Notice Savers: A mix between a savings account and term deposit

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. So if you sign on for a 60-day notice saver, you will need to tell the bank 60 days in advance if you want access to your money.

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 notice period 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.

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.

It can be linked with your regular bank account

As with most high interest savings accounts, you will need a bank account to be linked to your notice saver. Check to make sure that your current bank will allow you to link your everyday account with a notice saver offered by another institution.

Notice saver vs term deposit vs savings account

Notice savers are similar to savings accounts and term deposits, however there are a few key differences.

Savings accounts: A savings account usually offers a higher interest rate than a notice saver and term deposit, and you can access your money instantly when you need it. However, there are often monthly account conditions to meet so it's not a set-and-forget option. You can compare savings accounts to see how the rates compare.

Term deposit: A term deposit is locked for the duration of the term length, which can be between 1 month to 5 years. Term deposits sometimes offer better rates than notice savers, in exchange for locking your money away for longer. If you dip into your savings regularly a term deposit may not be the right solution for you.

Our expert says

"Unlike a term deposit where your initial deposit is locked in, with a notice saver you can add more money into the account whenever you want.

But another key difference is that the interest offered on notice saver accounts is variable, meaning it can change at any time. In comparison, a term deposit rate is fixed meaning it can't change until your term reaches maturity."

Alison Banney

Editorial Manager, Money

What are the pros and cons of opening a notice saver account?

Have more questions about notice savers?

• Which Australian banks currently offer notice saver accounts?

  For personal use you will find notice savers with Rabobank and AMP, although AMP is only offering it at the 31 day notice. Businesses can also apply for this product with Westpac.

• Is a notice saver an option for my SMSF?

  Yes, these accounts are available for an SMSF, but you should check with its terms first.

• How do you apply for a notice saver?

  The process for applying for a notice saver account is the same as any other savings account or bank account. You can do it online by completing the online application form on the bank's site. You will need to provide the bank with your personal details, proof of identification and the details of your linked account.

• Are notice savings accounts worth it?

  Notice savings accounts can be worth it if you are looking for a higher interest rate and do not need immediate access to your funds. They are ideal for savers who want to earn more interest than a regular savings account but still want some flexibility compared to term deposits.

• Can you withdraw money from a notice account?

  Yes, you can withdraw money from a notice account, but you must give the required notice period, such as 30 or 90 days, before accessing your funds. If you need immediate access, you may have to pay fees or penalties or lose some interest.

Written by

Alison Banney

Editorial Manager, Money

Alison is an editor at Finder and a personal finance journalist with over 10 years of experience, having contributed to major financial institutions and publications such as Westpac, Money Magazine, and Yahoo Finance. She is frequently quoted in media outlets like SmartCompany and SBS, offering expert insights on superannuation and money management. Alison holds a Bachelor of Communications in Public Relations and Journalism from the University of Newcastle, and has earned three ASIC RG146 certifications in superannuation, securities and managed investments and general financial advice, ensuring her expertise is fully aligned with ASIC standards. See full bio

Alison's expertise

Alison has written 651 Finder guides across topics including:

• Superannuation
• Savings accounts, bank accounts and term deposits
• Budgeting and money-saving hacks
• Managing the cost of living