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.
Is my money safe?
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.
Compare instant access savings accounts for the over 50s
Table: sorted by interest rate, promoted deals first
What are instant access savings accounts for the over 50s?
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.
Are instant access savings accounts for the over 50s worth it?
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.
How to choose the best instant access savings account for the over 50s
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:
Account management. Although you technically have instant access to your money, how easy is it to open and manage the account? Check whether it can be done online, or if you have to visit a branch or do it by telephone banking.
Interest rate. This is the most important feature of a savings account if you’re hoping that the money you’ve set aside will also generate a return. Although bear in mind that instant access savings accounts tend to offer lower interest rates than more “conditions-attached” savings accounts, such as fixed term or notice accounts.
Bonuses. Some accounts have introductory offers included in their interest rates. So even though you have instant access to your savings, be mindful about how long you’ll you need to keep a certain amount of money in the account in order to qualify for any available bonus.
Minimum balance. The minimum balance required to open an instant access savings account is usually pretty low (as little as 1, compared to around £500 for a fixed term account). But this minimum amount could increase if there’s a higher interest rate on offer. Make sure you have the money available to deposit and to maintain a certain balance, if that’s a condition of a higher interest rate or bonus.
FSCS protection. Does your savings account provider offer security for your money? Only financial institutions with a UK banking licence offer protection up to the value of £85,000 under the Financial Services Compensation Scheme. (Although other financial providers will have safeguards in place in order to be allowed to operate in the UK, just not the FSCS specifically.)
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. ”
Which are the best easy access savings accounts for the over 50s at the moment?
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.
Leeds BS – Shared Ownership Saver - 6.25%
Santander – Santander Edge Saver (Issue 2) - 6%
Trading 212 – Cash ISA - 5.13%
Moneybox – Moneybox Cash ISA - 5.12%
Barclays Bank – Rainy Day Saver - 5.12%
Pros and cons of instant access savings accounts for the over 50s
Pros
Easy access to your funds if you need to withdraw them
No penalties for withdrawals and no fixed term saving period
Can be opened with a low minimum deposit, sometimes with as little as £1
Higher interest rates than current accounts
You might get a time-limited introductory bonus on top of the interest rate
Cons
Lower interest rates than other savings options, such as fixed term accounts
The interest rate might move up and down
Tax payable on any interest income that exceeds your personal savings allowance (which is £1 for basic-rate taxpayers and £500 for higher-rate taxpayers)
If there’s an introductory bonus, it will be time-limited so the account could become less competitive once that deal ends
An overview of our instant access savings accounts comparison
Rates up to
6.25% AER
Number of accounts
548
Number of brands
110
Minimum investment
£0
Maximum investment
£10,000,000
Opening options
Branch, website, mobile app, post, telephone
Bottom line
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.
Frequently asked questions
No. Over 50s can open the same instant access accounts as other savers in the wider market.
The interest rates offered with instant access savings accounts are likely to offer be variable. In exchange for the flexibility you get with accessing your money, the account provider also has the flexibility to increase or decrease the interest rate. Some banks and building societies offer an attractive interest rate that is fixed for a particular period, usually for around 12 months. It will then usually reduce the interest rate, which can then rise or fall along with other variable interest savings accounts on the market.
Depending on your income, you have a tax-free allowance on interest. It’s called “personal savings allowance” (PSA). It’s £1,000 a year for basic 20% rate taxpayers and £500 a year for higher 40% rate taxpayers. Top 45% rate taxpayers don’t have one, so they have to pay taxes on all the interest they earn. Cash ISAs don’t count towards the allowance.
As many as you like.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
Michelle Stevens is a deputy editor at Finder, specialising in banking, credit, loans and mortgages. She has a journalism degree from the University of Sheffield and has been a journalist for 15 years, writing on topics including fintech, payment systems and retail. In her spare time, Michelle likes to travel, explore new foodie experiences and attempt to improve her own culinary skills. See full bio
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Michelle has written 128 Finder guides across topics including:
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