Is it worth saving with Saga's over-50s savings accounts?

Saga offers a range of savings accounts exclusively available to over 50s. But they're not the best home for your savings when it comes to interest rate.

Saga has increased the interest rate on its three-year fixed rate postal savings bond, and like all Saga products it's exclusively available for the over-50s.

But does having an age-exclusive savings account mean you get a better return compared to savings accounts available to everyone?

What Saga's accounts offer

The account has been boosted by 0.35% and now pays 2.15% on deposits from £1 and 2.50% on deposits from £10,000. The new, limited issue account is unlike most other bonds as it allows access to funds by post, subject to a charge.

Saga offers two other fixed rate postal bonds: a one-year deal paying 1.75% and a two-year deal paying 2.10% (which also allows access to funds by post subject to a charge) on balances from £1. There’s also an easy access account offering 1.35% which requires a minimum deposit of £1,000.

All the accounts offer the choice of interest being paid monthly (allowing you to draw a regular income from your savings) or annually.

[Related story: The bank accounts that offer the most valuable rewards]

Other over-50s savings accounts

According to financial information site Moneyfacts there are no other providers which offer fixed rate bonds exclusively to older savers, with only a handful who offer such restricted easy access savings accounts.

This includes Earl Shilton Building Society, Danske Bank, Darlington Building Society, West Bromwich Building Society and Chorley & District Building Society.

The Earl Shilton Building Society Heritage Account is the only over 50s account which offers a better rate than Saga, paying 1.4% on balances from £1,000. However, the account limits users to four penalty-free withdrawals a year.

The rest pay pitiful rates of between 0.05% and 1%.

[Related story: Why rising interest rates don't equal rising savings rates too]

How they compare

Here are the top rates across easy access, one-, two and three-year fixed rate bonds that are open to everyone.

Easy access accounts

As you can see neither Saga’s 1.35% or Earl Shilton’s 1.40% rate make the top two cut on easy access deals.

One-year fixed rate bonds

Again Saga’s exclusive one-year fixed rate bond paying 1.75% doesn’t impact the very top of the table and pays 0.31% less than the top deal from RCI Bank and Charter Savings Bank.

Two-year fixed rate bonds

On two-year deals Saga’s 2.1% offering fails to feature in the best buys.

Three-year fixed rate bonds

*Anticipated profit rate

Again Saga's deals don't come close to the best buys.

So exclusive over-50s accounts clearly aren’t a better home for your money than accounts open to all, at least right now. Therefore you shouldn’t automatically think you are getting a better deal.

Compare savings accounts

Over-50s insurance

Savings accounts aren’t the only place you will find deals reserved for the older generation.

Over-50s deals are also prevalent on home insurance, car insurance and life insurance.

However, you should always compare what you can get against deals open to all. Some over-50s deals have been branded a rip-off by campaign group Which? so you should be on your guard.

Compare insurance at loveMONEY.com