Notice accounts generally pay higher rates of interest and require notice to be given before withdrawals can be made.

The traditional notice account was the 90-day account, which required investors to give 90 days’ notice to withdraw funds. 90-day accounts still exist, but there are now many other notice periods, including 7, 30, 50 and 60 days. The rules on these notice accounts also vary considerably from the traditional 90-day account.

For example, many accounts allow withdrawals to be made without notice, but subject to a penalty equal to the interest payable during the notice period. Some notice accounts permit a limited number of penalty free withdrawals, usually subject to a minimum amount remaining invested. On some accounts, both a notice period and an interest penalty apply to all withdrawals.

The margin over instant access accounts tends to be fairly small, so investors should only use notice accounts where they are sure the accounts’ conditions suit their circumstances.

Like no notice accounts, notice accounts are available through branches, or on a postal/telephone/internet basis.

Savings can sometimes be accessed immediately subject to a withdrawal penalty. The interest rate is variable and the minimum investment required is often several hundred pounds.