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Notice Account

I’m going to be receiving redundancy payment I’m looking to put it in a 30 day notice account in the hope I won’t have to touch as will receive 11 weeks notice pay & hopefully get new job
please could you advise accounts available
I can’t seem to find many! 
Thanks

Comments

  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Post of the Month
    edited 29 July 2020 am31 6:16AM
    Banks have less appetite for customer deposits at the moment given interest rates are on the floor (0.1% Bank of England base rate,  overnight Libor close to zero),  and they couldn't offer much more for 30 day notice than for instant access (because if they have to give it you back on demand within a month, they can't do much with it). A number of places that used to have 30 or 60 day accounts (e.g. Aldermore) aren't currently bothering to offer them.

    Assuming you don't want to fix for a longer term (due to uncertainty about when you start earning again) your best bet for interest rates is likely to be NS&I, their Income Bonds or Direct Saver are paying in the 1-1.2% range. https://www.nsandi.com/our-products

    If the reason you wanted a notice account is self-control (having a large amount of money accessible at the click of a button) they do an 'investment account' which you can only operate by post, which is more hassle, though still lets you get the money when you want it without waiting as long as 30 days, while at 0.8% it pays better than 30 day notice accounts you'd find elsewhere.

    UBL do offer a 35-day notice account but at 1% it doesn't pay any more than the first two instant access NS&I accounts mentioned, so not particularly attractive.

    There is of course more to an account than interest rates, as NS&I have been offering the highest rates in town during lockdown they are busy and so there have been complaints on the forum about slow customer service.

  • colsten
    colsten Posts: 17,597 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    edited 29 July 2020 am31 6:57AM
    There are 304 Notice accounts listed on https://moneyfacts.co.uk/

    Most with dreadful interest rates but one or two pay up to 1.4%. 
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Post of the Month
    edited 29 July 2020 am31 7:14AM
    colsten said:
    There are 304 Notice accounts listed on https://moneyfacts.co.uk/

    Most with dreadful interest rates but one or two pay up to 1.4%. 
    Yes, but as he's only looking for 30 day notice his top three options to open online would be Secure Trust, Saffron or Monmouthshire - which have rates in the 0.4-0.6% range, everything else is less; if willing to use post to open the account he could get a little more but still not as much as the NS&I postal investment account that pays 0.8% without needing notice. So I don't disagree that most have low interest rates :smile:

    The ICICI or Melton accounts with rates around 1.4 that you mention are only for 95 or 100 day notice periods, and if he only has 11 weeks redundancy pay to keep him going it might be ambitious to lock all or part of it up for longer than three months.
  • colsten
    colsten Posts: 17,597 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    I’m going to be receiving redundancy payment I’m looking to put it in a 30 day notice account in the hope I won’t have to touch as will receive 11 weeks notice pay & hopefully get new job
    please could you advise accounts available
    I can’t seem to find many! 
    Thanks

    OP, you asked the same Q a couple of days ago https://forums.moneysavingexpert.com/discussion/6173848/notice-account
  • Thank you
    I’ve gone with the Monmouthshire for now 
    I’ll reassess in 12 weeks when I have more information regarding employment status. There’s lots of info here for me to look back on & work out best options 
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