Post Office launches best buy savings accounts
The Post Office has launched two new issues of its market-leading online savings bond and easy access savings account.
Its Online Saver issue 4 pays 3.01%, including a one-year bonus of 1.36%. The account can be opened with as little as £1 and it allows unlimited withdrawals with no penalties.
The fifth issue of the Post Office's online bond promises savers 3.41% interest if they tie up their money for one year, 3.96% for two years or 4.21% for three years. All of the rates are fixed for the whole terms and require minimum deposits of £500.
Withdrawals aren't permitted within the fixed term although the bonds can be closed early and a breakage fee paid instead.
With both the easy access and fixed-rate bonds, savers can choose to be paid interest on a monthly instead of annual basis.
Post Office director of savings Richard Norman says the Post Office aims to offer its customers "consistently competitive rates of return" as well as a "safe home" for their money.
He adds: "Both accounts offer easy online management combined with some of the best rates in the market."
Savers can apply online for the accounts with immediate effect.
It pays an average rate of 4.59% over the whole term, which can be broken down as follows: 3.1% after the first year, 4.25% after two years, 4.6% after three and 5.24% and 5.75% after four and five years respectively.
An increase in the general level of prices that persists over a period of time. The inflation rate is a measure of the average change over a period, usually 12 months. If inflation is up 4%, this means the price of products and services is 4% higher than a year earlier, requiring we spend and extra 4% to buy the same things we bought 12 months ago and that any savings and investments must generate 4% (after any taxes) to keep pace with inflation. Since 2003, the Bank of England has used the consumer prices index (CPI) as its official measure of inflation (see also retail prices index).