Post Office launches reward saver account
The Post Office has strengthened its range of savings products with a reward saver account offering 3 per cent interest and a notice period of only 30 days.
If savers make a withdrawal without giving 30 days notice, they will lose 30 days interest on the amount withdrawn.
The interest rate includes a 1.25% bonus for the first year.
Like all Post Office products the account is covered by a ‘savings promise’, which means that any Bank of England base rate changes until January 2013, will be mirrored by the interest on the account.
Customers can access the reward saver account at Post Office branches, by phone or by post.
Post Office Director of Savings and Investments, Richard Norman, said: “The new issue of the Post Office Reward Saver account further demonstrates our dedication to branch savers.
“The best buy rate will help more people make their money work harder for them.”
The account reflects an increasingly competitive savings market.
The latest survey by Moneysupermarket.com suggests that average savings rates for easy access accounts have increased by 0.23 per cent to 2.97 per cent in the last year.
The figures are based on the average interest rate paid by the top five easy access accounts.
ISA rates have also increased, with the average rates paid by a one year fixed rate ISA now 3.17 per cent compared with 2.99 per cent in 2011.
Bonds have followed a similar trend with the average top five rates for one year and two year fixed rate bonds based on £10,000 increasing by 0.46 per cent.
Meanwhile, mortgage and loan rates have fallen over the past year.
Kevin Mountford, head of banking at Moneysupermarket.com , said: “Savers have suffered from a low base rate environment for almost three years so it’s encouraging to see banks and building societies increasing competition to attract savers, offering attractive headline rates compared with a year ago.”
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