As you get a bit older, as well as getting wiser, you hopefully get a bit wealthier too! Ideally the mortgage will be repaid as you approach your golden years – or at least will be getting close to repayment – and that means your financial priorities will start to shift.
You'll probably be looking to save and invest more as you look forward to the prospect of a well-earned retirement, and that means you need to find the best savings vehicle possible to make your money go further.
So just where can you find the best savings accounts for the over 50s? Well, although there are plenty of regular accounts on the market, there are a few specialist providers and building society savings accounts that are offered exclusively to "silver savers".
However, these are few and far between, and you also shouldn't assume that such exclusive rates will offer higher returns than generally available best buy accounts – unfortunately, this isn't always the case…
As with regular savings accounts, to really make the most of your money you'll need to be willing to tie it up for a set length of time. Fixed rate accounts will nearly always offer higher rates of interest than their easy access counterparts, and hopefully this won't be too much of a bind – chances are you'll be saving for retirement anyway, and that means you need to get the best returns possible.
So, what about those top rates? Well, in terms of specialist providers, SAGA easily flies the flag. Its 3 Year Fixed Rate Savings Account pays 2.00% interest on a minimum investment of just £1, but as it's a lump sum account you'll probably want to put in a bit more.
However, this certainly isn't the best rate on the market. Just take a look at the top 5 three-year bonds that are available to all:
Shawbrook Bank 3 Year Fixed Rate Bond Issue 17
ICICI Bank HiSAVE Fixed Rate Account
2.70 % AER
Close Brothers Savings Premium Gold 3 Year
FirstSave 3 Year Fixed Rate Bond 6th Issue
Axis Bank Fixed Deposit Account
Accounts paying yearly rates of interest will be ideal for those saving for the long term, or easy access versions will be a great choice for those happy to get a lower rate for the trade-off of being able to withdraw their cash as they please – and there'll usually be smaller deposit requirements than fixed rate bonds too.
But what if you want to use your savings to supplement your income? If you're semi or fully retired then you might like to consider the option of monthly interest accounts, ensuring you can put your hard-earned savings to good use as a valuable income stream.
SAGA's fixed rate bond is also available as a monthly interest option which pays 2.00% AER (or 1.98% gross), but here's our pick of the top 5 monthly interest accounts open to all:
Islamic Bank of Britain 120 Day Notice
Julian Hodge Bank 90 Day Notice Deposit
1.70 % AER
GE Capital Direct GE 100 Day Notice Issue 4
ICICI Bank HiSAVE Remittance Account
Norwich & Peterborough BS Branch Notice Saver Issue 3
As you can see, not only are there minimal over 50s accounts on the market, but they don't tend to fare that well in a straight comparison against the best rates generally available. Saving becomes increasingly important the older we get which means securing the best rate of interest becomes more important too, and that means you might be better off considering general savings accounts as opposed to specialised versions as they could well be more competitive.
However, things could change with the launch of the Pensioner Bond, as announced in this year's Budget. A limited number of these accounts will be available through NS&I and will offer market-leading rates of interest to those aged 65 and above – not technically an account for the over 50s, we admit, but it could well be worth considering for those already in retirement.
The rates haven't yet been finalised but current estimations are that there'll be a one-year bond paying around 2.80% while the three-year version will offer 4.00% – much more competitive than the rates currently available, and therefore bringing silver saving back into the foreground.
It's hoped that the launch of these new accounts could shake up the market with other providers keen to attract the older generation once again, but of course, time will tell. These Pensioner Bonds unfortunately won't be available until January next year, so in the meantime make sure to compare against the best savings accounts that are open to all to get the best deal.
Information correct as of: 07/05/2014
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