Notice Deposit Accounts
A notice deposit or notice account is a type of interest bearing bank account offered by banks and credit unions that allows a client to invest savings in an account and earn an agreed interest return with a set number of days notice, eg 32 days before availability of funds. Under Basel III some banks may incorporate more Notice account type of products in their product design to increase the "stickiness" of their deposits. Notice deposits may provide a bank with liquidity in the event of a 30 day stress scenario. As an alternative to a savings account it differs by it requires waiting for the agreed notice period before access to the funds unlike the immediate access from a savings account. In addition it is also compensated with a higher rate of interest.