Over 60s savings accounts
When you’re over 60 and approaching retirement, you might start to look at your finances in a new light. With fewer payslips ahead and more plans to relax and play, it’s an important time to feel financially stable and secure.
This is when over 60s savings accounts can look attractive. Over 60s savings accounts can be geared towards those who are looking for stable rates, solid monthly interest and a simple setup that doesn’t take a lot of time management.
In this article, we take a quick look at all you need to know when it comes to savings accounts for the over 60s.
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What are the benefits of over 60s savings accounts?
Seeking out the best savings accounts is a good idea at any age. For savers who are nudging closer to retirement age, there may be other avenues you need to consider when selecting the right type of account. You may be tempted by a savings account specifically geared towards the over 60s and here are some reasons why:
Higher interest rates – Some savings accounts for the over 60s may have higher interest rates.
Monthly interest – Some savings accounts for the over 60s may also have the option of paying interest on a monthly basis rather than once a year. This can be beneficial for budgeting and financial planning.
Stable rates – Savings accounts can shift up or down when it comes to rates, which can be good (or not so good) depending on the market. If you want to play it safe, some over 60s savings accounts do come with a more stable base so you have a clearer idea when it comes to your money.
Different types of accounts for the over 60s
While some savings accounts for the over 60s can be a solid choice if you’re looking to keep your stash safe and steadily growing, it’s important to note that the same rules should apply when opening any kind of savings account.
What you really want to see from your savings account is a competitive interest rate and one that is well-matched to help you to save in a way that suits your needs. You may find this in your over 60s savings account or you may find it in another type of savings account.
Here are some of the best savings accounts on offer if you’re over the age of 60.
Easy access savings accounts
Easy access accounts could be a good choice for over 60s savers if you want a no-fuss flexible option. With easy access savings accounts, you can place money in and take it out without any restrictions. This level of easy management has minimum drawbacks and could be a perfect match if you want the security of easy access to your money.
Notice accounts are another valuable option for an over 60s savings account. While there are more rules with a notice account, they can help by encouraging you to take your savings seriously. Typically, notice accounts offer higher interest rates than an easy access account. While they may have more competitive rates, you may have to give notice if you want to withdraw your money. Notice periods and small prints will vary but can be between 30-180 days depending on the type of account you sign up for.
Fixed rate bonds
Fixed rate bonds may be a good option if you’re in a position to put your money away for a fixed amount of time. While you won’t be able to access your money early (unless you pay a penalty), you may enjoy the most competitive interest rates this way. For the over 60s who want a savings account that locks in an interest rate without the highs and lows of market changes, a fixed rate bond can be the best solution for security. Fixed rate bond terms can vary from between six months to five years, meaning you can pick the timescale that suits your financial plans.
Are over 60s savings accounts worth it?
Over 60s savings accounts could be worth it if they offer good rates and a flexibility that suits you. Yet, some banks use the over 60s title to tempt savers in. A closer look may show that the account doesn’t offer any additional benefits when compared to other kinds of savings accounts. It’s always important to read the small print.
Pros and cons of savings accounts for over 60s
Each type of account for the over 60s saver comes with their own pros and cons. Choosing the right savings account depends on your personal saving goals and what you want from your account. For some savers, having a fixed rate and a barrier to temptation is a great way to save. Other savers may want more flexibility and the security of knowing they can access their money whenever they need it.
Here are a few pros and cons of the different savings accounts for the over 60s.
|Easy access savings accounts||
|Fixed rate bonds||
How to choose the best savings account for over 60s
Choosing the best savings accounts for the over 60s shouldn’t be solely swayed by marketing tactics or even interest rates. Even though an account could offer an attractive rate, it may not have the terms and conditions to suit your saving style. Comparing the market is a great first step to place those interest rates side by side before delving into the details.
Here are some areas you might want to consider when choosing your over 60s savings account:
Interest rates – Everyone wants the best interest rate they can find. This is how you make your money work for you. With Raisin, you can compare savings accounts so you can see the numbers in black and white. Raisin can connect you with banks that offer the best interest rates. Whether you are looking for easy access, notice, or fixed term – let Raisin do the leg work for you.
Flexibility – Some over 60s savers don’t like the idea of locking their money up for long periods of time. This is where you also need to look towards flexibility and the fine print. You want to know what policies and penalties are in place with every account you choose. Will you get fined for early withdrawal? How much notice period is needed? Knowing the ins and outs of your choices can help you to make the right choice for your personal circumstance.
Protection – We all want to know that our money is safe and protected. When shopping around for your savings account, always check that it has FSCS protection. FSCS protection ensures that your money is guaranteed to the value of £85,000 per person, per banking group.
Over 60s savings accounts can offer some great options for savers seeking flexibility and solid rates. But specifically targeted savings accounts for certain age groups may not offer the most competitive deal and can be a smoke and mirrors act. Exploring the market with your eyes wide open and be aware that not locking yourself into a certain demographic with savings could pay off.
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