Whether you are saving for a once-in-a-lifetime vacation or to supplement your pension, there are many savings tools for people over 60. Finding the right savings tool in your golden years means looking for different features in an account than you would have in your 20s or 30s. Read on to learn about the best savings accounts and products for people over 60.
Sometimes the best approach to saving money is the simplest. Opening a high yield savings account has many benefits for people over 60 that longer-term savings tools lack.
There are almost no restrictions on savings accounts compared to other deposit products:
Note that online savings accounts often offer higher rates of return than brick-and-mortar banks.
CDs allow you to save money and earn a fixed amount for whatever term you choose. Terms typically range from three to 60 months.
Once the CD matures at the end of its term, you can choose to withdraw your deposit and its earnings or renew the CD.
If you are 60 and earning a taxable income, you still have a time to contribute to a Traditional IRA before you must begin making withdrawals. Maxing your IRA contribution could net you a tidy sum without the risks of stock market fluctuations.
You can contribute up to the IRS contribution limits in pre-tax dollars, and your required minimum distributions, which start at age 70 1/2, will be taxed as regular income.
You can open a Roth IRA at any age as long as you earn taxable income that does not exceed certain limits. Your contributions develop tax free for life, and you can begin making tax- and penalty- free withdrawals after five years.
Consult your financial or tax advisor before contributing to an IRA.
Are you over 60 and looking for the best savings account? Synchrony Bank can help. We have high yield savings accounts, CDs, and IRAs. We offer:
To find the best savings account for people in their 60s, call Synchrony Bank at 1-844-345-5789 or find us online.
Roth IRA: http://www.rothira.com/roth-ira-beneficiary-rules
*ANNUAL PERCENTAGE YIELD (APY): All APYs are accurate as of 07/16/2018.
APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For Money Market and High Yield Savings Accounts, the rate may change after the account is opened. For CDs, a minimum of $2,000 is required to open a CD and must be deposited in a single transaction. A penalty may be imposed for early withdrawals. After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time. The APY shown for CDs and IRA CDs is for a 60-month CD with a balance of at least $25,000. Click here for all CD rates and terms offered.