Discover the best over 60s savings account for you

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When you’re over 60 and approaching retirement, you might start to look at your financial situation in a new light. With fewer payslips ahead and more plans to relax and enjoy yourself, 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, saving you time and effort. 

In this article, we take a quick look at all you need to know when it comes to choosing the best savings accounts for over 60s.

Key takeaways
  • Savings goals: When deciding on the best over 60s savings account for you, you might consider factors like interest rates, flexibility, and account protection

  • Consider your options: There are various account options available to over 60s, including easy access, notice accounts, and fixed rate bonds

  • Keep informed: The marketing of age-specific accounts can be misleading, so it can help to compare all accounts to find a good match for your financial objectives

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 worth considering 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 – While current accounts and traditional bank options are popular, they may not offer the best savings rates for over 60s. Some specialised savings accounts for the over 60s may have higher interest rates, ensuring your money works harder for you.

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 feature variable rates that can shift up or down, 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 more stable rates, 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 for a safe place to store your cash and keep it 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 an 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, also known as instant access savings 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 minimal drawbacks and could be a perfect match if you want the security of easy access to your money. 

You might find that the best instant access savings accounts for over 60s are not actually designed for older savers. So, it can be a good idea to compare rates across the entire market to make sure you’re getting the best return on your savings.

Notice accounts

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. 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 provide a secure solution. Term lengths for fixed rate bonds can vary, ranging from six months to 1 year, all the way up to five years, meaning you can pick the timescale that suits your financial plans.

As with other account types, the best fixed rate bonds for over 60s may not be designed specifically for the over 60s. That’s why it can be useful to compare all fixed rate bonds to make sure you’re getting the most from your money.

Individual savings accounts (ISAs)

Cash ISAs can be an attractive savings option for the over 60s, as you won’t pay tax on any interest earned in the account. You have a limit of £20,000 per tax year to stash away in an ISA, which could be restrictive if you want to save a larger lump sum. 

While instant access cash ISAs offer easy and unlimited withdrawals, other options like stocks and shares ISAs may suit longer-term goals. If your top priority is to find the best ISA rates for over 60s, you might notice that cash ISAs offer lower interest rates compared to other savings accounts, especially in times of low interest rates.

Regular savings accounts

Regular savings accounts might suit you if you prefer a structured approach to saving, and don’t mind putting aside a fixed amount of money each month. These accounts can offer attractive rates, but typically come with restrictions such as a maximum number of withdrawals or a minimum monthly deposit. 

It’s important to note that some account providers may require you to hold a current account with them to access the top rates. This is particularly worth bearing in mind if you’re looking for the best regular savings accounts for over 60s.

Are over 60s savings accounts worth it?

Over 60s savings accounts could be worth it if they offer good rates and a level of 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 before making a decision.

Pros and cons of savings accounts for over 60s

Each type of account for the over 60s saver comes with its own pros and cons. Choosing the best over 60s savings account for you depends on your personal savings 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. 

Most people over 60 will be looking to weigh up potential benefits like higher interest rates against drawbacks such as withdrawal restrictions or fees. When considering these pros and cons, it can be useful to compare the features of over 60s accounts with standard savings accounts that are available to savers of all ages.

Here are a few pros and cons of the different savings accounts for the over 60s.


How to choose the best savings account for over 60s

When choosing the best savings accounts for the over 60s, you 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 could be a practical 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 UK, you can easily compare savings accounts by AER so you can see the numbers in black and white. Raisin UK can connect you with banks that offer the best savings interest rates for over 60s. Whether you are looking for easy access, notice, or fixed term – let Raisin UK 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 why you also need to look at the flexibility and fine print of each account. 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 options can help you to make the right choice for your personal circumstances. 

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 a variety of 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 not limiting yourself to a certain demographic with savings could pay off.