Financial options for mature adults: Exploring various account types and their effectiveness
Saga and NatWest Boxed Partner to Launch Savings Accounts for Over-50s
Saga, a UK-based provider of products and services for older people, is set to launch a new easy-access savings account in partnership with NatWest Group's banking-as-a-service unit, NatWest Boxed. This marks the first product under a seven-year partnership aimed at delivering innovative savings accounts tailored to the needs of individuals aged 50 and over.
The new savings account, expected to launch later in 2025, is designed to offer flexible savings options for its customers. However, the specific interest rates for the account have not been disclosed publicly. Beyond this initial product, Saga and NatWest Boxed plan to introduce a broader suite of savings products as part of their partnership, all catering to the over-50 demographic.
Currently, Saga offers a variety of products such as cruises, holidays, equity release, insurance for older people, and a cash ISA. However, the new easy-access savings account will replace Saga's existing instant-access savings product. There will be no change for existing customers who already hold a Saga instant-access savings product.
In the savings market, there are only a few age-restricted savings accounts available for those aged 50 and over. Today, these accounts are provided by Chorley Building Society, Earl Shilton BS, and Newbury BS, with minimum ages of 50, 55, and 60 respectively. The interest rates on offer for these accounts aren't particularly competitive, with Earl Shilton offering the highest rate but limiting withdrawals.
For instance, Earl Shilton BS's Heritage Account offers a 3.5% interest rate yearly, but allows only up to four withdrawals per year. On the other hand, Newbury BS's Senior Saver offers a 3.2% interest rate monthly. Chorley Building Society's Over 60's Account Issue 3 offers a 2.1% interest rate yearly. However, none of these accounts keep pace with inflation, which is currently running at 3.6%.
The partnership with NatWest Boxed is expected to bring more competitive and innovative savings accounts for older people. The first product to launch will be an easy-access account, which could be available as early as October. As the partnership progresses, Saga and NatWest Boxed aim to deliver easy-to-use products and services, as well as accessible and reliable customer service, to meet the distinct needs and preferences of their over-50 customers.
Customers aged 50 and over can anticipate a new easy-access savings account, offering flexible options, from Saga in partnership with NatWest Boxed. This collaboration in personal-finance aims to introduce competitive interest rates on savings products, improving upon existing options in the market that often fall short of keeping pace with inflation.
