Post Office Money has released three new ISAs, all of which have stormed into the top 10 of their respective sectors for their highly competitive terms.
Online ISA - 2 Year Fixed Rate Issue 1 boasts a market-leading rate of 1.95% yearly, allowing it to sit comfortably above its competitors in its sector. The one-year variant (Issue 1) has a rate of 1.55% yearly, enabling it to take a place among the top 10.
Meanwhile, Online ISA – Easy Access Issue 1 has an attractive rate of 1.50% per annum (including a 0.85% bonus for 12 months), which also earns it a place in the Moneyfacts charts.
All accounts must be opened and operated online. A Holding Account will be automatically opened (paying 0.65%), which can be used for transactions. Savers have the option to split their investment between the fixed and variable rate products.
The fixed rate ISAs need a minimum investment of £500. Transfers in of both cash and stocks & shares ISAs are permitted, but further additions are not. Early access is possible, but this will result in closure of the accounts and the loss of 90 days' interest for the one-year ISA and 180 days' interest for the two-year version. Transfers away from these ISAs will incur the same penalties.
The easy access account, meanwhile, requires an initial investment of just £100. Transfers in from existing ISAs are welcomed and further additions can be made at any time. Unlimited withdrawals can be made provided they are of at least £10 and transfers out are penalty-free. Savers should note that all withdrawals must be made via either a nominated account or through the Holding Account.
Post Office Money's latest offerings are sure to make savers sit up and take notice. The two-year fixed rate ISA is particularly competitive, sitting right at the top of its sector and boasting an eye-catching rate. Savers will welcome the option to access funds prior to maturity, although this does incur a hefty penalty, while the ability to spread an investment across this competitive range of savings products adds some novel flexibility.
Moneyfacts rating: Excellent
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.