The Best Savers Rates for Over 50s: Top 3 Options

With the ongoing political turmoil of the past two years showing no signs of a clear-cut resolution any time soon, it has been a worrying few years for savers in the UK.

With interest rates remaining at a historic low of 0.25%, it’s not been a great time for those putting money away for a rainy day. Nevertheless, 12.7 million Brits put money into cash ISA accounts in 2015 and the format looks set to stay as the country’s favourite way of saving.

With a huge myriad of options available on the market, from fixed rate to easy-access and more, things can quickly get confusing. Especially when you factor in the special deals for savers over the age of 50 – who represent over 50% of the household wealth in the UK.

So, considering the size of the market, the banks are keen to attract customers in the 50+ age group and offer a range of services.

Want the Best Savings Rate?

View the Top 10 Rates Now

Here are three of the best options for those over 50 years of age, covering a different range of saving accounts and investments.

  1. Paragon Bank, 5-year investment bonds

    This is the most secure, well-known challenger bank which pays the biggest savers rate on the market, in terms of an investment bond.

    Paragon now pays the highest rate of 2.50% for a five-year bond – well above your average cash ISA.

    Paragon also has a relatively low minimum investment of £1000, up to a maximum of £100,000.

    The bank is FSCS (Financial Services Compensation Scheme) secured up to the first £85,000 saved.

    Paragon does allow early access or withdrawals, at the cost of 365 days interest. Yorkshire Bank and Clydesdale charge a sliding scale of interest deductions for early access, depending on the time until maturity.

  2. SAGA 1 year fixed ISA

    The SAGA 1 year ISA pays a reasonable rate (0.75%) for a 1-year cash ISA that allows withdrawals – and it’s only available to the over 50s!

    SAGA accounts come with free membership to their magazine and club service; offering a range of benefits that include exclusive discounts on a range of products and services, from holidays to consumer goods.

    Due to the rate below inflation, the account may only be worth a look if the benefits are important to you.

  3. Fixed Rate Investment Bonds for the Over 50s

    Although risky in some cases, and with a long wait until profit comes through, non-high street investment banks offer the greatest rates in order to compensate for this risk – and they can pay off big time.

    With rates up to 12% AER in some cases, if you’ve got the spare cash, and you don’t mind a bit of risk in your old age, then these fixed rate investment bonds might be for you.

    Several companies provide this kind of fixed-income product, which have higher rates but carry additional risks.

    When compared to commercial banks like Paragon from point one, these bonds offer a more speculative, diversified investment that could see your money put into a huge range of businesses and industries.

    However, they also require much higher minimum investment, usually around £5,000 since they generally have a smaller investment base.

    So just make sure you do your research carefully and find the best bond for your needs!

Compare Fixed-Rate Bonds for the Over 50s

View the Top 10 Providers Now

Charlie Howells

After finishing his business studies degree at Bath, Charlie has been involved with a number of startups and finance companies. He regularly writes about personal finance and works as an analyst and writer for Best Savings Rate.