A term deposit & a savings account enter a bar…
allows you to make regular deposits just like a regular at-call savings account. There is no maturity date like a term deposit, the account is ongoing. When you want to get your money out your need to give notice. Common notice periods for a withdrawal from a notice saver account are 1 month, 2 months or three months. You can cancel your withdrawal request at any time. The account stays open as long as there is still money in it.
In return for agreeing to give notice of your intention to withdraw, the notice saver account gives you an attractive variable rate of interest. The interest rate gets more attractive as the notice period increases.
Which banks offer notice saver accounts?
New bank funding rules starting 2017 favour stable deposits over at-call deposits, so more banks and credit unions are expected to introduce notice saver accounts in the next few months.
The first to market with a notice saver product was online bank RaboDirect.
RaboDirect has three notice saver accounts. The 31-day Notice Saver account is offering a variable rate of 2.60 per cent. The Notice Saver 60 is offering a variable rate of 2.65 per cent and the RaboDirect Notice 90 is offering 2.75 per cent. Those great rates come without the strings attached to many other savings account bonus rates, like minimum deposit rules.
Investec also has a 31 day notice saver account and Westpac Institutional has a corporate notice saver account called Evergreen.
ANZ Bank has tweaked the notice saver concept and created the ANZ Advance Notice Term Deposit. This is just like an ordinary term deposit but you get a better rate for agreeing to give 31 days notice of your intention to withdraw funds early. Fees and charges also apply to early term deposits withdrawals.
The ANZ Advance Notice Term Deposit 50 has an even better rate for a slightly longer notice period.
You can research and compare savings accounts from all of Australia’s major banks and credit unions here.
You can research and compare term deposits from all of Australia’s major banks and credit unions here.