When you hit your 50s life can take a different twist. Priorities shift, finances change, and you may find more options open up for you in terms of savings accounts. But not all savings accounts are right for everyone, and you’ll find many financial institutions have specialised over 50s savings accounts.
In this article, we take a quick look at all you need to know about savings accounts for the over 50s, and unravel whether it’s really worthwhile setting up a savings account based on your age.
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What are the benefits of over 50s savings accounts?
Silver era savings accounts sound like an exclusive and attractive option – and they can be. What you really want from a savings account is one with a minimum deposit, a generous interest rate and a sign up bonus. Here are some of the benefits you can experience when you open an over 50s savings account:
Competitive interest rates – The whole point of a savings account is to stash money away and let it grow. An over 50s savings account should have a competitive interest rate to facilitate that.
Securing your financial future – With retirement on your mind or later life adventures bubbling beneath the surface, it’s important that your over 50s savings account makes you feel safe and secure about your financial future. However, you’re probably not looking for a very long-term savings account.
Access choices that work for you – There are a couple of different options when it comes to over 50s savings accounts. If you want easy access to your money and minimal restrictions, you might opt for an easy access savings account. If you want to get serious about your savings, you could look at fixed rate bonds or notice accounts. Notice accounts (more on those below) may offer more competitive rates, but ‘notice’ will need to be given to your provider before you can make a withdrawal.
Different types of accounts for the over 50s
There are different types of accounts geared towards those in the latter half of their life who are looking to save. You will often see these accounts touted as over 50s savings accounts and while they can be useful, they don’t always offer anything different to other types of savings accounts. What savers typically want (at any point in life), is an account that offers the most competitive interest rates and that is well matched to your needs. Here are some of the accounts on offer if you’re over the age of 50.
Easy access savings accounts
Instant or easy access savings accounts are exactly what they sound like – a savings account that allows easy access to your money. These types of savings accounts tend to have minimum restrictions, meaning that you can top up and withdraw as much as you like without having to give notice. These accounts are great if you want flexibility and easy management when it comes to your savings.
Notice accounts are a little more structured and restrictive when it comes to withdrawing your money. If you’re serious about saving and want to build up a nest egg, that can be a good thing. A notice savings account will often offer more competitive interest rates than more flexible types of savings accounts. The notice period can vary, but is usually between 30-180 days. These accounts are great for those who want more structure around their savings.
Fixed rate bonds
Fixed rate bonds are another important type of savings account for over 50s to consider. With this type of savings account, you lock your money away for a fixed period of time – and you also lock in the interest rate. This can be great for those times when you have a stash of cash that you don’t need access to for a fixed amount of time. Likewise, you can also avoid interest rate uncertainty. Fixed rate bond terms can run for six months to five years. Typically, the longer you lock your money in for, the better interest rates you stand to earn.
Are over 50s savings accounts worth it?
Over 50s savings accounts can be worth it, depending on the rates of interest and the terms that are being offered. Sometimes, banks will upsell over 50s accounts, but they may not have any additional value over a standard savings account. That’s why it’s important to compare the market and read the small print. If you find an over 50s savings account with favourable rates and flexible terms, it could certainly be worth the investment.
Pros and cons of savings accounts for over 50s
Easy access savings accounts for the over 50s could be a great option if you’re looking for a flexible way of growing your savings. If you want a more competitive interest rate and more of a barrier between you and your spending, a notice account could work out better. For some people over 50, having the peace of mind that you can have easy access to your finances is more valuable than locking in higher rates. Here are a few pros and cons of both types of savings accounts to consider.
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How to choose the best savings account for over 50s
Finding the best savings accounts for the over 50s means balancing high interest rates with other key factors, such as protection and management. Comparing the market will help you to see black and white numbers when it comes to interest rates, but you should always read the small print to check the finer details of how an account will work for you.
Here are some things to consider when choosing an over 50s savings account:
Interest rates – Interest rates should be your first and foremost priority when picking an account that works for you. Raisin lets you compare savings accounts so you can see how the numbers look. From easy access savings to notice accounts and even Fixed rate bonds for those who want to make their money work a bit harder, Raisin can connect you with banks that offer competitive interest rates.
Account management – What do you want from your savings account when it comes to self management? Do you want something you can open in a swift and easy manner or something you can access at all times? Or maybe you need something with stricter policies to keep your rainy day fund truly out of reach and ever growing?
Protection – Always look for an account that comes with FSCS protection. This will ensure that your money is protected if your bank collapses. Typically, FSCS protection will cover up to the value of £85,000 per person, per banking group.
Over 50s savings accounts can be a solid choice if you find one that offers a truly competitive deal. However, you might find savings accounts that are better suited to you that aren’t necessarily targeted at the over 50s, helping you to make the most of your money.
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