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If you’re over 60 and looking for the best savings account, the right one for you will depend on whether you’ll need regular access to your money, or if you’re prepared to tie it up for a year or more.
It will also depend on how you want to operate your account, and whether you want to receive interest annually or monthly. For example, you might prefer to manage your savings online, either via your mobile or computer, or you may be more comfortable with a postal, branch-based or telephone account.
Here, we’ve rounded up some of the best savings accounts for over-60s, depending on the length of time you want to commit your money for, whether you’re looking for tax-free returns, and how you want to manage your account.
What are the best savings accounts for over-60s in the UK?
There are currently 1,850 savings accounts paying inflation-beating returns, according to financial website Moneyfactscompare.co.uk.
Being able to earn returns that keep pace with rising living costs is really important for savers of all ages, but especially for over-60s savers who often depend on savings returns to supplement their retirement income, and who don’t want to take any risks with their cash.
Below, we highlight some of the best savings accounts for over-60s in the UK, which you can filter to find the right type of account to suit your needs. Bear in mind that if, for any unlikely reason, the bank or savings provider you hold money with runs into financial difficulties, the Financial Services Compensation Scheme (FSCS) will cover your savings up to £120,000 with a single institution, so if you have two accounts with the same bank which together hold more than £120,000, you won’t get the full amount back. Find out more in our guide Are my savings safe?
Best online easy access savings account for over-60s
If you like managing your money online, either using your mobile or a computer, then the good news is that online accounts almost always pay the top rates on interest. That’s because online savings providers have lower overheads due to not having branches and are therefore able to pass some of this benefit on to their customers.
Our table shows the best easy access accounts currently available:
Top 5 Easy Access Accounts
Best postal, phone and branch-operated accounts for over-60s
Although the most competitive savings rates are generally offered by online accounts, if you prefer to operate your savings accounts by telephone, in branches or by post, then there are still options to choose from.
Current best buys if you’re looking for a branch-based easy access savings account include Skipton Building Society’s Two Access Saver account, which pays 3.90% AER on a minimum balance of £1. This account can be opened in branches, over the phone, by post or online. You can take money out of your account twice a year penalty-free, but if you want to make more withdrawals than this you can only do so by closing your account.
Skipton also offers a Four Access Saver paying a lower rate of 3.60% AER, which allows up to four withdrawals a year.
Best cash ISAs for over-60s
If you’re looking for tax-free returns, a cash individual savings account (ISA) is well worth considering.
Bear in mind, however, that cash ISA rules are changing from April 2027. These will see the amount under-65s can pay into cash ISAs capped at £12,000 with effect from 2027, so if you’re aged over 60 but under 65, you won’t be able to pay in more than this amount from next year. During the current 2026/27 tax year, however, you can still pay your whole £20,000 annual ISA allowance into cash ISAs if you want to. You can read more about these changes in our article What changes to cash ISAS could mean for you.
You can find some of the best easy access cash ISA rates currently available in our table below.
Top 5 Easy Access ISAs
See our article Best cash ISA rates – which cash ISAs pay the most interest? to find out more
Best fixed rate savings accounts for over 60s
The highest-paying fixed rate savings bonds are usually online-only accounts, and are often provided by so-called ‘challenger’ banks rather than the high street banking names we are more familiar with.
Top 5 Fixed Rate Accounts
Fixed rate cash ISAs are also worth a look as returns are free from tax.
Top 5 1-Year Fixed Rate ISAs
Top 5 5-Year Fixed Rate ISAs
Don’t forget pensions!
Pensions can also be a great home for your savings, especially as you’ll receive tax relief on the contributions you make. For example, if you’re a basic rate taxpayer a £100 contribution into your pension will currently only cost you £80 thanks to tax relief. If you’re a higher-rate taxpayer the same contribution will only set you back £60.
If you’re in your 60s it could be even more worthwhile paying into a pension if you’re looking ahead to retirement, as you’ll still qualify for tax relief on your contributions up to the age of 75 and you’ll also be able to access your pension savings (including the top up from the taxman) much sooner than someone younger. Read more in our guide How pension tax relief works.
Even paying in a small amount each month can make a difference to your retirement pot, because of the effect of your returns generating more returns (known as compounding).
Remember, however, that once you’ve started taking money out of your pension, the amount you can pay into your pension, known as your Annual Allowance falls from £60,000 to £10,000 and becomes known as the Money Purchase Annual Allowance (MPAA). If you simply take a 25% tax-free lump sum from your pension, you will not be subject to the MPPA. Learn more in our article What is the Money Purchase Annual Allowance?
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If you’re considering seeking professional financial advice on the options available to you, we’ve partnered with nationwide Chartered independent advice firm Fidelius to offer Rest Less members a free initial consultation with a qualified financial adviser. There’s no obligation, however if the adviser feels you’d benefit from paid financial advice, they’ll talk you through how that works and the charges involved.
Fidelius are rated 4.7 out of 5 from over 2,600 reviews on VouchedFor, the review site for financial advisers.
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