moneysupermaket.com: new online savings account from Saga

Commenting on the new online savings account from Saga, Kevin Mountford, head of savings at price comparison website moneysupermarket.com, said: “Providers are really waking up to the value of the affluent over 50s savings market. Saga’s new online deal follows the Coventry Building Society, who also entered the online easy-access savings market recently.

“Historically this age group has tended to be penalised, despite having high levels of disposable income. The over 50s market was deemed less profitable due to higher levels of branch-based activity – and as a result providers were unwilling to offer compelling rates. However, now silver surfers have taken to the web with a vengeance, online accounts suit the mature market as much as the banks.

“The Saga deal offers a great rate for the first year at a guaranteed 0.45 per cent above the base rate. Saga even promises to pass a rate rise on to account holders within 48 hours of a Bank of England decision. It's a fantastic result for UK savers who usually end up waiting 21 days for a rise, if they see one at all.

“This is a promising proposition for the first 12 months, but be careful in the years following. Year two sees the account match the base rate, and in year three the interest goes 0.2 per cent below the rate. Silver savers would be wise to take advantage of the easy access and re-evaluate where they stash their cash after the first year.”