Over-50s savings accounts 'poorer'
Published on 18 April 2012 12:30 PM
Consumers have been warned that savings accounts targeted at the over-50s generally give poorer returns than those accessible to all.
A study by online savings provider Governor Money looked at the 20 best products aimed at those aged over 50 and compared them with the top 20 overall.
It found the whole-of-market average was 3.17% AER while the over-50s savings products only offered 2.23% on average.
For a saver investing £5,000 in an over-50s account, the annual interest before tax would be £111.50. That compares with a figure of £158.50 for those using one of the 20 general accounts.
The West Bromwich Building Society was singled out in the report for paying only 0.05% before tax on its Oak Account which is for those aged 60 and over.
The chief executive of Governor Money, Miles Bingham, urged people nearing retirement to look at the whole market before deciding on a savings account, rather than restricting their search to a product apparently tailored for a particular age group.
Copyright Press Association 2012