Best Financial Markets Analysis Article When most people think of no notice accounts they think of instant access and no limitations on how they use the account. Research from Moneyfacts.co.uk has revealed that many accounts marketed as no notice or instant access, do, in fact, limit withdrawals - some quite severely.

Sylvia Waycot, spokesperson for Moneyfacts.co.uk, said:

“There is a widely held misconception around no notice accounts. They’re viewed as easy access, but in truth all no-notice means is that you can access your funds, subject to restrictions, without having to give notice. It does not always mean you have unlimited access to funds.

“Many no notice accounts limit the number of withdrawals you can make in a year, ranging from 12 to a shocking none, with the most popular limit being four per annum.

“Go over the agreed number and you will either have your account closed, be charged a fee or lose interest. The interest lost ranges from losing the bonus element of the interest probably the original reason for taking the account - to having the interest plummet to a mere 0.10%. And don’t forget you share that with the taxman! There are even some accounts that will pay no interest at all if a withdrawal is made.

“Other nasties to watch out for include accounts that limit the withdrawals to specific days of the year - very hard to remember. There are others that include ‘closing an account’ as a withdrawal, which could end up in a costly penalty just for moving your money.

“The only way to avoid heartache is to make a note on your account paperwork of how the withdraw system works.”

A full table of the accounts that restrict withdrawals and any penalty for excess is below:

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.

Comments

Harold
25 Apr 12, 00:30

It is True

Instant access and no notice accounts are popular with savers who like to be able to get their hands on their money at a moment's notice. But, it is true that many accounts do limit withdrawals – some quite severely.

Singing off

http://www.spwca.co.uk

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.