What is a Notice Deposit Account?
A notice deposit account is a savings tool where depositors must notify the bank before withdrawing funds. This account structure offers a good balance between flexibility and interest gains, providing higher interest rates than call accounts while avoiding the complete lock-in period associated with fixed-term deposits.
Notice periods
When opening a notice deposit account, you elect what your notice period will be, which could be 15, 32, 40, 45, 60, 90 or 120 days. This period signifies the time between notifying the bank of your intent to withdraw and the availability of your funds. You are also able to add funds to your notice account at any time. Your savings can remain in the account for as long as needed.
Interest rates
The interest earned depends on your chosen notice period and account type. Some accounts offer prime-linked rates, while others tie to top-performing money market funds, ensuring diverse options for potential returns.
Suitability for savings goals
Notice deposit accounts cater to various savings objectives. For short-to-mid-term goals or planned expenses, they are an efficient cash management strategy, offering a good balance between accessibility and growth. They’re particularly suitable for individuals with a predictable cash flow and a clear understanding of their financial needs, and who can anticipate and forecast their expenses – yet don’t want to lock savings away for specific terms.
Risk and costs
Our notice deposits are low-risk, capital protected, savings accounts. There is no monthly fee, but there is a penalty fee for early withdrawals.
Considerations and tips
When considering a notice deposit account, assess your liquidity needs and the length of the notice period. Opt for a period aligning with your savings goals to maximise benefits. Ensure the terms and interest rates match your financial objectives.
It pays to have a notice savings account
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All rates are indicative, and are subject to vary as rates are calculated on a daily basis. This is not an official confirmation of the term or rate, and any transaction that may be concluded pursuant to this shall be in terms of and confirmed by the signing of appropriate documentation, on terms to be agreed between the parties.