Back in 2005 a number of banks and building societies launched savings accounts aimed specifically at people aged over 50 and above.
If you are aged over 50, you may have repaid your mortgage and no longer have the expense of supporting your children. This means you are likely to have greater disposable income. If you are looking to supplement your income at a low risk, then savings accounts are a credible option.
Over 50s savings accounts can be found with many different features. Some may be instant access where you do not have to give any notice to withdraw your money. Others may be notice savings accounts where notice has to be given to withdraw cash without penalty. Minimum investment levels range from £1 and interest can be paid on an annual or monthly basis. Monthly interest may suit you if you are looking for regular income from interest payments. Accounts can be found that are operated by branch, post, telephone or the internet.
Many of these accounts include bonus rates of interest depending on the number of withdrawals made, so it is important that you check the terms and conditions before opening an account. Some accounts also require direct pension credits to be paid into the account on a regular basis.
Rates on these savings accounts are competitive, but you should not just look at accounts specifically for this age group, as some savings accounts are open to savers of all ages that offer slightly better rates depending on notice period and amount invested. For those people not so concerned by risk, other investment options may be more suitable.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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