Notice Accounts

Gavlaar

What's everyone's opinion on Notice Accounts, they seem to pay more interest than instant access accounts? Interest seems to be paid twice yearly, does this mean if you transfer your money out before 6 months is up you won't receive any interest whatsoever?

innovate

Gavlaar wrote: »

What's everyone's opinion on Notice Accounts, they seem to pay more interest than instant access accounts?
?

Which ones did you have in mind? Best interest rates appear to be in some current accounts (=instant access) these days.

Gavlaar wrote: »

Interest seems to be paid twice yearly, does this mean if you transfer your money out before 6 months is up you won't receive any interest whatsoever?

Generally interest is calculated on a daily basis, so you don't -in theory- lose out when cashing in early. However, most if not all Notice accounts have clauses that either prohibit any early access, or that charge a heavy penalty (e.g. xxx days of interest). You must check the individual T&Cs.

G_M

no. interest is usually calculated daily and paid annually (or bi-annually).

provided you can wait for the cash there's nothing wrong with a notice account.

Gavlaar

innovate wrote: »

Which ones did you have in mind? Best interest rates appear to be in some current accounts (=instant access) these days.


Generally interest is calculated on a daily basis, so you don't -in theory- lose out when cashing in early. However, most if not all Notice accounts have clauses that either prohibit any early access, or that charge a heavy penalty (e.g. xxx days of interest). You must check the individual T&Cs.

United Bank UK are offering 2.26% on a 90 day notice account which is significantly higher than any instant access rates I've seen around

innovate

Gavlaar wrote: »

United Bank UK are offering 2.26% on a 90 day notice account which is significantly higher than any instant access rates I've seen around

That's sort of not the worst but way from the best. You haven't been looking very hard. Don't just limit yourself to savings accounts when looking for best interest.

Also, United, iirc, don't guarantee the rate.

Gavlaar

innovate wrote: »

That's sort of not the worst but way from the best. You haven't been looking very hard. Don't just limit yourself to savings accounts when looking for best interest.

Also, United, iirc, don't guarantee the rate.

Thanks for the tip, where else should I be looking?

innovate

Just roam around this board a bit

jackywacky

Gavlaar wrote: »

Thanks for the tip, where else should I be looking?

Church House Trust do some good rates especially for £50,000+
http://www.church-house-trust.co.uk/cht/assets/pdf/CHT%20Interest%20Rate%20Flyer%20April%202013.pdf