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Grey market savings accounts come under scrutiny

05 May 2005
Independent financial research body Moneyfacts has turned its attention to savings accounts aimed specifically at the so-called 'grey market.'

These accounts often appear to offer particularly favourable rates of interest for savers aged 60 and over - particularly the Coventry Building Society Sixty Plus Saver, which offers a rate of 6.00 per cent on balances of £500 and more.

With the exception of Coventry's Sixty Plus Saver plan, Moneyfacts warns that these accounts can be misleading, however, offering little more by way of returns than many standard accounts.

"The recent flurry of activity in savings accounts for pensioners is certainly a step in the right direction, especially bearing in mind that many High Street banks are still offering accounts paying less than the rate of inflation," said Rachel Thrussell, head of savings at Moneyfacts.

"However it is important that those of pensionable age don't just look at these new accounts in isolation, as there are better deals available for customers regardless of age."

Recent grey market savings accounts launched include Skipton's Pension Plus, paying 4.5 per cent from £500; West Bromwich Building Society's Oak, offering 4.25 per cent from £10, and Yorkshire Building Society's Access Saver for Pensioners, paying 3.65 per cent.

Click here to compare the best savings accounts.

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