Security is more important than rates, study finds

Over-45s value financial security over getting the best savings interest rates, a study has found.

A report from the Financial Services Compensation Scheme FSCS revealed that the older generation are more likely to choose the Isa provider on whether they have an official compensation scheme than any other factor.

Younger people are less concerned about the savings safety net, with only 18 per cent saying it was a consideration.

Getting the best savings interest rates was the most important consideration for a third of savers and men were more likely to prioritise competitive rates than women.

"The facts support the stereotypes as men are more interested in a good deal than women and older savers are more cautious than the young. But even those who are driven by rates should still check that their institution is covered by the FSCS so their money is safe," said Mark Neale, chief executive of the FSCS.

People still looking to invest their 2010/11 Isa allowance only have until April 5th at the latest before they lose it.

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2011-03-28 13:10:36 © Moneyextra.com