A notice account pays interest on money you can withdraw only after giving the bank a set period of notice. It sits between easy access (withdraw any time) and a fixed rate bond (locked in for the term): you give up instant access, but you’re not tied in for a term.
How notice works
- You ask the bank for a withdrawal.
- The notice period starts. The account’s terms say how long it is.
- When the notice period ends, the money is paid out.
Check whether the account allows any withdrawal without notice, and on what terms, before you open one, and don’t use a notice account for money you might need at short notice, such as an emergency fund.
The catch: the rate is variable
A notice account’s rate is variable, so the bank can change it at any time, as with easy access. The difference is that you can’t leave straight away: if the rate is cut, you can end up earning the new rate until your notice runs out. Some notice accounts give you at least the notice period’s warning before a cut takes effect, so you can leave before it applies; others don’t. Before opening an account, read what its terms say about rate changes, and keep an eye on the rate after any Bank Rate cut.
How they compare
The Bank of England doesn’t publish an average for notice accounts, so compare a notice account’s rate with the averages either side of it. In August 2026 those were:
| Account | Average rate | Access |
|---|---|---|
| Instant access | 2.07% | Any time |
| Notice account | No average published | After the notice period |
| 1-year fixed rate bond | 4.04% | Usually not until the end of the term |
A notice account is worth it if it pays clearly more than the best easy access accounts. If it pays less than a fixed rate bond for money you could leave for a year anyway, the bond gives you a guaranteed rate for the same lack of access.
Who notice accounts suit
- savers who want a higher rate than easy access but don’t want to lock money away for a fixed term
- money for a cost you can see coming weeks or months ahead, such as a planned purchase, where you’ll know when to give notice
- a second layer of savings behind an easy access emergency fund
Notice accounts suit you less if you might need the money suddenly, or if you won’t keep checking the rate: with a variable rate, a good account can become a poor one without you noticing.
Tax and protection
Interest from a notice account is taxable like any other savings interest: Each tax year a basic rate taxpayer can earn £1,000 of savings interest tax-free, a higher rate taxpayer £500 and an additional rate taxpayer nothing; your band is worked out with your interest added to your other income. Notice accounts with a UK-authorised bank are protected by the FSCS up to £120,000 per person, per bank (FSCS protection).
Related guides
- Savings accounts guide: the account types, average rates, tax and protection in one place
- Easy access savings: withdraw any time, variable rate
- Fixed rate bonds: a guaranteed rate for a set term
- How to find the best savings account: the benchmark and checks for any account