The Government’s new Equality Bill, set to have its Second Reading in the Commons on 11 May, could ban savings accounts aimed specifically at the over 50s age group, according to a warning from the Building Societies Association (BSA).
As interest rates on savings have plummeted for many older savers over the past year, the BSA called on the Government to ensure ‘silver saver’ accounts are exempted from the forthcoming legislation. Older savers in particular have been hit by the fall in interest rates as they frequently use savings interest to supplement other, often fixed, sources of income.
‘Silver saver accounts should be exempt from legislation’
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.
‘The Government themselves acknowledged in the recent Budget, by increasing the ISA limit for those over 50 ahead of the rest of the population, that older savers have suffered, so it would seem at odds with their policy to outlaw this product.
‘We would like assurance that the future of the silver saver account will not become uncertain and that this type of product be exempted from the legislation.’
Find the best savings account for you
The best over-50s savings accounts at the moment include the West Bromwich BS High Income Over-65s account and the Coventry BS Sixty Plus PostSave account, paying 2.84% and 2.75% respectively.
However, it’s always worth checking savings accounts available to everyone to make sure you’re getting the best deal. To find the best savings account for you, check our Best Buy savings account reviews.
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