Best Savings Rates for the Over 60s

Over 60s savings accounts are specifically designated financial products such as instant access accounts, notice accounts and cash ISAs, which can only be bought by people in that age group.

There’s several options available to older savers, and it depends what they wish from the money.

If you want to just hold it safely as easily accessible cash, then they may not get the best rate, with not many accounts being close to inflation at present.

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What are the best savings rates for over 60s?

Cash ISAs could be a simple option for over 60s who wish to take advantage of the favourable rates provided to them, which in some cases have offered rates 0.5% higher than those accounts open to all age groups.

In this climate of low interest rates, the best cash ISAs available are fixed rate, and a maximum of £20,000 a year can currently be invested in an ISA in total.

If you have more than that, then it is worth considering fixed-Rate bonds, as these usually have higher allowances, but have different tax implications.

To understand your tax implications, then read our guide to Personal Savings Allowance (PSA).

The best interest rates available are from fixed rate bonds and innovative peer to peer products. These do carry a higher risk, but the rates are much higher than savings accounts and cash ISAs at the present time.

  • Quidcycle 3 Year Investment
    5.2% – Peer to Peer Lending
    Not covered by FSCS
    For seasoned investors only.
  • Highest Rates on Fixed Term Bonds Covered by FSCS

    The highest rates covered by FSCS are usually from relatively unknown challenger banks – these do not have the history of high street banks but are often more innovative with their products.

    But then many banks lost a lot of their credibility after the financial crisis, and the government protects your money in these accounts up to £85,000.

    • Castle Trust 5 Year Bond
      3.50% – Corporate Fortress Bond
      Covered by Investment FSCS up to £50,000
      Minimum £1,000, maximum £250,000
    • Atom Bank 5 Year Fixed Saver
      2.30%  – Fixed Rate Saver
      Covered by FSCS
      Can pay interest monthly or yearly
      Manage and apply through a mobile app.
      Minimum £50
    • NS&I 3 Year Guaranteed Income Bond
      1.90% – Investment Guaranteed Growth Bond
      Covered by FSCS
      For those who want safe monthly income from a lump sum
      Minimum £500 – Maximum £1m
      Considered safest of all – lending to UK government itself.

    Compare more fixed-rate bonds.

    Best ISA Rates for over 60s

    The best accounts currently offered at the time of writing are the following:

    Notice Accounts for Over 60s

    The best place for over 60s to invest their money isn’t necessarily in ISAs. A case could be made to look into a ‘notice’ account.

    They could be considered somewhat as a mid-point in terms of access between a long-term fixed-rate accounts and an easy access savings account.

    Notice accounts offer over 60s flexibility in terms of when they withdraw their money – holders are required to give their provider advance notice, usually without penalty.

    Usually several withdrawals are available each year, but read each providers terms and conditions carefully to see which suits your needs.

    You will also receive the same amount of notice should the provider wish to change your interest rate.

    Here is the top pick for a notice savings account which could be of interest to over 60s:

    The interest rates tend to be more stable for over 60s accounts, and some accounts also pay interest monthly, helping the holders with their budgeting by having access to their accrued funds.

    A large share of these accounts are simple and straightforward in their nature, with a minimum of small print.

    There are other options open to pensioners who are sophisticated investors in for the form of fixed-rate bonds, P2P and holdings in stocks and shares.

    These options carry a higher risk, and are outside of the UK Government’s FSCS protection, but can offer a better return than most savings accounts currently available.

    The new wave of internet banking options also make it easier for over 60s to manage their finances via the web if they are online. If not, there are also telephone banking options which are popular.

    Zachary Wyatt

    Zach lives on the coast in the UK, with one eye fixated on the City. Prior to his writing, he got his feet wet with forex trading platforms.