05-07-2010
The Post Office today announced the launch of a new Reward Saver account, offering a competitive 2.5% AER* variable, available to customers from Monday 5 July.
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.
Withdrawals are completely free with 30 days’ notice, while those needing their money sooner can request a no-notice withdrawal for which they will only be charged 30 days’ interest on the amount they withdraw. This means they can still earn interest on the rest of their savings. And unlike many other accounts on the market, there is no limit to the number of withdrawals made per year.
Like the rest of the Post Office’s savings range**, the Reward Saver will be accessible to ALL savers, who can choose whether they want to save online at www.postoffice.co.uk, by telephone on 0800 169 7500 or in one of Post Office’s 12,000 local branches.
Post Office Director of Savings and Investments, Richard Norman, said: "The Reward Saver gives customers the best of both worlds. Those who don’t want to touch their money can benefit from a good interest rate, while those who may need emergency access to their cash can have this without paying a heavy premium - and there is no limit of number of withdrawals too. Savers get even more flexibility with the option to have their interest paid monthly or yearly, and all applicants can benefit whether they are investing £500 or £2 million.
"The launch of the Reward Saver shows the Post Office’s commitment to delivering products that are consistently competitive, but flexible enough to offer people a variety of ways to make the most out of their money. We have recently expanded our mortgage range, and this new addition to our savings family is another step forward in increasing our overall financial services proposition and giving people a serious alternative to high street banks."
The 2.5% AER rate includes a 1% bonus guaranteed for the first 12 months and the Post Office offers a lifetime guarantee to customers that the Reward Saver will never be more than 1% below the Bank of England Base Rate for as long as customers hold the account. Savers have the flexibility to make ad-hoc or regular deposits into their account, both in-branch, online and via the telephone.
To find out more about the Reward Saver or any other Post Office savings product, log onto www.postoffice.co.uk/savings, call 0800 169 7500 begin_of_the_skype_highlighting 0800 169 7500 end_of_the_skype_highlighting or visit one of 12,000 local branches - of which 90 per cent of people live within one mile.
*AER stands for Annual Equivalent Rate and illustrates what interest a saver would receive if the interest was paid and compounded each year. Rate includes a 1% fixed bonus for the first 12 months from account opening.
**Post Office Savings range includes:
Instant Saver
Rate of 2.10% Gross/AER variable
- Instant access online by phone, ATM, post or at your local Post Office
- 6 free withdrawals per year3and only £1 per withdrawal thereafter
- Rate includes 2% gross introductory bonus for 12 months from account opening
Cash ISA
2.25% AER variable
- Deposit up to £5,100 a year tax-free in a Post Office Cash ISA
- Ability to transfer funds from an existing cash ISA to your Post Office Cash ISA
- Investment ISA also available
- Rate includes a 2% bonus on all deposits made in the current tax year for 12 months from the first deposit
Fixed rate Cash ISA
Guaranteed rate of 3% AER
- 1 year fixed term
- Guaranteed fixed rate of 3% AER with a tax-free return
- Minimum deposit of £500 and a maximum of £5,100
- Open with a lump sum deposit or a transfer of a cash ISA held with another provider
- Withdrawals not permitted during the fixed term. Early closure subject to a Breakage Charge
Growth Bonds
Guaranteed fixed rates of interest - up to 4.10% gross/AER
- Minimum investment £500
- Maximum investment £1,000,000
- Option to invest money for 1, 2 or 3 years
- Growth Bond Issue 12 is available for a limited term, apply today