Like most online savings accounts, the Notice Saver has a variable interest rate and no fees. The rate is tiered depending on the notice period and the account balance. There are three notice period options: 31, 60 and 90 day but the best rates are for the 90 day notice at 2.70% for balances up to $250,000.
The 31 day notice account has a rate of 2.50%, and the 60 day is 2.55% for balances up to $250,000 which fall under the Government guarantee on deposits. For balances between $250,000 and $2 million the interest rate is 2.40% for 31 day notice, 2.50% for 60 days notice and 2.65% for 90 days notice. For balances over $2M, the 31 and 60 day Notice Saver accounts have a 1.90% variable interest rate, or 2.10% for the 90 day Notice Saver.
The beauty of the Notice Saver is that, unlike a term deposit you can keep adding money to the account whenever you like. And unlike a savings account, you can't access your money at a whim. You can withdraw funds at anytime but you need to give notice. Your notice period will depend on what notice period you select when you open the account (31, 60, 90 days).
Who it's good for:
There is no minimum balance requirements so the Notice Saver is a great account if you are trying to build up your savings over a period of time and want to avoid the temptation of mid-year sales and other impulse buys.
It is also a good savings account for people with self-managed super funds (SMSF) or sole traders who need to put away cash for GST instalments but don't want a fixed term investment for their money (Different rates apply).
You must also be an Australian resident over the age of 18 to open a Notice Saver account.
Impulse buyers beware. If you don't provide RaboDirect with the minimum notice period you won't be able to get your money. This could be seen as a plus if you're trying to kick the spending habit, but it is recommended that you keep a small stash in an at-call high interest savings account just in case you need some money in a hurry.