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The savings market continues to be one to watch as it reacts to the financial climate in the UK. 

Currently, inflation remains double the Bank of England’s target at 4% and the base rate has frozen at 5.25% since August 2023.

But - and it’s a big but - it does feel like we are on the cusp of change. 

Experts are now placing their bets on when the Bank of England will finally decide to cut the base rate. If this does happen, it should directly impact savings rates, as we’ve already seen how the frozen base rate influenced providers to drop their rates on fixed-rate accounts. 

Remember when we were talking about 6% on fixed-rate savings in July? Well, now it’s more like 5%. 

However, this shouldn’t dishearten savers as there are still plenty of deals available in the market. 

There are still rates available above 5% across most types of savings accounts and importantly, this remains above inflation. If your savings are earning interest above inflation then it gives your money more purchasing power. 

Inspecting the rates every day means you become quite familiar with the top deals, and there is one type of account that has been quietly offering some of the best rates. 

Enter the notice savings account. 

A notice savings account could be described as the perfect mix of an easy access and a fixed-rate savings account. This is because it is more flexible than a fixed-rate, but often has an interest rate higher than an easy access. 

This type of account works by giving the saver the option to withdraw money but they have to give an agreed amount of notice. 

This notice can range from seven days to 180 days, so it’s important to look at all the accounts available and compare them against the interest, notice period and whether there are any fees or charges for withdrawals. For example, if you decide to withdraw without giving notice, you could be penalised. 

However, if you stick to the rules, a notice account can be very appealing. For savers that might be tempted to make impulsive purchases, the notice period means there is time to think about the spending before taking the leap. 

Plus, it can work well for long-term savings goals; like a wedding or home deposit, as you’ll have a rough idea of when the money will need to be withdrawn. 

And the even better news? Notice savings accounts currently have very competitive interest rates above inflation. 

Market Harborough Building Society has a 195-day notice account with a top interest rate of 5.45% and it can be opened with £10,000. 

This is higher than the current top rate for a one-year fixed-rate from SmartSave at 5.21%, and you’ll also need £10,000 to open this account. Plus, you can access the money sooner with the 195-day notice account. 

Similarly, if you are looking for a shorter notice period, The West Brom Building Society has a 60-day notice savings account at 5.25% and you only need £1 to open it. 

This compares to Cynergy Bank’s Online Easy Access Account which can also be opened with just £1, but unlimited withdrawals come at a cost, as the interest rate is 5.10%. 

So, when considering a notice savings account it’s important to compare all types of account to see which one is right for you. 

Interest rate is important as it’ll maximise your savings, but you also need to compare this against accessibility. Is the higher interest rate a suitable reward for having to wait to access your money? If the answer is yes, then a notice savings account could be the answer.