Baby boomers are the silver savers

Monday, 22 September 2008

Research by Abbey has shown that 90% of cash deposits in Britain are held by the so-called “baby boomers”. This is the generation of over 50s who, having bought their homes many years ago, are still benefitting – despite the current crisis – from large increases in the values of their properties.

While the younger generation is fretting about how to borrow money, the over 50s are more concerned with their savings. In response to the perceived need, banks are setting up accounts for the over 50s, and they often have higher interest rates, and other services targeted at this age group.

Examples of rates are 6.26% from Heritage Bank for a minimum investment of £1,000; 6.35% from United Trust Bank with 50 days notice; 6.2% from Coventry BS for a minimum investment of £10,000; 6.45% from Kent Reliance on its Direct 65+ account – but you have to be over 65!

The most beneficial accounts are online accounts, so holders would need to be “silver surfers”, and many are happy to do so. Traditional accounts are also available, such as Coventry’s 60+ saver, paying 5.75% for a branch account.

However, don’t be blinded by “silver” accounts. Sometimes rates on online accounts for all ages groups can be higher.

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