Written by Karen Bryan
Shawbrook Bank is offering two notice savings accounts. The 95 day notice account pays 1.6% variable gross (before deduction of income tax). The 125 day notice account pays 1.7% variable gross.
These accounts don’t look good to me as I’m earning 1.7% variable gross in my Nationwide Loyalty Saver account with unlimited withdrawals.
I read the small print about variable rates on the Shawbrook Bank savings accounts. The rate paid on your savings can be reduced immediately if it is either, a reduction of not more than 0.25%, or cumulative reductions of less than 0.50% in any one rolling 12 month period.
I don’t like the sound of that. For example, if the interest rate paid on the Shawbrook Bank notice accounts dropped by 0.25% and I wanted to shift my savings to another account earning a better rate, I’d have to give 125 days notice, during which time my savings would be earning that lower rate. At least in an instant access savings account like the Nationwide Loyalty Saver, you can shift your money straightaway if the interest rate falls.
I reckon that if you’re sure that you won’t need access to your savings during the next 12 months, that putting your cash into a Post Office One Year Fixed Rate Account paying 1.99% fixed gross, is a better bet, as the rate of interest you’ll earn is guaranteed for the 12 month period.
Interest rates correct on 27 September 2013.