Glimmer of hope for silver saver accounts

Silver saver accounts for older people could be rescued from being caught up in an age discrimination ban.

Earlier this week, the Building Societies Association (BSA) raised concerns that the Government’s new Equality Bill could make savings accounts aimed at the over 50s age group illegal. At present, ‘silver saver’ accounts from banks offer a slightly service in recognition of the fact that older people tend to have a fixed income, and different savings needs to younger age groups. But Clause 27 of the Bill would outlaw discrimination on the grounds of age if it became Act.

However, during the Bill’s second reading in Parliament, Equality minister, Harriet Harman suggested that provisions may be made to protect beneficial exceptions such as silver saver accounts.

Ms. Harman said:

“The Bill will prohibit such unjustifiable age discrimination in the provision of goods and services. It will mean that an insurance company will not be able to discriminate arbitrarily against older people. We will outlaw the discrimination and unfairness that still persists against older people in social care and in the national health service.”

“As the Bill goes through the House, we will consult on how the measure will be put into practice. The new provision will not prevent the justifiable preferential treatment of older people, such as free bus passes or cheaper ticket prices for pensioners,” she added.

Speaking to This is Money, a spokeswoman for the Building Societies Association, said:

“It’s encouraging that they have committed orally to not preventing preferential treatment of older savers. The practice may not be permitted under legislation, but hopefully regulation will emerge from the summer consultation that will allow [the accounts] to survive.”

If you have decided that now is the time to weigh up your savings options, TotallyMoney.com can help. Visit http://www.totallymoney.com/banking/ to compare great deals on bonds, ISAs and regular savings accounts