Rachel Springall, Finance Expert at Moneyfacts.co.uk, comments: “Savers who are chasing down a good deal would be wise to stand up and take notice of the news that the average interest rate for notice accounts has hit a two-year high of 0.91% year-on-year*.

“Although some may still argue that easy access accounts are a more favourable vehicle for savers’ cash, these can carry disguised penalties in the form of restricted withdrawals.

“Notice accounts are far more transparent and customers will be told how to access their funds upfront. Almost all of these accounts are free of fancy bonuses, too.

“While the big banks and well-known brands shy away from this area of the market, the challenger banks have been making themselves known in the best buy tables.

“The biggest issue facing these accounts is accessibility and awareness, as consumers may favour convenience and familiarity over the best rates.

“Over a quarter of the notice account market belongs to straightforward 30-day notice deals. The current market-leading account is offered by Charter Savings Bank at 1.40%, which is managed online and is free of a short-term bonus.

“It would be great to see more notice accounts with online access hitting the best buy tables as these are currently few and far between. Savings providers need to change people’s perceptions of these accounts and boost competition by shaking up the market with top rates that also offer convenient online management.”

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.

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