Saga savings account: rates, features and more

Zorica Lončar

Planning to buy a house, save for retirement or jet off on that dream holiday? Or perhaps you’d just like a rainy day fund in case the unexpected should happen. Whichever is the case, a savings account could be just what you need.

Saga is one of the many providers of savings accounts in the UK. It’s not technically a bank, but works with partners in the financial services industry to offer a choice of products for customers over 50.

But is Saga the right option for you? In this guide, we’ll cover everything you need to know about Saga savings accounts, including interest rates and how to apply.

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What is a savings account?

A UK savings account is a safe place to put your money and earn interest on it, so it gradually increases in value. The interest is paid by the bank or building society providing the account, and can be at a fixed or a variable rate.

There are a few different types of savings account you can choose from to suit your needs. Your choice may depend on how much you can save, whether you can commit to a regular deposit and whether you need easy access to your money.

Some of the most popular types of savings account in the UK include:

  • Easy access - these offer instant access to your money whenever you need it, with no fees or penalties for withdrawals
  • Fixed-rate - these accounts offer higher interest rates if you can ‘lock away’ your money for a fixed period of time (i.e. 1-5 years)
  • Notice accounts - these give you access to your money, but only if you provide a pre-agreed amount of notice (i.e. 2 months).
  • Regular savers - these accounts require a regular deposit each month, up to a maximum sum.
  • Cash ISAs - these accounts let you earn tax-free interest on your savings up to a certain threshold.

Why open a savings account at all? There are a number of reasons, starting with having a financial safety net. With surplus income earning interest, you can build up a nest egg for later life or just in case you lose your job.

People also open savings accounts because they’re saving towards a particular goal, such as a deposit on a property purchase or the holiday of a lifetime.

How do savings accounts work?

When you put your money in a savings account, the bank or building society is effectively ‘hiring’ it - and they pay you a rate of interest in return. Your money is then used for investment purposes, or to lend out to other individuals or organisations.

There are strict rules though about how much of its customers’ money a bank can lend out, and how much they must keep back. This means you never have to worry about accessing your savings, even if you want to withdraw the whole sum at once.

Another important thing to know about UK savings accounts is that they usually come with protection from the government’s Financial Services Compensation Scheme (FSCS). This provides cover of £85,000 per person (£170,000 for joint accounts) just in case the bank or building society should go under¹.

Saga savings account overview

Saga offers a small selection of savings accounts provided by the US banking group Goldman Sachs International Bank².

But like many of its products and services, Saga savings accounts are only available to UK residents over the age of 50². So if you’re younger, this unfortunately means you will need to look elsewhere.

If you’re in the over 50s age group, let’s run through the savings options you can choose from at Saga.

Types of Saga savings accounts

Saga savings accounts are broken down into three distinct categories - easy access, fixed rate and cash ISA - with just one account in each.

Saga Easy Access Savings Account³

This instant access account can be opened with just a £1 deposit, and comes with no fees or charges. You can keep up to £100,000 in the account, and withdraw your money whenever you like. The interest rate is variable, with a bonus that is fixed for the first 12 months.

Saga Cash ISA⁴

Earn interest tax-free with this Saga Cash ISA, which has no fees or charges attached to the account. You can make withdrawals, but it’s important to remember that whatever you take out can’t be replaced within your tax-free allowance. Plus, you’ll lose the tax-free benefit on interest on whatever you withdraw.

Saga 1 Year Fixed Rate Saver⁵

If you’d like the security of a fixed interest rate - rather than one that could go up or down - this Saga 1 Year Fixed Rate Saver could be a good choice. You’ll get a guaranteed interest rate for 12 months, and can open the account with just £1.

However, there are a few restrictions with this account. You can’t make any withdrawals for 12 months, so to access your money you’ll need to close the account and pay an early closure fee.

You’ll also only have 14 days after opening the account to pay in all the money you want to save - up to a maximum of £100,000. After this deadline, the account ‘locks down’ and you won’t be able to pay any more in.

Saga savings accounts interest rates

When comparing savings options, it’s crucial to look closely at interest rates. So, how do rates on Saga savings accounts stack up? Let’s take a look.

AccountInterest rate
Saga Easy Access Savings Account³0.70% AER/gross (variable) - including bonus rate of 0.10% gross (fixed) for 12 months
Saga Cash ISA⁴0.70% AER/tax free (variable) - including bonus rate of 0.10% tax-free (fixed) for 12 months
Saga 1 Year Fixed Rate Saver⁵0.60% AER/gross (fixed)

How to open a savings account with Saga

You can open all of Saga’s savings accounts by applying online⁶. All you need to do is click the ‘Get Started’ button on the page and make sure you have the following details ready⁷:

  • Your email address
  • Your phone number
  • Your UK address
  • Sort code and account number of a UK current account in your name
  • National Insurance number (for Saga Cash ISA)⁸

If you need help with your application, you can call the Saga customer care team for assistance.

Sources used for this article:

  1. FSCS - protection
  2. Saga - savings
  3. Saga - easy access savings account
  4. Saga - cash ISA
  5. Saga - 1-year fixed rate saver
  6. Saga - faq
  7. Saga - savings
  8. Saga - cash ISA

Sources checked on 21-03-2022.

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.

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