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BSA – silver saver accounts have role to play

BSA – silver saver accounts have role to play

Category: Savings

Updated: 08/05/2009
First Published: 08/05/2009

MONEYFACTS ARCHIVE
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The Building Societies Association (BSA) has called on the Government to protect savings account aimed at over 50s when the new Equity Bill is enforced.

The bill is set to have its Second Reading in the House of Commons on Monday and, if passed, could outlaw savings products that are popular with a group dubbed 'silver savers'.

The new laws have been drawn up to protect against age discrimination but the BSA says that with interest rates at historically low levels, savers have seen returns on their money diminish sharply, so now is the worst possible time to put such products in jeopardy.

Older people have savings needs that focus on simplicity, reliability, regularity of payment and supplementing other sources of income, says the BSA. It would, therefore, be highly detrimental to older savers if these types of accounts were banned.

Adrian Coles, director general of the BSA, commented that the eradication of such accounts, which meet important social needs of silver savers, was of real concern.

"Whilst we support efforts to outlaw unjustifiable age discrimination, we believe these accounts – like children's accounts – have a legitimate role to play," he added.

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