Post Office boosts interest rates on Reward Saver and Growth Bond

News - Savings

Written by Ray Clancy

Tuesday, 09 November 2010 09:35

The Post Office® has increased the interest rates for its Reward Saver account to 2.75% AER* variable, making it a Best Buy. This rate includes a 1.00% AER bonus for the first 12 months.

The Reward Saver reflects the need for greater flexibility within savings accounts by offering savers two withdrawal options, depending on how quickly they want to access their money - immediately with the loss of the 30 days gross interest on the amount withdrawn, or free when 30 days notice is provided.

The Post Office® has also increased rates across its one year, two year and three year Growth Bonds, making them all best buys, available with immediate effect.

The new rates and terms of the Growth Bonds are:

1-year - 2.90% gross/AER*

2-year - 3.65% gross/AER*

3-year - 4.00% gross/AER*

The Growth Bond offers savers, who do not need access to their money for a fixed term, highly competitive savings rates at a time when base rates remain low.

These are the latest in a series of interest rate increases across the Post Office's savings range, reflecting its commitment to offering a wide range of competitive products for savers. The Online Saver and Online Bond rates were increased to 2.90% AER*, and 3.00% AER* respectively last month.

Since July the Post Office has launched three new savings products as part of plans to expand its savings range and increase its overall financial services proposition. The range includes a selection of branch and online based products with market leading rates and long term value, offering even greater choice for customers and a real alternative to high street banks.

Post Office Director of Savings and Investments, Richard Norman, said: "These further increases to the rates on our Reward Saver and Growth Bond, which follow rises on our Online Saver and Online Bond rates just last month, prove we are dedicated to giving our customers the best possible value as well as great choice and flexibility with their savings. The Reward Saver and Growth Bond have both proved extremely popular and these even more competitive rates will help more people make their money work harder for them."

Product details:

Post Office Reward Saver:

2.75% gross/AER* variable

The reassurance that you can access your savings whenever you need to, subject to the loss of 30 days interest on the amount withdrawn
Free withdrawals available subject to the provision of 30 days notice
A choice of monthly or annual interest
Rate includes fixed bonus guaranteed for the first 12 months.