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Retirement Living Guides > The Best Instant Access Savings Accounts For Over 50s

The Best Instant Access Savings Accounts For Over 50s

Happy couple opening a savings account together

Estimated Reading Time: 14 minutes

The best instant access savings accounts for over 50s provide an easy way for older adults to earn interest on their savings. These accounts are quick and simple to set up and allow you to withdraw and deposit money whenever you wish.

Knowing which account is best for you can be confusing, which is why we’ve rounded up some of the best instant access savings accounts for over 50s. We’ve also explained how they work, the pros and cons, other things to consider and the different types of savings accounts available.


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In this article:

  1. What is an instant access savings account for over 50s
  2. How do instant access savings accounts work?
  3. The best instant access savings accounts for over 50s
  4. Advantages and disadvantages
  5. Other things to consider
  6. Other types of savings accounts for over 50s



What Is An Instant Access Savings Account For Over 50s?

An instant access or easy access savings account for over 50s is one of the simplest forms of savings accounts available in the UK.

You can open an instant access savings account after a small initial deposit. Then, unless stated otherwise, you’ll have the freedom to make withdrawals and further deposits as often as you like.

You’ll earn interest on whatever savings are in your account. However, this flexibility does often lead to lower interest rates than other types of savings accounts.

Some instant access savings accounts are exclusively aimed at over 50s, while others are appropriate for people of all ages, including over 50s.





How Do Instant Access Savings Accounts Work?

One of the main purposes of an instant access savings account is to make the process of paying in and withdrawing money as quick and easy as possible.

Once you’ve chosen an account, you’ll open it by making an initial minimum deposit. This is often as little as 1p or £1, but could be as much as £5,000 in some cases.

Once the account has been opened, you’ll start earning interest on the money you’ve put in. This interest rate will have been stated upfront, but it’ll also be variable, meaning it could go up or down, depending on factors such as the Bank of England base rate.

There may be a bonus interest rate to attract new customers. This bonus rate will be higher to begin with, but will drop after a certain amount of time, such as after 6 or 12 months.

Most instant access accounts pay interest yearly, but you might be able to opt for monthly interest payments if you’d prefer. Interest compounds, meaning that if it’s left in your account, you’ll then start earning interest on the interest paid, helping your savings grow faster.

Unless the provider has stated specific withdrawal restrictions, you’ll be able to withdraw your money whenever you want - advanced notice isn’t required. This is also the case if you wish to make further deposits.

Some providers will limit the number of withdrawals you can make. If you exceed this withdrawal limit, a reduced interest rate may be imposed.





Here Are the Best Instant Access Savings Accounts For Over 50s

Here, we’ve compiled some of the best instant access savings accounts for over 50s currently on the market.

The best account for you will depend on your individual circumstances, so be sure to check out things like the interest rate, minimum and maximum balance and account access for each option.

We’ve sorted these accounts by their interest rate, starting with the highest. You can use our table below to quickly see what each has to offer!

ISA Name Provider Interest Rate (AER Variable) Minimum and Maximum Balance How Can the Account Be Accessed? Is It Protected By the FSCS?
Instant Access Account Chip 4.84% £1 to £250,000 App Yes
Limited Issue Online Access Account Leeds Bulding Society 5.10% £1,000 to £1,000,000 Website Yes
Online Easy Access Account Hampshire Trust Bank 4.90% £1 to £250,000 Website Yes
Flexible Saver Ford Money 4.60% £1 to £2,000,000 Website Yes
Triple Access Savings Account Paragon Bank 4.55% £1 to £500,000 Website Yes
Online Saver Post Office Money 4.70% £1 to £200,000 Website Yes
Internet Saver Plus Yorkshire Building Society 4.80% £1 to £500,000 Website Yes
Double Access Account Aldermore 4.90% £1,000 to £1,000,000 Website Yes
Freedom Savings Account RCI Bank UK 4.75% £100 to £250,000 Website and app Yes
Online Flexi Saver Investec 4.70% £5,000 to £250,000 Website Yes
Easy Access Account UBL UK 4.18% £1,000 to £85,000 Website, phone and post Yes
Easy Access Account Brown Shipley 4.67% £1,000 to £85,000 Website, phone and post Yes
Online Savings Account Marcus By Goldman Sachs 4.75% £1 to £250,000 Website and app Yes

Chip Instant Access Account

The Chip Instant Access Account offers one of the highest interest rates of the options we’ve listed - 4.84% (variable). This interest is paid every month. You can also deposit and withdraw near instantly, making this account a really efficient one for people aged 50 and over to use.

Interest rate: 4.84% AER variable

Minimum and maximum balance: £1 to £250,000

Account access: App

Protection scheme: FSCS Protected

Click here to learn more about the Chip Instant Access Account.


Leeds Building Society Limited Issue Online Access Account

If you want to access your money at any time and would prefer to manage your savings online while also having a high interest rate, this instant access savings account from the Leeds Building Society is a great choice.

If you wish, any interest can be transferred to a different account held with the Leeds Building Society.

Interest rate: 5.10% AER variable

Minimum and maximum balance: £1,000 to £1,000,000

Account access: Website

Protection scheme: FSCS Protected

Click here to learn more about the Leeds Building Society Limited Issue Online Access Account.


Hampshire Trust Bank Online Easy Access Account

Interest is paid annually on this easy access account from the Hampshire Trust Bank. An account can be opened and managed online, and unlimited withdrawals can also be made. Over 50s opt for this account who would like quick access to their money at any point, while also being able to make regular deposits.

Interest rate: 4.90% AER variable

Minimum and maximum balance: £1 to £250,000

Account access: Website

Protection scheme: FSCS Protected

Click here to learn more about the Hampshire Trust Bank Online Easy Access Account.


Ford Money Flexible Saver

Over 50 who open a flexible saver account through Ford Money will have a higher interest rate than most other options on the market, while interest can be paid monthly or yearly.

You can also open multiple accounts (joint accounts are available as well) and create savings goals to give you something to work towards.

Interest rate: 4.60% AER variable

Minimum and maximum balance: £1 to £2,000,000

Account access: Website

Protection scheme: FSCS Protected

Click here to learn more about the Ford Money Flexible Saver.


Paragon Bank Triple Access Savings Account

You can make up to three withdrawals every 12 months before your interest rate is impacted. From the fourth withdrawal onwards, the interest rate of the triple access savings account from Paragon falls from 4.55% to 1.50%.

Over 50s can pick between monthly or annual interest payments. You can make unlimited deposits, while an account can be opened using as little as £1.

Interest rate: 4.55% AER variable

Minimum and maximum balance: £1 to £500,000

Account access: Website

Protection scheme: FSCS Protected

Click here to learn more about the Paragon Bank Triple Access Savings Account.


Post Office Money Online Saver

This instant access over 50s savings account from Post Office Money has a 4.70% interest rate for the first 12 months. This then drops to 1.55%.

There’s also plenty of flexibility, with monthly or annual payments and the ability to fully manage your account online.

Interest rate: 4.70% AER variable

Minimum and maximum balance: £1 to £2,000,000

Account access: Website

Protection scheme: FSCS Protected

Click here to learn more about the Post Office Money Online Saver.


Yorkshire Building Society Internet Saver Plus

An internet saver plus account can be opened through the Yorkshire Building Society after an initial deposit of just £1 or more. Your maximum balance can be up to £500,000.

Interest is paid out annually and the account can be managed online.

Interest rate: 4.80% AER variable

Minimum and maximum balance: £1 to £500,000

Account access: Website

Protection scheme: FSCS Protected

Click here to learn more about the Yorkshire Building Society Internet Saver Plus.


Aldermore Double Access Account

Over 50s will benefit from a higher interest rate - 4.90% AER - when making one or two withdrawals per year. If you make three or more withdrawals, this annual interest rate falls to 1.50%.

Savings can be deposited whenever you wish, while an account is quick and easy to set up. If you change your mind within 14 days of opening this easy access savings account, it can be cancelled without incurring any sort of penalty.

Interest rate: 4.90% AER variable

Minimum and maximum balance: £1,000 to £1,000,000

Account access: Website

Protection scheme: FSCS Protected

Click here to learn more about the Aldermore Double Access Account.


RCI Bank UK Freedom Savings Account

The freedom savings account from RCI Bank UK has unlimited access and a seven-day-a-week service based in the UK.

There are no penalties for making too many withdrawals and there’s also no kind of notice period to make a withdrawal.

Interest rate: 4.75% AER variable

Minimum and maximum balance: £100 to £250,000

Account access: Website and app

Protection scheme: FSCS Protected

Click here to learn more about the RCI Bank UK Freedom Savings Account.


Investec Online Flexi Saver

This instant access savings account for over 50s from Investec is easy to set up and can also be linked to your current account. This means the monthly interest can either be paid into this savings account or your current account.

Once set up, money can be instantly withdrawn and deposited. However, the minimum balance is £5,000, which is much higher than most other easy access savings accounts.

Interest rate: 4.70% AER variable

Minimum and maximum balance: £5,000 to £250,000

Account access: Website

Protection scheme: FSCS Protected

Click here to learn more about the Investec Online Flexi Saver.


UBL UK Easy Access Account

This easy access account from UBL UK can be managed via their website, over the phone or by post. Interest is paid at the end of each month, meaning you’ll see a regular return on the money you’ve put in.

There’s no limit to the amount of withdrawals you can make, but the minimum withdrawal amount is £500.

Interest rate: 4.18% AER variable

Minimum and maximum balance: £1,000 to £85,000

Account access: Website, phone and post

Protection scheme: FSCS Protected

Click here to learn more about the UBL UK Easy Access Account.


Brown Shipley Easy Access Account

The interest rate of the Brown Shipley easy access account is 4.16% AER and 4.57% gross. Interest is credited on the last day of each month. The minimum amount you can top up your account with is £500, but you can make an unlimited number of withdrawals.

This account often appeals to older adults as there are several different ways to access and manage it.

Interest rate: 4.67% AER variable

Minimum and maximum balance: £1,000 to £85,000

Account access: Website, phone and post

Protection scheme: FSCS Protected

Click here to learn more about the Brown Shipley Easy Access Account.


Marcus By Goldman Sachs Online Savings Account

While the interest rate of this instant access online savings account from Marcus By Goldman Sachs is just 4.75%, this includes a fixed bonus rate of 0.49% for the first 12 months. Interest is calculated daily and is paid into your account every month.

Interest rate: 4.75% AER variable

Minimum and maximum balance: £1 to £250,000

Account access: Website and app

Protection scheme: FSCS Protected

Click here to learn more about the Marcus By Goldman Sachs Online Savings Account.





Advantages and Disadvantages Of Instant Access Savings Accounts For Over 50s

Advantages

  • A great way of getting into the habit of saving
  • They’re easy to set up and manage
  • You don’t need much money to open up an instant access savings account. The minimum deposit is often just 1p or £1
  • You can deposit money to boost your savings whenever you want
  • You can easily withdraw money, without needing to provide the bank or building society with any notice
  • You have a personal savings allowance limit, so depending on your tax band, you won’t pay tax on the first £500 to £1,000 of interest earned

Disadvantages

  • Interest rates are variable, so could go up or down. This is why the term ‘Annual Equivalent Rate’ (AER) is used. If the interest rate falls below the inflation rate, you may lose money
  • Some instant and easy access accounts will limit the number of withdrawals you can make within a given period without losing interest
  • Some instant access accounts will take a few days to process withdrawals
  • You might only be able to access the account online
  • Other account types offer higher interest rates, such as fixed-rate savings accounts and certain regular saver accounts
  • The ease with which you can gain access to your money may increase the temptation to spend it

Older man and women using a laptop





What Else You Should Consider When Choosing An Over 50s Instant Access Savings Account

When it comes to instant access savings accounts for over 50s, there’s no one-size-fits-all option. Here are the factors to weigh up when making your decision:

  • Interest rate - You’ll want the money you’ve put aside to generate a return, which is why the interest rate is the most important feature of a savings account. Rates will vary from provider to provider. Some rates will include a short-term bonus rate, which will drop after a fixed amount of time (often 6 or 12 months). You may need to keep a certain amount of money in your account to qualify for this bonus interest

  • Minimum balance to open an account - You’ll need to put some money into your savings account to open it in the first place. This is usually very low for instant access accounts - often as little as £1. If the minimum balance is higher, make sure you have enough money to open an account

  • Managing your account - How easy is it to open and manage an account? Can it only be managed online, or can you go into a physical branch as well? There could also be an app

  • Penalties and restrictions - Some accounts will place a limit on the number of withdrawals you’re able to make per month or year. Your interest rate could be reduced if you exceed this maximum number of withdrawals

  • FSCS protection - The vast majority of savings accounts in the UK are protected under the Financial Services Compensation Scheme (FSCS). Here, your savings will be protected up to the value of £85,000. Be sure to check whether your chosen provider offers security for your money




Other Types of Savings Accounts For Over 50s

  • Cash ISAs - ISA stands for ‘individual savings account’. These allow people to earn interest on savings, without having to pay income tax on these earnings. For the 2023/2024 tax year, the most you can save in a cash ISA is £20,000. We have an article listing some of the best cash ISA rates for over 50s

  • Easy access ISAs - A specific kind of ISA, these are similar to easy or instant access savings accounts. The difference is that all interest is free from income tax. These make more sense if your interest earnings are likely to pass £1,000, as this is the amount most people can earn in interest without paying any tax

  • Regular savings accounts - You’ll save a minimum amount each month. This financial commitment usually leads to better interest rates and also means the amount of money in your savings account will increase more quickly

  • Notice accounts - You’re able to make withdrawals, but only after providing notice. This notice period will have been agreed on in advance. It could be anywhere between a couple of weeks and several months. Often, longer notice periods lead to higher interest rates

  • Fixed rate savings accounts - If you’re confident of not needing some money for a while, it can be placed in a fixed rate savings account. Your money will be locked away for a set amount of time - usually between one and five years - in return for a higher interest rate that won’t change. If you need to access this money before the amount of time has elapsed, you’ll likely face interest penalties or early exit fees. These are also known as fixed rate bonds

To ease your search, we also have an article explaining the best savings accounts for over 60s.





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