Post Office launch new savings account, growth fund and ISA

The Post Office has launched a new savings account and a new ISA available from today.

Its new Online Saver account offers a rate of 2.35 per cent which includes a bonus of 1.65 per cent for the first 12 months. Savers can choose to receive interest every month or annually.

The account can be opened with as little as £1 and savers can make unlimited withdrawals with no penalties or notice periods.

Henk Van Hulle, Head of Savings at Post Office, said: "In the current climate we are pleased to offer an online savings rate with a good return as well as an attractive bonus. Savers also benefit from the flexibility and reassurance of unlimited access to their money with no penalties for doing so."

In addition, the Post Office has announced new rates for its growth bond and fixed rate cash ISA.

The rates are available over one, two or three year terms and offer rates up to 3.25 per cent gross/AER for both products over a three-year term. The two products are amongst the Post Office’s most popular.

The new rates for the Post Office’s Growth fund are for one year, 2.95 per cent, for two years, 3.05 per cent and for three years, 3.25 per cent.

For the fixed rate cash ISA the rates are for the one year term, 2.80 per cent. For two years 3.00 per cent and for the three-year term the rate is 3.25 per cent.

Henk Van Hulle, Head of Savings at Post Office, said: "We know that many savers are feeling the pinch as the low base rate continues to affect returns on savings. The launch of new rates on two popular savings products demonstrates our commitment to offering savers a range of products with the best returns possible.

“The Growth Bond and the Fixed Rate Cash ISA offer a guaranteed fixed return for savers, and are ideal for those who want to put money aside knowing they will receive an attractive return at the end of the term."