The West Brom has launched a new 60-day notice ISA offering 5.25 percent interest – a joint best buy in its category.
Notice accounts act as a middle ground between easy access and fixed rate, and interest is nearly four times higher than last year. These accounts allow people to withdraw money, but they have to give the bank an agreed amount of notice beforehand or they could face penalties.
Sophie Dwyer, Product Manager at the West Brom, said: “Following on from the launch of our new WeBSave 60 Day Notice Account, we’re pleased to be extending this proposition with this new ISA.
“The ISA offers a great alternative product for taxpayers, allowing them to make the most of their savings at a rate that is extremely competitive within the market.”
The WeBSave 60-Day Notice ISA can be opened and managed online with as little as £1.
Withdrawals are permitted but are subject to serving a 60-day notice period. Earlier access is possible at a charge equivalent to 60 days’ loss of interest.
Interest can be paid monthly or annually and up to £1million can be held in the account in total.
Joining the West Brom at the top of the leaderboard in the 60-day notice ISA category is Stafford Railway Building Society’s Cash ISA 60-Day Notice Account, which also offers an Annual Equivalent Rate (AER) of 5.25 percent.
This account can be opened online by savers aged 16 or over with a minimum deposit of £100.
Interest is paid annually and up to £75,000 can be held in the account overall. Withdrawals, closure, or transfers to another account are subject to 60 days written or verbal notice.
Placing just behind is Furness Building Society’s 60 Day Notice Cash ISA (Issue One) offering an AER of 4.1 percent.
The account requires a larger deposit of £1,000 and can be opened in a branch or by post by savers aged 16 or over.
Interest is calculated daily and applied annually on April 5 and similar to the other accounts, 60 days’ notice must be given before a withdrawal or savers will face a penalty equivalent to that 60 days.
Commenting on the market, Rachel Springall, finance expert at http://Moneyfactscompare.co.uk , said while savers may find average interest rates across easy access accounts breached three percent for the first time in almost 15 years following consecutive Bank of England Base Rate rises, not every account has seen the benefits.
Ms Springall said: “It is imperative that savers take time to compare and switch deals. If savers are comfortable to give notice to access their funds, they will find both notice accounts and notice ISAs pay over four percent on average.
“It’s always worth exploring the different savings options available and choosing a deal that suits specific needs.”
