The Finder app is here! 🥳🥳 Download the new Finder app!
Get your savings sorted.Take control of your money with the all-new Finder app. Now available for free for iOS and Android. It's your new way to save, sorted.
Notice savers are a relatively new banking product offered by some Australian banks. They allow you to earn interest on your savings in a similar way to term deposits, but with a small difference. Rather than keeping your money "locked away" for a specified term, notice savers let you pick how much notice to provide a bank before they release your funds. Although not as easily accessible as what you get with an at-call savings account, you do get more flexibility than with a term deposit.
Compare notice savers below
Rates last updated April 7th, 2020
How does a notice saver work?
Notice savers for personal use are offered at three different tiers: 31 day, 60 day and 90 day. The rate of return also increases as you increase the terms. If you want to access your savings after the account has been activated, you give the bank notice and they will release the money in the time frame that you choose.
In other words, if you sign on for a 60-day notice saver, you will need to tell the bank 60 days in advance of day you want access to your funds. If you occasionally dip into your savings, this could be of benefit to you. Although not instant, it allows access to your funds when you want yet still allows you to earn interest on your savings.
Jim and his notice saver
Jim has $10,000 in savings and would like to earn interest on the balance with the option of being able to access his funds when he wants. He considered putting his money in a term deposit, however Jim also plans to move out of his parent's home within 6 months. Due to this, he can't commit to "locking away" his funds in a term deposit and to pay extra fees for taking his funds out before maturity.
Instead, he has opted to put his savings in a notice saver. This allows him to earn interest but also the flexibility to access his funds in case of emergencies. Upon opening his notice saver, he opts for a 31-day notice period.
Three weeks after opening the notice saver, he finds an apartment to rent so he requests a moving date that falls after the 31-day notice period. This means he can use some of his savings to pay for moving costs. At the end of his notice period, Jim can also benefit from some extra cash earned through interest.
How do I compare notice savers?
Notice savers have unique features that could make them an appealing option for those who want to reach a savings goal, and need an extra incentive to get there. When comparing them, consider the following:
A notification term that suits you
You do have to choose how long of a notification you want to give when you open the account, which will require some thought as to your future needs. The lowest rates are paid on 31 day notices, and get progressively higher as you move to 90 days.
Competitive interest rate
The interest rate will have a direct impact on the return on your investment. If your main objective is to increase your savings rapidly you will want to choose the longer notice periods with the higher rates.
The ability to constantly add to your balance
Unlike term deposits, notice savers lock you out from withdrawals but not on deposits. That means you can continue to add to the principal amount to increase your savings. Interest calculation
You get the most benefit in a savings product that calculates the interest daily and makes a monthly deposit. This allows you to benefit further with compound interest, where your earnings come from the combined total of your principal and earned interest amount.
Low minimum deposit requirements
You will want to check to ensure that you are able to meet any minimum deposit requirement for a notice saver account.
Digital banks Volt and 86 400 have each cut the interest rate on their savings account by 25 basis points, following the latest RBA rate cut. Read more…
Xinja has closed its market-leading Stash savings account to new customers following the RBA rate cut, but you can still get up to 2.50% p.a. on your savings elsewhere. Read more…
What are the pros and cons of opening a notice saver account?
Pros
Interest rates. You will get the benefit of higher interest rates with a notice saver than you would with a standard savings account.
Continue saving. You have the option of continuing to add funds to this savings account. In some cases you can even set up regular payments from your transaction account into your notice saver.
More flexibility. You have the ability to make investment decisions on shorter notice than you would if the money was inside of a term deposit.
Cons
Notification time. Even though you are not locked in as with a term deposit, notice savers are still not ideal if you need your savings fast to cover the cost of an emergency.
Variable interest rates. A fixed interest rate guarantees the growth of your money at a steady rate, while with a variable rate you could potentially lose some of the interest earnings if there is a drop in the market.
Considerations before opening an account
As with any type of savings product, you must carefully weigh what your goals and needs are before making a final choice. This will help you to avoid:
Missing out on higher rates. If your goal is a couple of years into the future, a term deposit will give you a better rate of return for your investment than a notice saver.
Not meeting an emergency. This type of account still requires a waiting period before you can access the money. If you do not have other means to cover an emergency, you may want to consider splitting your savings and keeping some in an on call account just in case.
Yes, these accounts are available for an SMSF, but you should check with its terms first.
The process for applying for a notice saver account is the same as any other savings account. You will need to provide the bank with your personal details, proof of identification and the details of your linked account.
Shirley Liu is Finder's global program manager. She was previously the publisher for banking and investments and has also written comparisons for energy, money transfers, Uber Eats and many other topics. Shirley has a Master of Commerce and a Bachelor of Media, Journalism and Communications from the University of New South Wales. She is passionate about helping people find the best deal for their needs.
6 ways to get the best term deposit rateThere are plenty of ways to maximise your term deposit rate and get yourself a better return, even in this low-rate environment. Â
UBank launches world's first green term depositMoney invested in the UBank Green Term Deposit supports green energy projects such as solar, wind and marine energy, and low carbon buildings.
RACQ Bank Term DepositChoose a term from one month to five years and earn a competitive, fixed interest rate on your deposit. This account is for Queenslanders only.
AMP Bank term deposit $100,000+Earn a competitive interest rate on deposits over $100,000 and enjoy flexible term lengths with the AMP Bank term deposit.
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We compare from a wide set of banks, insurers and product issuers. We value our editorial independence and follow editorial guidelines.
finder.com.au has access to track details from the product issuers listed on our sites. Although we provide information on the products offered by a wide range of issuers, we don't cover every available product or service.
Please note that the information published on our site should not be construed as personal advice and does not consider your personal needs and circumstances. While our site will provide you with factual information and general advice to help you make better decisions, it isn't a substitute for professional advice. You should consider whether the products or services featured on our site are appropriate for your needs. If you're unsure about anything, seek professional advice before you apply for any product or commit to any plan.
Products marked as 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money here.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labelling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
Providing or obtaining an estimated insurance quote through us does not guarantee you can get the insurance. Acceptance by insurance companies is based on things like occupation, health and lifestyle. By providing you with the ability to apply for a credit card or loan, we are not guaranteeing that your application will be approved. Your application for credit products is subject to the Provider's terms and conditions as well as their application and lending criteria.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
