DF Capital has relaunched its 90-Day Notice Account with 5.18 percent interest, 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 relaunched its 90 Day Notice Account (Issue One). Paying 5.18 percent gross at investments worth £1,000, the account takes the market-leading position in the notice and monthly interest arenas.
“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.
“Interest is paid monthly, which may be an enticing option for those looking to boost their income each month. Adding to its appeal, further additions are permitted via a nominated account. Overall, the deal earns an Excellent Moneyfacts Rating.”
While DF Capital may be offering an attractive deal, competition doesn’t fall too far behind.
Investec Bank plc’s 90-Day Notice Saver pays 5.13 percent gross on savings between £5,000 and £250,000. Interest is also paid monthly.
The Bank of England held the Base Rate at five percent again this month, but markets forecast a drop coming before the year is out.
Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, the online investment platform, commented: “Those that want to preserve that bumper return must move fast.
“With at least one further interest rate cut expected this year and inflation expected to edge up again in the final quarter, anyone with money idling in an account offering an ultra-low return should hunt out a better deal while interest rates remain relatively high.
“Savings rates have already retreated from their high and while the best savings accounts still top the five percent mark, that picture may change very swiftly.”
