Best High-Interest Savings Accounts for Over 60s in 2025

What Are Easy Access Savings Accounts?

Easy access savings accounts let you add or withdraw money with few restrictions. The interest rate is usually variable, which means it can go up or down. Some accounts include a temporary bonus rate that expires after a set period, so it is worth noting when any bonus ends and what the reversion rate will be. These accounts suit emergency funds or day-to-day buffers because your cash stays available, often via app, telephone, or branch. Check for minimum balances, withdrawal limits per month, and whether linked current accounts are required.

How Do Fixed-Rate Savings Accounts Work?

Fixed-rate savings accounts (often called fixed-rate bonds) lock your money for a term—commonly 6 months to 5 years—in exchange for a set AER that does not change during the term. They can offer higher rates than easy access because you forgo flexibility. Early withdrawals are either not allowed or may require a significant interest penalty, so only commit cash you will not need during the term. Many providers let you choose monthly or annual interest payments; monthly interest can help with budgeting, while annual compounding may slightly improve the effective return.

What Are Tax-Free Savings with ISAs?

Cash ISAs let you earn interest without Income Tax, up to the annual ISA allowance set by the UK government each tax year. For many retirees, the Personal Savings Allowance (PSA) also matters: basic-rate taxpayers can typically earn up to a set amount of interest tax-free each year under the PSA, with a lower threshold for higher-rate taxpayers and none for additional-rate taxpayers. The ISA wrapper can still be valuable if your interest could exceed the PSA or if you want tax-free income long term. Consider flexible ISAs (which allow withdrawals and replacements in the same tax year) and whether an ISA offers easy access or fixed terms.

Are There Specialist Accounts for Over-60s?

Age-targeted savings accounts in the UK are less common today. Instead, providers focus on product features that may appeal to over-60s, such as monthly interest payments, passbook or branch-based accounts, and robust telephone support. Notice accounts—requiring a set notice period before withdrawals—can bridge the gap between access and rate. Also look for practical support like power of attorney processes, joint account options, cheque or cash handling at branches or Post Office counters, and accessible service in your area. Focus on service quality, clear terms, and how you prefer to manage money.

What to Consider When Choosing a Savings Account

• Safety: Check Financial Services Compensation Scheme (FSCS) coverage—up to £85,000 per eligible person per authorised institution, or £170,000 for joint accounts. Some brands share a licence, so holdings may be aggregated.
• Access: Decide how often you may need withdrawals, whether you are comfortable with apps, and what branch or phone support you expect.
• Rate type: Variable rates can change; fixed rates provide certainty but restrict access. Look for bonus conditions and notice-period rules.
• Interest payments: Monthly vs annual interest can affect budgeting. Confirm how interest is paid and whether it compounds.
• Tax: Weigh the PSA against ISA benefits, especially if interest could push you into paying tax.
• Practicalities: Consider authentication steps, card or passbook preferences, and the quality of local services.

Below are indicative 2025 ranges to help frame comparisons. Always confirm the latest AER and terms directly with providers before applying.

Product/Service	Provider	Cost Estimation
Easy Access Saver	Marcus by Goldman Sachs	3.75%–5.00% AER (variable)
Easy Access Saver	Chase UK	3.80%–5.10% AER (variable, may include bonus)
1-Year Fixed Rate Bond	Shawbrook Bank	4.50%–5.50% AER (fixed)
2-Year Fixed Rate Bond	Aldermore Bank	4.00%–5.30% AER (fixed)
Cash ISA (Easy Access)	Nationwide Building Society	3.20%–4.80% AER (variable)
Notice Account (60–120 days)	Yorkshire Building Society	3.50%–5.00% AER (variable)
Income Bonds (Monthly interest)	NS&I	3.00%–4.50% AER (variable)
Fixed Cash ISA (1–2 years)	Virgin Money	3.80%–5.20% AER (fixed)
1–3 Year Fixed Rate Bond	Coventry Building Society	4.00%–5.40% AER (fixed)

Prices, rates, or cost estimates mentioned in this article are based on the latest available information but may change over time. Independent research is advised before making financial decisions.

FSCS protection only applies to UK-authorised institutions; NS&I is backed by HM Treasury rather than the FSCS. If you hold more than the protection limit, consider spreading funds across different banking licences. For fixed-rate ladders, splitting money across multiple maturities can give a blend of access and rate stability. With variable accounts, review rates periodically because providers can adjust them.

Conclusion: For over-60s, the right account often blends access, reliability, and a competitive AER. Easy access accounts suit emergency reserves, fixed-rate bonds can lock in known returns, and Cash ISAs help manage tax. Examine FSCS cover, service quality, and how you like to bank—online, phone, or branch. Align the mix to your time horizon and income needs, and keep reviewing rates and terms as the market evolves.