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First class improvements at Post Office

First class improvements at Post Office

Category: Savings

Updated: 18/12/2017
First Published: 04/07/2011

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 It is now over 6 months old so the content may be out of date.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 given the savings market a shot in the arm by improving a number of its popular savings accounts.

  • The one year Online Bond Issue 5 pays 3.41% on maturity (3.36% monthly).
  • The two year Online Bond Issue 5 pays 3.96% yearly (3.89% monthly).
  • The three year Online Bond Issue 5 pays 4.21% yearly (4.13% monthly).

All three bonds are operated online and require a minimum investment of £500.
Earlier access is subject to closure only and incurs a fee. Additions are not permitted. The accounts are run by Bank of Ireland UK.

This review of its online fixed bonds by the Post Office sees rates rise over all terms, thus improving their positions in the market.

With rates ranging from 3.41% for one year to 4.21% for three years all three options now sit within the top six for their respective terms.

The flexibility of early closure is a plus, although this does incur an interest penalty.

In addition, the new issue of its Online Saver has benefited from an increase in its bonus. A minimum investment of £1 now pays a rate of 3.01%, including a 1.36% (previously 1.20%) bonus for 12 months. Monthly options have also increased.

All of the Post Office's new accounts have been awarded four out of five Moneyfacts stars.

Find the best savings rates for you - Compare savings accounts

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 Any products featured may be withdrawn by their provider or changed at any time.