparing the whole market rather than notice accounts designed specifically for the over 60s.