Natwest and RBS launch pensioner savings accounts

09 February 2009 / by Rebecca Sargent
As interest rates continue to fall and damage savers, Natwest and RBS have launched savings accounts aimed at helping suffering pensioners.

The Bank of England's interest rate currently stands at 1.5 per cent and is expected to fall to one per cent later today, potentially pushing savings interest rates as low as zero.

Because of this, and the fact that many pensioners rely on interest from their savings to supplement their pension, Natwest and RBS have launched a savings account specifically for those who are over 60 or drawing a pension.

The Pensioner Fixed Rate Account is a two year account offering a fixed interest rate of up to four per cent, depending on the balance, and is available to both Natwest and RBS customers.

In addition, Natwest is launching its Telephone Saver PLUS, which is a savings account designed specifically for those over 50 and comes with a top rate of 2.8 per cent.

Commenting, Carol Sleith, head of savings at Natwest and RBS said: "Many individuals over the age of 50 rely on their savings for income, especially during times of financial uncertainty.

"By introducing two new accounts, we are able to further meet the savings needs of our customers and offer a choice of ways to save."

Several campaigners are fighting for pensioners who are afflicted by falling interest rates, including The Telegraph, and Saga, which both believe that pensioners should not be taxed so much on their savings.

Commenting, Roger Ramsden, CEO of Saga Personal Finance said: "We feel that it is a real injustice that over 50s who have worked hard to build up substantial nest eggs to fund their golden years, now see interest on their savings being not only eroded but also taxed.

"In our experience it is not pensioners who have huge mortgages and credit card bills and so they should not have to foot the bill for others' borrowing."

© Fair Investment Company Ltd