'Silver saver' accounts falling short on rates

27/08/2009

Savings accounts aimed at the over-50s are "falling short" on interest rates compared to the wider market, a new report has claimed.

Research conducted by moneysupermarket.com found that the top-performing easy access savings account aimed at this group offers an annual interest rate of 2.3 per cent.

While this is "reasonably competitive" given the record low base rate, it falls short of the rates that come with standard easy access accounts, the site added.

"Silver savers" have also been hit by bigger drops in interest rates compared to other customers, with the best rate on an over-50s account falling by 4.15 per cent in a year, while standard rates have declined by 3.25 per cent.

Kevin Mountford, head of banking at moneysupermarket.com, said: "Savers should always shop around and avoid being seduced by targeted products that may not offer the best rates."

According to Birmingham Midshires, the average Brit has savings of £2,813.

Tags; Debt Management and Banking, Retirement Money Problems,

Regional Debt Advice; Debt Advice Birmingham,

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