Saga launches Internet savings account

Rachel Thrussell, Head of Savings at Moneyfacts.co.uk, comments: “Saga has expanded its range of over 50s accounts with the launch of a new internet account Online Savings, paying a best buy rate of 6.20%. While this rate is very competitive, savers would be wise also to check out the Northern Rock account, which pays 0.10% more and doesn’t include a bonus, like the Saga deal. For those aged over 60, the Coventry Sixty-Plus eSave offers the top-paying rate of 6.40%.

“However, it must be remembered that other internet accounts are available to everyone, paying slightly higher rates, such as 6.26% from Bradford and Bingley and 6.25% from Sainsbury's Bank.

“Savers should not assume that specialist accounts will always offer the best rates. Better rates can often be found on accounts available to the whole market.”