Saver of the week: Post Office Online Saver

The Post Office has launched a new issue of its market-leading online savings account, which is paying a competitive 3.17%.

The instant-access account is only rivalled in interest by a similar offering from BM Savings, which pays 3.2%, but this requires a £50,000 deposit to open the account, which won't be an option for most people.

The Post Office Online Saver account, however, can be opened with just £1.

Great rate of return

"Not only will savers benefit from a great rate of return, they will have the flexibility and reassurance of unlimited access to their money with no penalties for doing so," says Richard Norman, Post Office director of savings.

However, it's not all good news as there is a bonus rate of 1.52% attached to the account for the first 12 months.

Although this is quite common with short-term accounts, it means you'll have to move your money at this point to make sure you continue to get a decent interest rate.

Interest can be paid monthly or yearly, and more information can be found at

Your Comments

According to the Post Office website this issue (No:5) is closed!

Just as well!  No matter what the interest rate the Post Office are offering, don't be tempted.  Their incompetence is stress inducing and their ability to comprehend is beyond words.  I am currently awaiting their response to a 4 page letter asking for an explanation as to their 'systems' and why it took 3 weeks to get my money transferred to my nomiated bank.

Having been trying for 2 days to get money out, which is needed urgnely, it's clear they have serious systems issues.  Their "customer service" have no information other than "it is being worked on, and will be fixed as soon as possible" with no other information on how long "as soon as possible" might be.  There is no other way to get my money out.  Total shambles.

You only really make real interest when you COMPOUND it, these rates which are mostly bonus are usless.

I just made a transfer from my new PO online saver to my bank account, so the above comments worried me. I checked and it's gone through fine in less than 2 working days. Whew!
And yes - this account is no longer available, sadly.
I also have to say I'm not keen on their online interface. I hope I don't have to use it very often.