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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
1.00%Instant AccessMore Info >
Earn 1.00% 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 (Fonds de Garantie Dépôts et de Résolution), the French deposit protection scheme. Manage account online.
1.00%Easy AccessMore Info >
1.00% 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.
5.00%Current Account
Instant Access
More Info >
5.00% interest for 12 months on balances up to £2,500 for the first year. You must pay in £1,000 or more each month to receive interest (excluding transfers from any Nationwide account held by you or anyone else). 12 month fee-free arranged overdraft available. No monthly fee. Must be aged 18 or older.
5.00%Current Account
Instant Access
More Info >
5.00% interest on balances up to £2,000 PLUS 5% cashback on first £100 of Contactless payments every month. Must pay in a minimum of £500 into the account each month. No monthly account fee.
1.50%Current Account
Instant Access
More Info >
Monthly Interest of 1.50% AER (variable) payable on your entire balance up to £20,000 (3.0% AER until 1st November 2016). Monthly Cashback on selected household bills. Must pay in £500 into the account each month.
1.05%Easy AccessMore Info >
Earn 1.05% tax free/AER variable. Open with £100. Unlimited free withdrawals. Transfer in ISAs held elsewhere - no limit
1.00%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 1% AER on ALL instant access credit balances, and 0.5% AER on current account balances up to £2,000 until 30 November 2016. From 01 December 2016 the rate will be 0.25% AER (0.25% gross p.a. variable). INTRODUCTORY OFFER: Free for the first 12 months.
0.90%Easy AccessMore Info >
Earn 0.90% gross/AER. £500 minimum deposit. Interest paid annually. Online access only
0.35%Easy AccessMore Info >
Open with £1,000. Monthly and Annual Interest options. Access - Online, Telephone or Post. No notice period or fees on withdrawals.