Silver savings accounts looking grey

Published:

25/08/2009

Topic:

Press Release,Money,Savings

There are a number of easy access accounts available for over 50s savers, but a look at the wider market reveals these products are falling short in rates.

• Over 50s easy access savings accounts fall short compared to standard deals

The top performing over 50s account from Saffron BS offers 2.3 per cent AER and while this is reasonably competitive in a low base rate environment, it falls below the rates offered by standard easy access accounts. Savvy seniors could get a higher rate of interest if they opted for the 1st Class Postal savings account from Coventry BS, offering 3.30 per cent AER.

Silver savers have also been penalised more than others in the last year as the best rate available has dropped by 4.15 per cent in a year, compared to a drop of 3.25 for easy access accounts obtainable by all.

Kevin Mountford, head of banking at moneysupermarket.com, said: "Over 50s customers are an attractive prospect for banks and building societies as they tend to have built up a reasonable amount of savings, yet silver savers seem to be unfairly penalised. It's hard to see what added benefits the over 50s are getting from savings accounts when, based on headline rate, there are better easy access accounts on the market

"Once upon a time the over 50s products were aimed at branch based users and as such there was some justification that rates may be a little off the pace, however now that we see more and more of this age group seeking direct on-line products, there's no reason why they shouldn't be enjoying some of the best rates in the market.

"Savers should always shop around and avoid being seduced by targeted products that may not offer the best rates. Over 50s savings accounts need to be evaluated against the wider market and although they are competitive in the current low rate environment, a savvy silver saver could make their money work harder in a standard account."

2009 Over 50's Accounts Vs Best Available   

2008 Over 50's Accounts Vs Best Available   

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