Best instant access savings accounts for over 50s
The best instant access savings accounts for over 50s may not necessarily be designed for older savers. Whilst over 50s instant access savings accounts do exist, interest rates are not always that competitive. Therefore, to get the best over 50s deal, compare instant access savings rates across the whole market.
The following information explains the benefit of this type of flexible savings account, what to look out for and how to choose the best easy access account for you.
What are instant access savings accounts?
Instant and easy access savings accounts are flexible accounts that pay interest on savings. Interest rates are typically higher on savings accounts compared to current accounts and you can still access your money whenever you want. However, the purpose of these accounts is saving money, not managing daily financial affairs.
Whilst instant access savings accounts typically give you immediate access to your money, some easy access savings require you to move funds into a current account first. This can mean that with some easy access accounts, you must also have a current account with your chosen bank or building society too.
In addition, some easy access savings only allow you to make a certain number of withdrawals a year however any restrictions of this nature will be highlighted in the terms and conditions.
Easy access and instant savings account are simple to open and usually require a minimal deposit of between £1 and £100. The interest you earn is typically higher compared to current accounts but not as high as savings accounts where your money is tied up for several years.
What are the best instant access savings rates?
Instant access savings rates are usually variable. This means the rate of interest on offer when you open the account will change over time.
However, if you regularly compare rates and see better deals, you can switch to an account that offers the best instant access savings rates at any time.
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What are bonus rate savings accounts?
Bonus rate savings accounts typically have fixed rates for period of time that include a bonus. At the end of the period, the bonus ends and the interest rate falls to the bank or buildings societies variable rate.
For example, if you have an account that offers 1.5% interest with a 1% bonus for 12 months, after the first year when the bonus ends, the interest rate would drop to 0.5%, or whatever the variable rate is at that time.
So, if you do take advantage of one of the bonus rate savings accounts, keep an eye on what happens once the bonus period ends. If the interest rate is poor, switch bank accounts.
What are the pros and cons of easy access savings?
The pros and cons of easy access savings accounts will help you decide if this is the right type of savings account for you:
The pros of easy access savings
- Pays interest on your savings
- Offers flexibility to easily deposit and withdraw money
- Simple and easy to open
- Minimal deposit required to open the account
The cons of easy access savings
- You may also need a current account to transfer funds to when making a withdrawal
- The number of withdrawals you make a year could be limited
- The interest rate is variable so could go down
- You may only be able to access the account online
Are instant and easy access savings accounts regulated?
Instant access and easy access savings accounts are regulated if you choose a bank or building society that is authorised by the Financial Conduct Authority. By only using FCA regulated firms, up to £85,000 of savings per person per institution is covered by the Financial Services Compensation Scheme.
How to find the best easy access savings account
To find the best easy access savings account it’s a good idea to compare interest rates, features and terms and conditions. You should also consider whether you prefer and account that gives you a higher interest rate with some limitations or a slightly lower AER with complete flexibility.
Also, as some easy access accounts are only available online, it’s important to think about how you prefer to access your account.
What is the best instant access savings accounts for over 60s and 70s?
To find the best instant access savings accounts for over 60s, 70s and older, compare accounts across the whole of the market. As with over 50s savings accounts, instant access savings accounts for over 60s may have attracted features but not the best interest rates. Therefore comparing is a must.
What should I do now?
When you are ready to compare instant access savings accounts, Savings Champion’s best easy access savings table is a great place to start.
Alternatively, if you require information on other types of saving accounts for the over 50s such as notice accounts, fixed rate bonds and ISAs, read our helpful guides.
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