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Bank Accounts Latest News Research: Older people being forced into using savings accounts
Bank Accounts Latest News Research: Older people being forced into using savings accounts Research: Older people being forced into using savings accounts
Many over-55s are having to dip into their savings, research has shown.
Many older people in the UK are being forced to make use of savings accounts such as ISAs in order to pay for unexpected expenses, new research has revealed.According to Aviva's quarterly Real Retirement Report study - which was published today (September 8th) - around 25 per cent of those over the age of 55 in Britain cannot meet the cost of unexpected expenses using their current account so therefore have to dip into savings that were intended for their retirement.
Nearly all - 92 per cent - of people in this age bracket have experienced such costs in the last five years, meaning that funds for later in life may be dwindling among the British population.
Clive Bolton of Aviva commented that the financier's figures show that "one in five over 55 households is struggling to get by on almost a third of the national average income".
In related news, John Prout, sales director at National Savings & Investments, said recently that taking advantage of the increased ISA allowance can lead to consumers earning a "substantial sum" in tax-free cash.
By Emma North
Wednesday, 08 September 2010 00:00
Comments (2)
The comments listed below are opinions held by the individuals posting and are not endorsed by, or representative of opinions held by which4u.co.uk. We cannot be held responsible or liable for the accuracy or content of any comments submitted. We reserve the right to publish, remove or edit comments as we see fit.
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Le_blur 2010-09-10 15:22:08If I invested the maximum allowed in a cash ISA, and using the NS&I ISA rate of 2.50%, I would recieve just over £10.62 a month. Is this the "substantial sum" in tax-free cash John Prout was refering to? All my troubles are over!!
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Admin 2010-09-10 15:29:30These products are designed for those that don't wish to take any risks, providing them with a guaranteed return.
If you were looking to make more substantial gains you may wish to consider stocks and shares Isas, which offer the potential to earn greater returns PLUS you can use your full Isa allowance of £10,200 to invest while paying no income tax on the returns.
Some of these deals offer predicted returns that fall far higher than any cash Isas, so can prove to be a more profitable choice for those that are willing to take on a level of risk.
Top 5 Savings Accounts
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Interest Paid |
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2.90%
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Instant
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Monthly
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£1
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2.80%
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Instant
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Annually
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£1
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2.50%
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Instant
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Monthly
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£1
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2.50%
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Instant
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Annually
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£1
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2.50%
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£1,000
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ING Direct Savings Account
- New customers can enjoy a rate of 2.90% AER (2.86% gross p.a.) including a 2.36% gross bonus fixed for 12 months from account opening.
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Halifax Online Saver
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- Available from age 16 onwards
- Access your money by transferring to another account online
- Interest paid annually
- YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme
Barnsley Building Society Online Saver
- Great on-going rate of 2.50% gross pa/AER† variable with NO bonus period!
- Apply online with Barnsley Building Society award-winning, paperless application. No forms to sign.
- Open an Online Saver with as little as £1
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Halifax Reward Saver
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- Further withdrawals available should you need them however these will suffer 30 days loss of interest on the amount you withdraw.
- Access your money by transferring to another account online
- Interest paid annually
- You need to be a UK resident personal customers aged 11+
- YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme
Nationwide Regular Savings
- A competitive rate of interest of up to 2.50% AER, (2.50% gross p.a.)
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- YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme
Natwest e-Savings
- No penalties – we don't charge you for withdrawing your money
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- No need for an existing NatWest account – although if you have one, it's quick and easy to move money between e-Savings and your other NatWest accounts
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- Set up and track your own personal savings goals - through Online Banking
- YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme
RBS Direct Saver
- you will earn the following rate of interest: 1% AER/Gross (variable)
- Instant access to your funds with no penalties
- Monthly tax-free interest – RBS can pay the interest into your Direct Saver or another RBS account.
- Manage your ISA by Phone, post, in branch and online
- YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme
Halifax 2 Year Fixed Rate Online Saver
- Account gives you a great rate of 3.75% AER
- You can open an account with just £500.
- The maximum balance is £9,000,000.
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- On maturity you'll still get a good rate as your savings and interest are transferred into the Variable Rate Web Saver (which is opened at the same time as your Fixed Rate account).
- YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme
Scottish Widows Direct Transfer Account
- Rate includes a bonus of 0.89% for 12 months
- Minimum balance £1000
- Deposits can be made by internet banking, telephone or post
- No notice period or penalties for withdrawals
- YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme
ING Direct Cash ISA
- Act now and you can enjoy a great tax free rate of 3.0% AER variable (2.96% gross p.a variable, including a 1.96% gross p.a bonus fixed for 12 months from opening)
- This rate then reverts to a variable Cash ISA rate currently 1.00% gross/AER.
- The interest is calculated daily and paid monthly.
- You can invest from £1 up to £5,340 each tax year and benefit from tax free savings.
- You can NOT transfer your existing ISA balances to this ISA
- The tax year runs from 6 April to 5 April the following year.
- You can invest in one lump sum or in any number of smaller payments up to the annual subscription limit (£5,340).
Natwest e-ISA
- Save from £1 and save up to £5,340 per tax year
- If you wish to transfer your existing ISAs balances to this ISA you will earn the following rate of interest:
- £0 - £9,999 = 2.00% AER
- £10,000 - £29,900 = 2.25% AER
- £30,000+ = 2.50% AER
- Instant access to your funds with no penalties
- Monthly tax-free interest – Natwest can pay the interest into your Cash ISA Plus or another NatWest account.
- Manage your ISA by Phone, post, in branch and online
- YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme
Halifax ISA Saver Online
- 2.60% tax free/AER variable including 12 month fixed bonus of 2.35%
- Interest paid tax free
- Open from just £1 and save in a way that suits you
- Easy access to your savings
- Transfers in benefit from our ISA Promise
- Maximum savings £5,340 annually (tax year 2011/2012)
- Available from age 16 onwards
- YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme
