Notice Savings Account
Notice Savings Account Meaning:
A notice savings account, also known as a notice deposit or notice account is a type of bank account offered by banks for savings. It combines the features of a savings account and a fixed term deposit account and is similar to a savings account in that you can add to the balance at any time as well as having a variable interest rate with tiered rates like some HISA accounts (high interest savings account). When you want to access funds you have to wait an agreed notice period with each bank offering having their own notice periods such as 30, 32, 60 or 90 days. They differ from a fixed term deposit as there is no maturity date and it allows you access some or all the funds after the notice period date is reached.
A notice savings account, also known as a notice deposit or notice account is a type of bank account offered by banks for savings. It combines the features of a savings account and a fixed term deposit account and is similar to a savings account in that you can add to the balance at any time as well as having a variable interest rate with tiered rates like some HISA accounts (high interest savings account). When you want to access funds you have to wait an agreed notice period with each bank offering having their own notice periods such as 30, 32, 60 or 90 days. They differ from a fixed term deposit as there is no maturity date and it allows you access some or all the funds after the notice period date is reached.
This type of banking product has been offered by banks to meet some of the new prudential Basel III standards that require deposit-taking institutions to have high-quality liquid assets that can be converted into cash to meet liquidity needs, for a period of 30 days.