While fixed rate bonds still offer a higher return, notice accounts offer more flexibility as they let you access your money within a matter of months. You just have to give your provider advance warning.

Data from Moneyfacts shows the average notice account now pays 0.54 per cent, up from 0.37 per cent six months ago.

The top notice account is from Recognise Bank. It requires 95 days’ notice and pays 1.10 per cent. In comparison, the top deal in April offered just 0.65 per cent.

Rachel Springall, finance expert at Moneyfacts.co.uk, said: “Notice accounts are flourishing as savings providers have significantly improved rates and expanded choice. There are now more notice account options available, the highest count since December 2020.

“Savers looking for a decent return on their cash may have noticed a rise in short-term fixed bond rates recently, but a notice account may be a more suitable alternative for those who are not comfortable with locking their cash away for too long.

“Unlike fixed bonds, notice accounts pay a variable rate, but the ability to give notice to access funds may be more favourable to some savers and the maximum notice term today is about four months.

“Consumers comparing different savings accounts may also appreciate that most notice accounts will allow them to deposit funds little and often, unlike fixed bonds which typically require an upfront lump sum at the point of application.

“There are many notice accounts that pay better variable rates than easy access accounts too if savers are happy to give notice to access their cash. As the market continues to improve, it would be wise for consumers to keep a close eye on the top rate tables and be quick to apply so that they are not left disappointed.”