Easy access, notice or fixed term: which savings account when
How easy access, notice and fixed-term savings accounts differ, when each makes sense, and what changes for Cash ISAs in April 2027.
Oli Butcher, CEO, Riff
Published 18 October 2026 · Last reviewed 18 October 2026 · 2 min read
Short answer
Keep money you might need soon in easy access, and put money you won’t touch for a while into a notice or fixed-term account, which usually pays more. The trade is access for rate: the longer you can leave it, the more you tend to earn.
How do the three types compare?
| Account | Getting your money out | Rate | Rate can change? | Suits |
|---|---|---|---|---|
| Easy access | Any time | Usually the lowest of the three | Yes, at any time | An emergency fund, money for the next few months |
| Notice | After a notice period, often 30 to 120 days | Usually higher than easy access | Usually yes | Money you’ll need, but can plan for |
| Fixed term | At the end of the term, often 1 to 5 years | Usually the highest | No, fixed for the term | Money you won’t need until a set date |
The Bank of England’s figures show the gap. In August 2026, the average rate on households’ instant access and current account balances was 1.65%. The average rate on new fixed-term deposits was 4.24%.
How much should I keep in easy access?
There’s no single right number. A common rule of thumb is three to six months of essential spending, kept somewhere you can reach straight away. Anything beyond what you’re likely to need soon can usually work harder in a notice or fixed-term account.
What are the catches?
- Easy access rates move. Banks can cut them at any time, and introductory bonuses often end after a year.
- Notice means waiting. You give notice and get the money when the period ends, not before.
- Fixed means fixed. Many accounts don’t allow early access at all. Those that do usually charge a penalty, often some of the interest.
Where do Cash ISAs fit?
A Cash ISA can be easy access, notice or fixed term. The difference is tax: interest earned in an ISA is tax-free. Outside an ISA, the Personal Savings Allowance lets basic-rate taxpayers earn £1,000 of interest a year tax-free, and higher-rate taxpayers £500. Additional-rate taxpayers get none.
The annual ISA allowance is £20,000. From 6 April 2027, savers under 65 will be able to put only £12,000 of that into a Cash ISA. The rest can go into other ISAs, such as a Stocks and Shares ISA. Savers aged 65 and over keep the full £20,000 for Cash ISAs.
How do I decide?
- Work out what you need to keep to hand, and keep that in easy access.
- Match the rest to when you’ll need it. A house deposit in two years suits a two-year fix better than easy access.
- Check the rate after any bonus ends, not just the headline rate.
- Keep each bank within the FSCS limit of £120,000 per person.
Sources
- Bank of England effective interest rates, August 2026
- YBS: 2027 changes to the Cash ISA limit
- Income tax rates and allowances 2026/27
This guide is general information, not financial advice. Rates and rules change, so check the latest position before you act.