Notice Rates Climb To Three Year High
The average rate of a notice savings account currently stands at 1.57%, its highest level since early 2009, report Moneyfacts.co.uk.
Louise Holmes, spokesperson for Moneyfacts.co.uk, commented:
"Rates for notice savings accounts fell sharply during the peak of the financial crisis, but have risen considerably over the past couple of years.
"One explanation for this rise in average rates could be down to larger introductory bonuses to boost initial rates. For example, our research has seen the average bonus for a notice account grow from 0.77% two years ago, to 1.06% today.
"Whilst not as universally popular as their easy access counterpart, notice accounts tend to pay slightly better rates. This is mainly due to the provision that savers will only access funds after advance notice is given to the provider.
"The top notice accounts are offered by lesser-known providers, such is the case with a lot of market-leading savings accounts at the moment. Investors would be wise to check out the market thoroughly to ensure they can take advantage of the best savings deal for them."
"Rates for notice savings accounts fell sharply during the peak of the financial crisis, but have risen considerably over the past couple of years.
"One explanation for this rise in average rates could be down to larger introductory bonuses to boost initial rates. For example, our research has seen the average bonus for a notice account grow from 0.77% two years ago, to 1.06% today.
"Whilst not as universally popular as their easy access counterpart, notice accounts tend to pay slightly better rates. This is mainly due to the provision that savers will only access funds after advance notice is given to the provider.
"The top notice accounts are offered by lesser-known providers, such is the case with a lot of market-leading savings accounts at the moment. Investors would be wise to check out the market thoroughly to ensure they can take advantage of the best savings deal for them."
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