Clued up over 50s keep a check on savings ratesTuesday 8 July 2014
• Two thirds of over 50s check rates at least every six months • Six in ten over 50s switch savings accounts to get the best interest • Men are more likely than women to check interest rates regularly • Saga’s new 1 Year Fixed Rate ISA pays 1.55% tax free/AER ** interest.
Clued up over 50s keep a check on savings rates
Many over 50s rely on savings to boost their monthly income and research by Saga Savings shows that they have now made checking their savings rates part of their regular financial wealth check.*
The research shows that two thirds check their rates at least every six months and just over a quarter check once a year. One in 12 over 50s say they have never checked the interest rate on their savings accounts.
These savvy savers are also prepared to take action if their money is not working as hard as it could for them, two thirds of over 50s say they switch accounts to get the best rates.
Men over 50 run a tighter ship than women the same age when it comes to making sure their money is working as hard as possible. Just over a third of men (35%) say they check interest rates every month whereas women are content checking interest rates annually (12%). However, men and women are equally likely to jump ship if another account is offering a better interest rate (men 62%, women 60%).
Saga has launched a new 1 year fixed rate ISA, paying 1.55% taxfree/AER**, customers can choose to have the interest paid monthly or annually. The minimum deposit is £1 up to the current years ISA limits in addition to transfers in from previous tax years. Withdrawals allowed by post subject to a charge***.
The account can be opened over the telephone or online. Saga notifies customers when their term is coming to an end to prompt people to ensure that their money continues to work as hard for them as possible.
Andrew Strong, chief executive, Saga Personal Finance commented: “Time goes so quickly that it’s easy to forget about the money that is stashed away for a rainy day – whether you want to or not. So it could be worth taking the time to make a note of when you can free up your money. Higher cash ISA limits are something which we have campaigned for on behalf of our customers, therefore we are delighted to be able to offer them an attractive rate to help them make the most of the change.
“We understand that our customers need their money to work as hard for them as possible, we always contact them before their fixed rate ends to remind them that they need to move their money and we offer existing customers at least the same rates as new customers.”
The poll also showed that under a third (29%) of over 50s describe themselves as regular savers using direct debit to contribute to savings every month. 37% say they save on an ad hoc basis whenever they have something to spare and just under a fifth (18%) say they try to save each month, but this doesn’t always happen.
Notes to Editors
*Populus interviewed 9,725 adults, all aged 50 and over, online between 13th and 24nd February 2014. Populus is a member of the British Polling Council and abides by its rules.
**AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.
***The charge for withdrawing funds before maturity of the account is equivalent to 90 days interest. The charge will be taken from the account balance, and depending upon when the withdrawal is made may result in getting back less than originally deposited.
Tax treatment depends on individual circumstances and may change.
About Saga Savings
Saga offers savings accounts to suit a variety of needs, including fixed rate savings and ISA accounts:
- All accounts offer the option to have interest paid monthly or annually
- Saga Savings accounts are available to UK residents over 50
- All Saga Savings accounts are provided by Birmingham Midshires, a division of Bank of Scotland which is authorised for accepting deposits by the Financial Services Authority.
For further information regarding Saga Savings accounts, please visit www.saga.co.uk/money or call 0800 111 4935
The deposit-taker for Saga Savings Accounts is Birmingham Midshires, a division of Bank of Scotland plc, which is authorised for accepting deposits by the Financial Services Authority. It is entered on the FSA Register and its number is 169628. Registered office: The Mound, Edinburgh, EH1 1YZ (Registered in Scotland No. SC327000).
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