As life expectancy is on the up, many people are finding their pension pot is insufficient, prompting more people to take advantage of high interest savings accounts.

The first saving product for over 50s from Alliance & Leicester is its new Premier 50 fixed rate bond which offers 7.5 per cent gross APR, but is only available for a limited period.

The account has been launched in response to Alliance & Leicester’s research, which showed that over 50s have a more cautious attitude to money. According to the study, around 30 per cent of over 50s never take risks with their money, compared to one in five under 35s.

The research also found that women are more cautious than men when it comes to over 50s finances. The Bond is exclusive to those over 50, savings manager at Alliance & Leicester, Hetal Parmar, explained: “Our Premier 50 Fixed Rate Bond is ideal for the over 50s who don’t like to take risks with their finances – it pays a fixed 7.5 per cent in interest and is available to customers who open or hold a Premier 50 Current Account.”

The second new product for savers over 50 is Alliance & Leicester’s Growth & Income Account, which is also available to all existing Premier 50 Current Account holders. The Growth & Income Account is an investment account that offers 7 per cent APR on half of the account and any growth from the stock market on the other half.

Hetal Parmar continues: “For those more adventurous over 50, the Growth & Income Account may be just the ticket. Not only is all the capital safe – to be returned at the end of the five years – but half of it earns 7 per cent every year, while the other half benefits from growth of the FTSE 100 Index.”

© Fair Investment Company Ltd