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Post Office improves bond and ISA rates

Post Office improves bond and ISA rates

Category: Savings

Updated: 01/08/2011
First Published: 22/07/2011

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 It is now over 6 months old so the content may be out of date.

Post Office has reviewed the rates it pays on its Fixed Rate ISAs and Growth Bonds to positive effect.

Rates have been improved over all terms, so that the Growth Bonds now pay the same competitive rates as the online bonds.

A rate of 3.41% over one year, 3.96% over two years and 4.21% over three years leaves all the bonds amongst the market leaders in their fields.

The two year fixed rate ISA has seen the biggest rise, moving from 3.45% to a market leading 3.75%.

At the same time, both the one and three year ISAs, paying 3.20% and 4.00% respectively, are amongst some of the best accounts for their respective terms.

The fact that transfers in are permitted will add to their appeal, as savers look to maximise their tax free returns.

Early closure of the bonds is subject to a fee, while for the ISAs, early closure or transferring out is at a cost of 90 days' interest.

Four out of five Moneyfacts stars are well deserved.

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 Any products featured may be withdrawn by their provider or changed at any time.