Instant access savings accounts let you add and withdraw money whenever you want to, without facing any penalties. In this guide we look at instant access savings accounts for the over 50s to help you understand what they are, whether they’re worth it, and how to apply for one.
The Financial Services Compensation Scheme (FSCS) guarantees that it will step in to compensate the first £85,000 (£170,000 for a joint account) you have saved with a UK-authorised bank, building society or credit union in the event that the business goes bust.
Instant access savings accounts allow you to put money aside and earn interest on it while still having immediate access to the cash. This means you can add and withdraw funds at will, without being obligated to keep money in the account for a set period of time.
This sets them apart from fixed term savings accounts where you might have to pay a penalty to withdraw your money before it matures.
Instant access savings accounts typically have higher interest rates than those offered in current accounts, but lower rates than fixed-rate savings accounts.
As the name suggests, instant access savings accounts for the over 50s are available exclusively to banking customers aged from 50 upwards. There isn’t a wide range of providers who offer these products, but one example would be Saga.
The crucial point to consider here is the interest rate that comes with the savings account.
Instant access savings accounts for the over 50s may be an exclusive product designed for a particular age group, but that doesn’t mean they have the best interest rates out of the whole market.
Over 50s can still open the same instant access accounts as other savers in the wider market, so it’s important to explore your options before you decide which savings account to go for.
The key here is to research both instant access savings accounts that are available to the over 50s, and those that are available to savers in any age group. You can then compare them and select the one with the best interest rate or the overall offering that is most suited to your needs.
Here are some factors to think about when choosing your account:
Whatever your age, having a stash of savings in an easy-access account is always wise in case you get lumbered with an unexpected bill. ”
Our best easy access accounts are the highest interest rates available. To get the latest rates, we use Moneyfacts data, which covers nearly the full market of savings products and is checked and updated daily. We don’t include accounts from private banks.
All the savings accounts in our list have savings protection – for most, this is the Financial Services Compensation Scheme (FSCS). Other schemes include that of NS&I, which is 100% backed by HM Treasury, and the Gibraltar Deposit Guarantee Scheme.
| Rates up to | 6.15% AER |
|---|---|
| Number of accounts | 543 |
| Number of brands | 110 |
| Minimum investment | £0 |
| Maximum investment | £10,000,000 |
| Opening options | Branch, website, mobile app, post, telephone |
Whatever your age, an instant access savings account can be a great way to earn interest on your cash having the flexibility to get your hands on it if you need it. It’s always good to have some ready cash in an account in case you get an unexpected bill.
An instant access savings account specifically for the over 50s may be suitable for you if there are particular features or rewards that meet your needs. But otherwise, it’s worth bearing in mind that wider savings market will usually offer instant access accounts with a better interest rate.
Interest rates are much higher than they were a couple of years ago so now is a pretty good time to shop around for an instant access account. But as the rate isn’t fixed, you might find that it fluctuates over time in line with the wider market.
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