Post Office launches new Growth Bond and Fixed Rate Cash ISA

The Post Office has introduced two new savings products: a Growth Bond and Fixed Rate Cash ISA.

‘Growth Bond Issue 11′ is available as a one, two or three year term, with rates of 3.30%, 4.05% and 4.40% gross AER respectively. The minimum opening deposit is £500 (maximum deposit is £1,000,000) and no withdrawals or additional deposits are permitted during the term. Full closure during the fixed term is subject to a breakage charge.

The ‘Fixed Rate Cash ISA Issue 2′ is available on a one year term with a rate of 3% AER. Again, additional deposits are not permitted and the only way to make a withdrawal before the end of the term is to bring about a full closure, subject to a breakage charge equal to 90 days interest.

Post Office Director of Savings and Investments Richard Norman said:

“The current environment is tough for savers, but the new Post Office Growth Bond, which offers a guaranteed return at a competitive rate, is ideal for those who do not need immediate access to their savings. With a minimum investment of only £500, these bonds are ideal for all types of savers looking to take advantage of rates of up to 4.4% AER.”

“With new ISA limits already available to savers over 50 and coming into play for everyone from 6 April 2010, everyone needs to re-evaluate their savings. Whatever your age, opening a new Fixed Rate Cash ISA is a great way of ensuring you are making the most of your tax-free saving.”

To compare savings products, visit http://www.totallymoney.com/banking/.