8th July 2014
Two thirds of over 50s check the rates on their savings accounts at least every six months while six in ten over 50s switch savings accounts to get the best interest rate according to Saga.
The research suggests that older savers may not be the ones who simply leave their money in poorly –performing accounts. The financial watchdog said this week, that it believed banks get away with paying low rates because people do not move their money.
This came as part of an interim report on the savings market, with a final report, which could lead to the regulator taking action to improve the market published later this year.
Men are more likely than women to check interest rates regularly. The Saga research shows that two thirds check their rates at least every six months and just over a quarter check once a year. However, one in 12 over 50s say they have never checked the interest rate on their savings accounts.
Men over 50 run a tighter ship than women the same age when it comes to making sure their money is working as hard as possible. Just over a third of men (35%) say they check interest rates every month whereas women are content checking interest rates annually (12%). However, men and women are equally likely to jump ship if another account is offering a better interest rate (men 62%, women 60%).
Andrew Strong, chief executive, Saga Personal Finance says: “Time goes so quickly that it’s easy to forget about the money that is stashed away for a rainy day – whether you want to or not. So it could be worth taking the time to make a note of when you can free up your money. Higher cash ISA limits are something which we have campaigned for on behalf of our customers, therefore we are delighted to be able to offer them an attractive rate to help them make the most of the change.
“We understand that our customers need their money to work as hard for them as possible, we always contact them before their fixed rate ends to remind them that they need to move their money and we offer existing customers at least the same rates as new customers.”
The poll also showed that under a third (29%) of over 50s describe themselves as regular savers using direct debit to contribute to savings every month. Some 37% say they save on an ad hoc basis whenever they have something to spare and just under a fifth (18%) say they try to save each month, but this doesn’t always happen.
Polling firm Populus interviewed 9,725 adults, all aged 50 and over, online between 13th and 24nd February 2014.