First Active has introduced a new 40-Day Notice deposit account. A minimum opening lodgement of £5,000 (#6,350) is required. The interest rate begins at 4.25 per cent APR for amounts up to £24,999 and increases in three further bands to 5.10 per cent APR.

The interest rates are variable and subject to market movements in interest rates, a First Active statement said.

The account requires 40 days notice before withdrawals.

If the balance in the account drops below £5,000, the account will pay the lower Instant Access Savings Account rate.