Post Office reveals new bond linked to inflation

Thursday, 19 January 2012 10:31

The Post Office has announced details of its new Inflation Linked Bond that is designed to provide maximum returns for savers.

Its fourth issue will be available from today (January 19th 2012) until March 29th and can be applied for online or through the post, although the offer many end sooner if demand is high.

Customers can choose between a three-year term with a Retail Price Index (RPI) inflation rate plus interest of 0.24 per cent AER, or a five-year term with an RPI inflation rate plus 0.49 per cent AER.

Both can be opened with £500, have fixed interest each year and pay out upon maturity.

The Post Office's Richard Norman said: "The fourth issue of our popular Inflation Linked Bond means that people have the opportunity to save, safe in the knowledge their money is protected against the ravaging effects of inflation."

In 2011, the Post Office won Best High Street Savings Provider at the Consumer Moneyfacts Awards and Best Savings Account at the What Investment Readership Awards.

Compare savings bonds to find the rates and features you need

Follow Myfinances.co.uk on Twitter: @news_myfinances

• Tags:
• bonds
,
• fixed rate bonds
,
• post office
,
• product news
,
• savings