Six Of The Best Accounts For Silver Savers
With the over fifties now representing around a third of the UK population, there are more accounts for silver savers than ever before, but do they really offer anything special?
Around a third of the UK population (about 20 million) is aged fifty and over. So the over fifties market is growing along with its spending and, of course, its saving power.It isn't surprising then that the number of savings accounts which target this age group is rising fast. Now this sounds like a great idea, but do silver saver accounts really offer extra incentives where ordinary savings accounts can't? I've trawled through the terms and conditions of the top six accounts but there doesn't appear to be any exclusive features which put them ahead of the game. Silver saver accounts offer many of the same benefits as traditional accounts: higher introductory bonus rates, ongoing guarantees related to the base rate, instant access and so on. However, all the accounts shown do offer a monthly interest-rate option which can be particularly useful for income seekers. It would appear silver saver-branded accounts are more of a tactic to encourage loyalty without necessarily being superior products. But, that said, the best instant access and notice accounts do measure up well to the rest of the market and are at least worth considering when you need a home for your savings. I've taken a look at the savings accounts which are specifically branded for the over fifties and sixties. Here are the most competitive ones I can find for the silver savers among you. Top Six Savings Accounts For Silver SaversCompanyAccountGrossrate(% AER)NoticeMin ageMindepositIntroductory bonusCoventry BSSixty-PlusNotice(Issue 3)6.35%60 Day60£10K0.60% bonus for12 mthsNorthernRockSilverSavingsOnline6.30%None50£1NoneCoventry BSSixty-PluseSave6.29%None60£10.65% bonus until30.06.08SAGAOnlineSavings6.20%None50£10.45% bonus for12 mths, then0.25% for 12 mthsMarketHarborough BSOnthedotSixty+Surfer6.10%None60£1NoneStroud &Swindon BSPlatinum 50Save(Issue 2)6.06%30 Day50£5K0.35% bonus for12 mthsData provided by Moneyfacts. Rates shown are variable.As you can see from the table you won't be eligible for certain accounts until you reach sixty so watch out for this. If you prefer to run your account by phone or through a branch you may need to hunt a little further as most are internet-only. Of the top six, Coventry Building Society and Stroud & Swindon allow you to operate your account by traditional means, but they have higher minimum deposits and require notice before you can get your hands on your cash. The rates of interest certainly keep pace with the competition and it's possible to earn a better rate through a silver saver account than you would get from an equivalent standard account. In fact, a search through the range of easy access savings accounts in The Fool's savings centre reveals that half of the top six accounts are marketed for silver savers, so there are definitely good deals out there to be had. Interestingly, if you can afford to lock away some of your savings, the same can't be said of fixed-rate bonds where the silver savers just don't fare as well. The best silver saver offering is Saga's one year Fixed Rate Savings Bond which pays 6.60% (AER). But this can't compete with traditional accounts such as Abbey's one year Super Bond which has an attractive interest rate of 8.10% (AER). If you're looking for a fixed-rate bond it's probably better to head down the standard savings account route.Other products which are specifically aimed at the silver generation include Pensioners Guaranteed Income Bonds from National Savings & Investments (NS&I). These are for savers who don't need access to their money and are after the security of a guaranteed fixed monthly return. But you'll only earn interest at a rate between 5.33% and 5.43% (AER) depending on whether you choose a one, two or five-year bond which doesn't compare well with ordinary fixed-rate bonds.However, on a more positive note, NS&I pensioners bonds are particularly suitable for non-taxpayers. The interest is taxable but it'll be paid to you with no tax deducted which means you won't have to complete an Inland Revenue form to receive your interest gross.The usual advice is to shop around to find the savings account which is most suitable for you and the same is true here. If you're part of the silver generation, by all means take a look at what silver savers have to offer, but don't ignore the wider market. More: The Perfect Savings Account| When Saving Gets Sexy