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Easy access savings account rates beat notice accounts

15 August 2009 / by Andy Davies

Easy access savings accounts are now offering higher interest rates than notice savings accounts, according to Moneyfacts.co.uk.

Since United National Bank reduced the interest rate on its 3 Month Gold Deposit Account by 0.50 per cent to 3.00 per cent, Egg now offers a higher interest rate on its instant access savers account, which offers an interest rate of 3.25 per cent.

Customers can open an Egg easy access account with a £1 deposit, while the Citi Flexi Saver account offers an interest rate of 3.10 per cent AER, also with a £1 deposit.

Commenting on the news, Michelle Slade, spokesperson at Moneyfacts.co.uk says that although notice savings accounts have historically offered much higher rates than easy access accounts, Moneyfacts has found that 30 per cent of customers are now looking for easy access savings.

She said: "Providers are increasingly turning to their savings books to fund their lending activity. Those unable to compete in the ever competitive fixed rate bond market have moved to offering top rates on easy access."

Ms Slade added: "There is now no incentive for savers to invest their money in a notice account when they can get better rates and access to their money as soon as they need it."

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ProviderAccountInterest Rate (AER)TermApply
1.10%Instant AccessMore Info >
MARKET LEADING: Earn 1.10% gross/AER Instant Access. No notice periods. Unlimited payments and withdrawals. Pay in from £100. RCI Bank are protected up to a total of €100,000 by the FGDR, the French deposit protection scheme. Manage account online.
0.94%Instant AccessMore Info >
1.00% tax free/0.89% AER conditional bonus, fixed until 17 May 2018. Must pay in new 2017/18 £20,000 ISA subscription between 6th April and 5th May 2017 to qualify for bonus. Bonus is in addition to standard tiered interest rates. Online, phone or branch access.
0.90%Instant AccessMore Info >
1.00% tax free/0.89% AER conditional bonus, fixed until 17 May 2018. Must pay in new 2017/18 £20,000 ISA subscription between 6th April and 5th May 2017 to qualify for bonus. Bonus is in addition to standard tiered interest rates. Online, phone or branch access.
0.75%Current Account
Instant Access
More Info >
Innovative new banking service powered by Clydesdale and Yorkshire Banks. Get your current account and instant access savings account working together. Earn 0.75% AER on ALL instant access savings balances, and 0.25% AER on current account balances up to £2,000 (From 2nd May 2017, 0.50% AER variable on £1+ will apply). No monthly account fee
0.75%Easy AccessMore Info >
0.75% gross/AER on balances from £1,000 to £1 million. Guaranteed to be at least 0.50% above Base Rate** until 31st December 2017. Unlimited withdrawals without restriction or loss of interest.
up to 0.05%Instant accessMore Info >
0.05% AER Gross (variable) for balances over £50,000 (0.01% AER Gross variable for balances under £50,000). Open with £1. Interest paid monthly. No penalties and no withdrawal charges. Manage your account online, in branch or by phone. Over 16s only
0.01%Instant accessMore Info >
0.01% AER Gross (variable). Open with £1. Interest paid monthly. No penalties and no withdrawal charges. Manage your account online, in branch or by phone. Over 16s only

Gross is the interest you will receive before tax is deducted.

AER stands for the Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.