Post Office revamps its saving offerings | Product News - Moneyfacts

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Post Office revamps its saving offerings

Post Office revamps its saving offerings

Category: Savings
Date: 12/09/2014

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Post Office has refreshed its saving bonds portfolio by increasing some rates by up to 0.20%. These offerings have taken the best buy charts by storm, with two products sitting in the top 10.

The basics…

The one-year Growth Bond Issue 23 is now paying a rate of 1.80% a year. Meanwhile, the two and three-year versions pay 2.05% and 2.20% respectively.

The Post Office's online bond, Online Bond Issue 12, has varying terms of one to three years. The one-year version pays an annual rate of 1.81% (a top 10 rate), the two-year pays 2.06% and the three-year has a yearly rate of 2.21%.

Reward Saver Issue 7 has also been updated with a new yearly rate of 1.35%. This includes a 12-month bonus of 0.60%. A monthly version paying 1.34% with a 0.59% bonus is also available.

Online Saver Issue 12 has witnessed rate improvements, too. It now pays a rate of 1.40% per annum, which includes an introductory 12-month bonus of 0.65%. This rate places the account just behind the market-leader. Savers can also choose a monthly option, which now pays 1.39% with a 0.64% bonus for 12 months.

The finer details…

All of the accounts, bar the Online Saver, need a minimum investment of £500. The Online Saver needs only £1.

The online accounts can only be managed over the internet, but the Growth Bond can be opened in branch or by post, and then managed by post. The Reward Saver is managed in branch, by post or over the phone.

The growth and online bonds do not permit withdrawals or further additions, but this is possible with the Online Saver and Reward Saver. The Reward Saver needs 30 days' notice for penalty-free withdrawals, whereas the Online Saver account allows instant access to funds and unlimited withdrawals.

Why we like them…

This extensive review has put two accounts in the Post Office portfolio into the best buy charts. The Online Saver offers the most competitive deal, and its place just behind the market-leader for its term is sure to attract the attention of investors. The deal is sweetened by the facility to make unlimited and immediate withdrawals, which gives this account a great deal of flexibility. However, the competiveness of this account must be re-evaluated in a year's time when the bonus introductory rate expires.

Four Moneyfacts Stars have been awarded.

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.

 

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.

 
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