- New customers, boost your business savings with up to 4.22% AER* variable
- Interest is paid monthly & no limits or fees on withdrawals
- FSCS Protected for eligible deposits up to £85,000
2 Products Compared
Allica Bank 95 Days Notice Savings Account- Interest Rate:4.15% AER (Variable)
- Minimum Deposit:£20,000
- Maximum Deposit:£2M
- Access Type:Notice
- Access Methods:App / Online
- FSCS Protected for eligible deposits up to £85,000
- Apply online today
- Minimum Initial Deposit – £20,000
- Minimum Age 18 Years
- Available for registered companies based in the UK
Allica Bank 180 Days Notice Savings Account-
Interest Rate:4.20% AER (Variable)
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Minimum Deposit:£20,000
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Maximum Deposit:£2M
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Access Type:Notice
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Access Methods:App / Online
A Comparison of Notice Business Savings Accounts in the UK
For businesses seeking a higher return on their savings without committing to locking funds away for a fixed term, a notice account offers a compelling middle ground. These accounts are designed for companies that can plan their cash flow in advance, rewarding them with more competitive interest rates than they would typically earn from an easy-access account. By understanding how they function, you can determine if a notice account is the right strategic fit for your business’s surplus capital.
How Notice Business Savings Accounts Work
A notice business savings account operates on a simple principle: you can deposit funds freely, but you must provide a specified period of notice to your bank before you can make a withdrawal. This notice period is agreed upon when you open the account and is the key feature that distinguishes it from other types of savings products.
Understanding Notice Periods
The length of the notice period is the most important characteristic of these accounts and can vary significantly between providers. Common notice periods in the UK market range from 30 days up to 180 days or even longer in some cases. As a general rule, accounts with longer notice periods tend to offer higher interest rates. This structure makes them ideal for funds earmarked for future, planned expenditure, such as a tax bill, a VAT payment, or a scheduled asset purchase.
Key Benefits of a Notice Account
The primary advantage of a notice account is the enhanced rate of interest compared to an instant-access alternative. By giving the bank the security of holding onto your funds for a guaranteed period, they reward you with a better return. This can make a substantial difference to the growth of your business’s savings over time. Furthermore, the requirement to give notice can instil a level of financial discipline, discouraging impulsive spending and helping to ring-fence funds for their intended purpose.
Potential Drawbacks to Consider
The main limitation of a notice account is the restricted access to your money. You cannot withdraw funds on demand. If an unexpected business emergency arises and you need immediate access to your cash, you will be unable to get it from your notice account until the notice period has been served. For this reason, it is unwise to place all of your company’s spare cash into a single notice account. There are a few notice accounts that allow access, but a penalty is incurred, although this is a less common feature.
Important Factors for Comparison
When selecting a notice account, a thorough comparison of several features is necessary to find the best fit for your business.
Interest Rate Conditions
Look closely at the interest rate offered. Is it a variable rate that the bank can change over time, or is it fixed for a certain introductory period? The Annual Equivalent Rate (AER) should be used for comparison, as it shows the effect of interest being compounded annually.
The Notice Period and Withdrawal Process
Assess the notice period itself and ensure it aligns with your company’s cash flow cycle. Investigate the process for serving notice, can it be done easily through an online portal or does it require a more formal written instruction? Also, check if there are any limits on the number of withdrawals you can make or the amount you can withdraw at one time.
Deposit and Balance Requirements
Be aware of any minimum deposit required to open the account, as well as any maximum balance limits. Some accounts may also require a minimum balance to be maintained in order to earn the advertised interest rate.
Account Management
Consider the practical aspects of managing the account. Does the provider offer online banking? Is there a dedicated business support team you can speak to? For larger businesses, the ability to set different access and authorisation levels for multiple users might be a key requirement.
The Security of Your Deposits
Ensuring your capital is safe is paramount. The Financial Services Compensation Scheme (FSCS) provides protection for eligible businesses, which includes most UK limited companies and sole traders. The scheme protects deposits up to £85,000 per authorised financial institution. If your savings exceed this amount, you should consider spreading them across different banking institutions to ensure full protection.
Notice Business Savings Account FAQs
1. How do I give notice to withdraw my money?
The method for giving notice varies by provider. Most banks allow you to give notice easily via their online banking platform or mobile app. For others, you may need to submit your request via email or portal, or by calling their business banking team. You should confirm the exact process before opening the account.
2. What happens if I need my money in an emergency and can’t wait for the notice period?
Generally, you cannot access your funds before the notice period has ended. Unlike fixed-term accounts, where there can sometimes be an option for early access with a penalty, notice accounts are stricter. Once notice is served, you must wait for it to expire. This is why these accounts are not suitable for funds you might need unexpectedly.
3. Is the interest I earn on a notice account taxable?
Yes. For limited companies, the interest earned is classified as business income and is subject to Corporation Tax. For sole traders and members of a partnership, the interest is added to their other income and is taxed under Income Tax rules.
4. Can I add more money to my notice account after my initial deposit?
Yes, one of the key features of a notice account is that you can typically continue to add funds to it whenever you have surplus cash. This allows you to build up your savings pot over time. Always check the account’s specific terms and conditions regarding ongoing deposits.
5. Are the interest rates on notice accounts fixed?
Most notice accounts have variable interest rates, meaning the rate can go up or down over time, often in response to changes in the Bank of England Base Rate. Some providers may offer a fixed rate for an introductory period, after which it will revert to a variable rate. Always check the rate type before you apply.