Saga scraps red tape and groups up with Goldman Sachs to offer a top 1.four% as it battles to win back savers
- The over-50s specialist is writing to buyer who’ve accounts paying zero.2%
- This will allow them to know they’ve entry to a much better deal
- Savers can open an account with £1 on-line or over the telephone and earn 1.four% on deposits of up to £100,000 – however the charge consists of a zero.25% bonus
Over-50s specialists Saga teamed up with funding financial institution Goldman Sachs to problem High Street names
Savers aged 50 and over can now earn a top 1.four per cent with Saga.
Over-50s specialists Saga teamed up with funding financial institution Goldman Sachs to problem High Street names.
Its new Saga Easy Access Savings Account pledges to pay a persistently aggressive charge with out implementing any difficult guidelines.
Saga is now writing to round a million savers who’ve cash in its outdated accounts paying simply zero.2 per cent to inform them of the brand new deal.
Savers can open an account with as little as £1 on-line or over the telephone and earn 1.four per cent on deposits up to £100,000.
The charge consists of a zero.25 proportion level bonus for the primary 12 months — however Saga guarantees to alert savers when that is due to run out. There are additionally no withdrawal restrictions.
This is a victory for Money Mail’s Stop Short-changing Savers marketing campaign, which requires fairer charges and less complicated accounts.
Last month we revealed easy-access accounts are too difficult, with 13 of the top 30 offers limiting when prospects can entry money.
It can be excellent news the account is offered over the telephone, as many top charges are actually reserved for these keen to run their accounts on-line.
With huge High Street banks paying a pittance it means savers who don’t use the web are more and more reliant on telephone or postal accounts.
Britain’s largest constructing society Nationwide, for instance, pays simply zero.1 per cent on balances up to £10,000 and zero.25 per cent when you have £50,000+ in its Instant Access Saver.
Halifax Everyday Saver and Web Saver, and Lloyds Bank Easy Saver, Standard Saver, Online Saver and Internet Saver pay solely zero.2 per cent.
Barclays Everyday Saver affords zero.25 per cent, or zero.three per cent when you have £50,000 or extra within the account. NatWest Instant Saver begins at zero.2 per cent up to £25,000, rising to simply zero.three per cent up to £1 million
And you earn solely zero.35 per cent with Santander Everyday Saver and a fair worse zero.15 per cent with HSBC Flexible Saver. The Marcus account from Goldman Sachs pays 1.45 per cent.
The new Saga account is just open to these aged 50 or over and could be run as a person or joint account.
You may also connect a energy of lawyer doc to it so a liked one can take care of your cash if you’re unable to handle it sooner or later.
Echoing the calls for behind Money Mail’s marketing campaign, Jeff Bromage, managing director at Saga Personal Finance, says: ‘We have listened to our customers and this is what they want — a consistently good rate, decent service and an account which is simple to understand.’
Saga’s one-year fixed-rate bond, at 1.15 per cent, is much larger than main High Street accounts, too. Halifax and Lloyds pay simply zero.55 per cent for 2 years, whereas Barclays and NatWest pay zero.65 per cent for one 12 months.
Any cash within the Saga account is roofed up to £85,000 — £170,000 on joint accounts — underneath the Financial Services Compensation Scheme.
This applies to the entire of any deposits with Goldman Sachs International Bank underneath any model, together with financial savings you will have with its Marcus account.
If you might have financial savings in outdated Saga accounts opened earlier than September 28 this 12 months, your cash continues to be with Birmingham Midshires and lined underneath the FSCS by the Bank of Scotland licence.