Banking
TL;DR
Notice savings accounts require you to give advance warning before withdrawing - typically 30, 60, 90 or 120 days. In return they pay higher rates than instant-access accounts. Interest is taxable. They suit savers who have a cash buffer elsewhere and do not need daily access to these funds. The Personal Savings Allowance covers up to £1,000 interest for basic-rate taxpayers in 2025/26.
Notice savings accounts sit between easy-access and fixed-rate accounts in the savings hierarchy. You give up instant access in exchange for a rate premium, but unlike a fixed-rate bond you are not locked in for a defined term - you simply commit to a waiting period before each withdrawal. This makes them a practical choice for emergency funds you hope never to need, or for savings earmarked for a known but not yet timed expense.
Notice periods in the UK market typically run from 30 to 120 days. Some providers allow penalty-free early withdrawals in exceptional circumstances; others do not. Rate structures vary: some accounts pay a fixed notice rate, others are variable and move with the Bank of England base rate. This guide explains how notice accounts work, the tax position, and what to look for when comparing providers.
Key facts (2026)
- Notice periods in the UK market commonly range from 30 to 120 days; 95-day and 100-day products have grown popular with building societies in 2025-26.
- The Personal Savings Allowance for 2025/26 is £1,000 for basic-rate taxpayers and £500 for higher-rate taxpayers; additional-rate taxpayers receive no allowance (HMRC).
- Interest on notice accounts is taxable income and must be declared on a self-assessment return if you file one (HMRC, 2025/26).
- The FSCS protects eligible deposits up to £85,000 per person per authorised UK bank or building society (FSCS, 2025).
- Banks are required by FCA rules to give at least 14 days' notice of a rate reduction on variable notice accounts (Payment Accounts Regulations 2015).
How notice savings accounts work
To access your money you must give the bank advance written notice - via app, online banking or post, depending on the provider. The notice clock starts from the day you submit the request and ends after the specified number of days, at which point the funds are released. If you submit a notice and change your mind, you can usually cancel before the period expires. Some providers run a continuous notice model, where your money earns interest throughout the notice window; others pay interest only until the withdrawal date. Check which model applies before you open an account.
Notice accounts versus easy-access and fixed-rate accounts
Easy-access accounts pay lower rates but allow same-day or next-day withdrawals. Fixed-rate bonds typically pay higher rates than notice accounts for equivalent term lengths, but lock your money in for the full term with no withdrawal facility. Notice accounts occupy the middle ground: you earn more than easy-access while retaining the ability to exit without losing the principal. This makes them particularly suitable for funds you are unlikely to need imminently but do not want to commit to a two- or three-year fixed term.
| Account type | Access | Rate profile |
|---|---|---|
| Easy access | Immediate | Lowest variable |
| Notice (30-120 days) | After notice period | Mid-range variable or fixed |
| Fixed-rate bond | Maturity only | Highest fixed |
Variable versus fixed-rate notice accounts
Most notice accounts pay a variable rate that moves with the Bank of England base rate, though the relationship is not automatic - banks set their own rates and the FCA requires 14 days' notice of any reduction. A minority of notice accounts pay a fixed rate for a defined period before reverting to variable. Fixed-rate notice products give more certainty but may not be available from all providers. If you open a variable notice account and the rate falls significantly, consider whether a shorter-term fixed-rate bond would now offer better value, bearing in mind the liquidity difference.
Tax on notice account interest
Interest earned on notice accounts outside an ISA wrapper is subject to income tax. Banks pay interest gross (without deducting tax at source) and report interest payments to HMRC. The Personal Savings Allowance means basic-rate taxpayers can earn up to £1,000 in savings interest per year without paying tax; higher-rate taxpayers receive a £500 allowance and additional-rate taxpayers receive nothing. Interest above the allowance is taxed at your marginal rate. If you complete a self-assessment return, declare savings interest in the relevant box; if you do not file a return, HMRC adjusts your PAYE tax code automatically for amounts above the allowance.
What to check before opening a notice account
Before committing to a notice account, confirm the following: whether the rate is fixed or variable and what triggers a change; whether partial withdrawals are allowed or if you must withdraw the entire balance; whether a minimum notice period applies for each withdrawal or just the first; the minimum and maximum deposit limits; how interest is calculated and credited (daily, monthly, annually); and whether the provider is covered by the FSCS. For accounts held with banks operating under European compensation schemes, the protection level and claims process may differ from the UK FSCS framework.
Related guides
- Best easy access savings accounts UK 2026
- Best fixed-rate bonds UK 2026
- Best regular savings accounts UK 2026
- All Banking guides →
Frequently asked questions
Can I make multiple partial withdrawals from a notice account?
This depends on the provider. Some notice accounts allow unlimited partial withdrawals subject to each requiring the full notice period. Others require you to close the account or allow only one active notice at a time. Check the specific terms before opening.
What happens if I need my money before the notice period ends?
Most notice accounts do not allow early access except in exceptional circumstances such as the account holder's death or terminal illness. Some providers offer penalty-based early access, forfeiting a set number of days' interest. If you need regular or unpredictable access to funds, a notice account may not be appropriate.
Is a notice account covered by the FSCS?
If the account is held with a UK-authorised bank or building society, the FSCS protects eligible deposits up to £85,000 per person per firm. Check the provider's authorisation status on the FCA Register at register.fca.org.uk before opening an account.
How is interest on a notice account taxed?
Interest is taxable income. Basic-rate taxpayers benefit from a £1,000 Personal Savings Allowance; higher-rate taxpayers receive £500. Interest above the allowance is taxed at your marginal rate. Banks report payments to HMRC and do not deduct tax at source, so any additional tax owed is collected via self-assessment or PAYE code adjustment.
Can I hold a notice account inside an ISA?
Some providers offer notice accounts within a Cash ISA wrapper. Interest earned within the ISA is tax-free and does not count against the Personal Savings Allowance. Contributions are limited by the overall ISA allowance of £20,000 per tax year for 2025/26.
How we verified this guide
All figures and rules in this guide were verified against primary regulator and government sources during May 2026. Personal Savings Allowance figures were confirmed against HMRC's 2025/26 published rates. FSCS limits were verified at fscs.org.uk. FCA notice requirements for rate changes were cross-referenced with the Payment Accounts Regulations 2015.
Primary sources
- HMRC - Personal Savings Allowance guidance
- FSCS - Deposit protection limits
- FCA - Consumer savings account guidance
- MoneyHelper - Notice savings accounts
Last reviewed: May 2026.