Senior Savings Accounts
Savings accounts can be highly beneficial for seniors who don’t want their funds to be connected with higher-risk investment accounts. Funds deposited into savings accounts are insured by the federal government. And although savings accounts grow more slowly than mutual funds or other forms of investments, the upside for seniors is that many would rather have their funds not be exposed to economic downturns that could wipe out their retirement savings. The best savings accounts for seniors minimize transaction and account fees while maximizing interest rates. We evaluated many options to come up with our top 3 savings accounts for seniors, which we’ll describe in greater detail below. Read on to see which savings accounts benefit senior citizens the most and why.
The first great savings account for seniors is offered by SFGI Direct. This online bank is a division of Summit Community Bank, which is located in Moorefield, West Virginia - but don’t let that fool you. Anyone can get an account with SFGI Direct; all that’s needed is a reliable Internet connection. This is a great savings account for seniors because of the great 1.06 percent annual-percentage yield, which is better than most traditional savings accounts. Applying online is easy, but seniors who aren’t comfortable with applying online can also call and talk with a banker. In addition, accounts can be designated with up to four beneficiaries, which is another great benefit for peace of mind.
Next on our list is a savings account with Synchrony Bank. This is another online-only bank with great savings account options for seniors. With an APY of 1.05 percent - just slightly behind the rate advertised by SFGI Direct - an initial deposit of $4,000 becomes $4,213 after a period of 60 months. Seniors can leave their savings in these FDIC-insured accounts knowing that their money will continue working in their favor. Also, there’s no minimum fee for seniors who maintain just a $30 minimum balance, which is a great deal for seniors who are on fixed incomes. Withdrawals from these online savings accounts can be made through ATM machines or over the phone, or seniors can go online to move money without needing to leave their homes.
The third best senior savings account on our list is the online savings account offered through Barclays. This secure savings account offers a 1.00 APY along with other benefits such as 27/7 account access and online transfers between this account and accounts with other banks. This is a great benefit for seniors who might have their retirement savings spread out across many savings plans. There are no minimum balances to open this account as well as no monthly fees. Seniors already face enough financial pressures from healthcare and housing costs, and this savings plan is a no-stress option.
Seniors have numerous options when starting new savings accounts. And while savings accounts aren’t the best ways for growing your money, these plans do offer a great deal of safety and peace of mind. Online banks are at the forefront of the savings account industry for their abilities to offer great yields while requiring less in the way of minimum balances and monthly fees. Do your research and choose the savings account that best meets your needs.