DF Capital has raised the interest rate on its 90-Day Notice Account to 5.11% AER, earning an “excellent” Moneyfactscompare rating.
Notice accounts act as a middle ground between easy access and fixed rate savings accounts.
These accounts allow people to withdraw money whenever they need to, but they have to give the bank an agreed amount of notice or they could face penalties.
Savers need a minimum deposit of £1,000 and interest is paid monthly.
Commenting on the deal, Caitlyn Eastell, spokesperson at Moneyfactscompare.co.uk, said: “DF Capital has launched a new 90 Day Notice Account this week.
“The fourth issue pays 4.99% gross or 5.11% AER monthly at investments worth £1,000, the account takes the market-leading position in the monthly interest sector.
“Earlier access is not permitted, so 90 days’ notice will need to be given for savers to access their cash, additionally they will need to withdraw a minimum of £1,000.
“On a positive note, further additions are permitted at any time via a nominated account. Overall, the deal earns an Excellent Moneyfacts Rating.”
While DF Capital may be offering a more attractive rate, it isn’t currently topping the market.
Plum’s 95-day Notice Pocket Premium account offers an Annual Equivalent Rate (AER) of 5.2% from deposits of just £1. Savers must gve 95 days’ notice before funds are withdrawn, and interest is paid daily.
Britons are being urged to snap up the top rates fast as savings interest rates are falling. Last week, the Bank of England cut central interest rates for the second time this year, bring the Base Rate to 4.75%.
Adam Thrower, head of savings at Shawbrook, commented: “This rate cut might seem like bad news for savers, as it’s likely to push interest rates down. But there are still smart options out there.
“Leaving money in accounts to default to ‘standard’ rates, which are usually lower, could mean missing out on valuable interest over time. It’s also worth looking at lesser-known providers who offer the same FSCS protection as mainstream banks but often with more attractive rates. With interest rates falling, it’s crucial to shop around for the best savings deals.”
