Post Office increases Instant Saver bonus rate

The Post Office today announces it is increasing the bonus rate on its Instant Saver account to 1.5 pct with immediate effect.

For a limited period, new customers applying for an Instant Saver account will receive 6 pct AER on balances of more than GBP 500. The introductory bonus is paid on deposits for 12 months from the date the account was opened, after which interest is earned at the standard rate – currently 4.5 pct.

Richard Norman, director of savings at the Post Office®, said: “The savings market has changed dramatically in the last six months and in order for the Post Office® to continue offering great value in an increasingly competitive market, we have decided to increase the bonus rate.

“This promotional offer will be reviewed on a monthly basis, to ensure that it continues to meet our customers’ expectations and keep us in line with the rest of the market.”

Post Office Instant Saver is available at all of the UK’s 14,000 Post Office branches, by telephone and online. Withdrawals can be made over the counter at branches and via 60,000 Link ATMs, offering unrivalled choice and convenience.

It also offer two unique guarantees – to pass on all base rate rises in full until January 2010 and to remain within 1.0 pct of the Bank of England base rate for the life of the account. Savers can make six free withdrawals a year with a flat fee of just £1 for any future withdrawals.