The reward for sacrificing instant withdrawals and taking a "notice" account has been whittled away by savings providers.

Banks and building societies are tying savers into old-fashioned “notice” accounts that pay less than the going rate on alternatives which do not contain withdrawal restrictions. Analysis by the Telegraph found that savings providers have cut the rates on notice deals so drastically over the last year that the incentive to give up immediate access has disappeared. The accounts, which typically require customers to give 90 or 180 days’ notice to make withdrawals, staged a comeback in the summer of 2012, having previously been phased out by banks. By October 2012, five providers paid more than 3pc on a taxable notice account – far more than the top easy access rate of 2.85pc. The best deal, 180-day notice account from Hanley Economic, paid 3.2pc before tax, providing an extra £70 a year on each £20,000 saved............Read more here