Over 50s savings accounts may be banned

The accounts do not conform to the Equality Bill, which has a second House of Commons reading next week. The Bill extends the ban on age discrimination to the provision of services, and could mean that banks and building societies are not allowed to give some savers preferential treatment over others.

The Building Societies Association has urged the Government to take action to keep the product which is so beneficial to many members. The BSA says it would be the worst possible time to introduce the ban, when pensioners have seen their incomes from savings virtually wiped out in recent months.

Adrian Coles, director-general of the BSA, said: 'It concerns us that this legislation could result in the loss of an account that meets the important social need of older savers. Whilst we support efforts to outlaw unjustifiable age discrimination, we believe these accounts - like children's accounts - have a legitimate role to play.

As building societies could not afford to offer the same rates to all members, they would be forced to cut the rates on over 50s saving accounts.

The BSA argues that he FSA’s ‘Treating Customers Fairly’ rules call for products and services to meet the needs of different consumer groups, such as the over 50s.

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