Save for the unexpected with Rainy Day Saver

Save for the unexpected with Rainy Day Saver
- 5% gross interest (5.12% AER) on balances up to £5,000
- Withdraw and deposit when you like
- Exclusive to Blue Rewards members
Seeking out the best savings account is important no matter what your age. But if you’re over 60, you might be thinking about your retirement, which means it’s even more important to ensure you’re building a decent savings pot for your future.
This guide explores the different savings options available for those over 60.
This will depend on your savings goals and whether you’re looking for a stable interest rate.
If you want an account that gives you the flexibility to access your money when required, an easy-access savings account could be the way to go. This type of account lets you pay in money when you want to as well as withdraw it. The downside is that interest rates aren’t always competitive, but they are variable which could work to your advantage when the base rate is on the up.
Alternatively, you could choose a notice account. This still gives you access to your savings, but you will need to give notice if you need to withdraw your cash. Typically, you will need to give anywhere between 30 and 180 days’ notice depending on the account. Interest rates are usually higher than they are for easy-access accounts.
If you have a lump sum to invest and you’re happy to lock it away for a period of between 6 months and 5 years, a fixed-rate bond might be more suitable. Because you’re required to leave your money tied up for a set term, interest rates are more competitive. Just be aware that interest rates are fixed, so if external interest rates rise, you won’t see any benefit. Also note that once you’ve paid in your lump sum, you can’t usually add further money.
For those preferring to put a sum of money away each month, a regular savings account could be worth considering. Here, you save a set amount each month for a year, and after that, you’ll be able to access your cash.
Finally, another option is a tax-efficient cash ISA. You can choose between easy-access cash ISAs and fixed-rate cash ISAs, depending on what suits your financial plans. You can also invest money into a stocks and shares ISA if you prefer – however, this will only be suitable if you’re planning to invest for at least 5 years, preferably more, and it’s sensible to seek financial advice first. Although stocks and shares ISAs have the potential to offer higher returns, they are also riskier and you could end up getting back less than you originally invested.
For the 2022/23 tax year, you can invest up to £20,000 into an ISA – this can be invested in either a cash ISA or a stocks and shares ISA, or split between them.
That depends. Over 60s savings accounts could be a good option if they pay a high rate of interest and offer the right kind of flexibility. However, it’s crucial to look at exactly what an over 60s account offers compared to a standard savings account that can be opened no matter what your age.
Don’t assume that if an account specifically states it’s for the over 60s that it’s the best option for you. Make sure that it is a truly competitive deal compared to the wider market before signing up to anything.
To find the best savings account, compare the whole market carefully. Consider which account offers the best interest rate and which is most suited to your needs. The following points can help you with your decision:
Whatever your age, it’s important to consider what you want from your savings account before deciding. Ask yourself if you’re happy to tie up your funds and for how long? How do you want to manage your account and how much of a deposit have you got saved up?
As the Bank of England base rate continues to rise, savings rates are gradually becoming more competitive, so the key is to shop around and look for the best deal. Don’t feel you have to pick a savings account that’s advertised as being for over 60s – make sure you do your research fully first.
You’ll find customer satisfaction star ratings on some of our savings accounts. Here’s how we came up with them.
Learn more about opening a savings account with our guide.
Learn more about how flexible ISAs work.
Find out more about the pros and cons of 2-year fixed rate cash ISAs
Find out more about how regular savings ISAs work.
Learn more about the pros and cons of 1-year fixed rate cash ISAs
A no access saving savings account can keep your money locked away and give you guaranteed savings growth.
Discover more about 18-month fixed-rate bonds.
Discover more about how monthly interest fixed-rate bonds work.