Notice Savings Accounts

lindabea

Does anyone know if banks offering notice accounts allow you to build a 'ladder of notice periods?' For instance, with a 120 day notice account (ie 4 months) would you be able to give a monthly notice so that you'll always have a month in which to make a withdrawal? Or do you have to wait for the 4 months to expire before you can give another 4 month notice?

EthicsGradient

I asked the same thing a few weeks ago - https://forums.moneysavingexpert.com/discussion/6040436/overlapping-withdrawal-notices-in-notice-accounts . Some do, at least, and no one came up with an example of one that doesn't allow it. I can let you know in a couple of months' time whether PCF Bank do for sure ...

soulsaver

lindabea wrote: »

Does anyone know if banks offering notice accounts allow you to build a 'ladder of notice periods?' For instance, with a 120 day notice account (ie 4 months) would you be able to give a monthly notice so that you'll always have a month in which to make a withdrawal? Or do you have to wait for the 4 months to expire before you can give another 4 month notice?

I don't know the answer to the exact question you pose but in my experience most providers allow multiple accounts... so you could stagger your notice by account.

Just in case I'd like to follow suit, who've you got in mind and what rate?

londoninvestor

EthicsGradient wrote: »

I can let you know in a couple of months' time whether PCF Bank do for sure ...

According to their T&Cs they do:
https://pcf.bank/media/1340/saving_accounts_terms_and_conditions.pdf

If they wanted to prevent you doing this, they would have had to stipulate it in section 29.4.

Although to be fair, if they tried to prevent you, while they wouldn't have a legal leg to stand on, the complaint and FOS appeal could take longer than the notice period anyway...

masonic

lindabea wrote: »

Does anyone know if banks offering notice accounts allow you to build a 'ladder of notice periods?' For instance, with a 120 day notice account (ie 4 months) would you be able to give a monthly notice so that you'll always have a month in which to make a withdrawal? Or do you have to wait for the 4 months to expire before you can give another 4 month notice?

If you're considering this, you might instead think about creating a ladder of fixed rate accounts, which would require you to actually withdraw and reinvest the money, but would generally pay a higher rate of interest.

lindabea

soulsaver wrote: »

Just in case I'd like to follow suit, who've you got in mind and what rate?

There are two banks which I've used before:
1 Paragon at 1.65% for 120 days
2 Charter savings at 1.81% for 95 days.

There's also Gatehouse bank at 1.82% for 120 days, but I'm not familiar with this bank

lindabea

masonic wrote: »

If you're considering this, you might instead think about creating a ladder of fixed rate accounts, which would require you to actually withdraw and reinvest the money, but would generally pay a higher rate of interest.

Masonic - If I understand your suggestion, I would have to open 12 fixed rate accounts and most of them have min opening balance. I don't think I can be bothered with having 12 accounts. My idea is to keep it simple and move money around when new/better rates appear. Certainly better rate than keeping money in an easy access account if you can set up a 'ladder' with easy access.

Wheres_My_Cashback

Investec are definitely worth considering if you have £10K+ as they are offering 1.85% on 95 days notice, but you can stipulate a percentage which can be taken with no notice at all, albeit for a slightly lower rate.

lindabea

Wheres_My_Cashback wrote: »

Investec are definitely worth considering if you have £10K+ as they are offering 1.85% on 95 days notice, but you can stipulate a percentage which can be taken with no notice at all, albeit for a slightly lower rate.

This is quite an interesting account. However, it's worth noting that the interest rate drops by 0.05% while your account is on notice. So the rate for 95 days notice becomes 1.80% not 1.85%. Again, there is no mention if you're allowed to give multiple notices.

triplea35

lindabea wrote: »

This is quite an interesting account. However, it's worth noting that the interest rate drops by 0.05% while your account is on notice. So the rate for 95 days notice becomes 1.80% not 1.85%. Again, there is no mention if you're allowed to give multiple notices.

I took some interest in the Investec Notice accounts recently. I'm sure the small print states you can only hold one account of each term period, so difficult to ladder.

Wheres_My_Cashback

triplea35 wrote: »

I took some interest in the Investec Notice accounts recently. I'm sure the small print states you can only hold one account of each term period, so difficult to ladder.

2.2. You may open more than one Notice Plus Account, but no two accounts can have the same notice period.