Over-50s provider Saga launches two new savings deals
Its new easy access account pays a variable interest rate of 1.4% AER for one year on balances between £1 and £100,000. After 12 months, the rate falls to 1.15%.
Although this deal is competitive, there are better rates available. Marcus by Goldman Sachs Online Savings Account pays 1.45%, while Al Rayan Bank offers an expected profit rate of 1.60% on its Everyday Saver.
The second new account is a one-year fixed rate saver guaranteeing a rate of 1.15%, again on balances between £1 and £100,000.
There are much better rates available on one-year deals. For instance, Wesleyan Bank pays 1.9%.
Both savings accounts can only be opened online but offer access to a telephone support service. They also provide membership access to Saga’s Possibilities programme. Benefits include VIP experiences, ticket ballots, discounts on tickets and events, and offers from selected partners.
The new savings accounts follow Saga’s partnership with Goldman Sachs International Bank, which was announced earlier this year.
As a result of the partnership, Goldman Sachs and Saga products purchased after 30 September 2019 share a Financial Services Compensation Scheme (FSCS) licence, which means it’s important to keep total savings with the two brands to within £85,000 or face having some of them left unprotected.
Saga accounts opened before 30 September 2019 remain part of the Bank of Scotland FSCS licence.
Anna Bowes, co-founder of advice site Savings Champion, said: “These new products from Saga illustrate the need to review the whole of the savings market rather than assuming that because it’s a product marketed to the over-50s only, that it’s a best rate.
“That said, these products are actually available to any UK resident aged 18 and above.”