| CashQuestions Guide to savings for older savers |
|
|
|
Many banks and building societies offer special
accounts to older savers. These fall into three groups: bonds, similar
to those on offer to other age groups, but often with a slightly higher
rate or available with monthly interest; those that offer a
passbook-based account – the sort that is often favoured by the elderly
– with a higher rate of interest than other passbook accounts offered
by the bank or building society; and deposit accounts operated via a
branch, by telephone or over the internet. These often require the
saver to deposit their pension into the account.
While it is good news that banks and building societies are prepared to help older savers, particularly those on a fixed income such as a pension, Silver Saver accounts do not always offer the best value. Research conducted recently by the financial data provider Moneyfacts found that almost all the accounts featured in its selection tables for No Notice and Internet accounts, with no age restrictions, paid higher rates than the new ‘pensioner specific’ accounts, even when introductory bonuses have expired. If you qualify for a particular account by virtue of your age it is worth checking rates on other accounts too to see if you can get a better deal.
Tag this article :     |
| Got a question? Ask our panel of financial experts » Click here | |||||||