The Post Office has officially launched a new series of market-leading Online Bonds today (June 25th). Customers can access the bonds immediately and there are three new rates that are very competitive.
There are Best Buy rates for the one and two year bonds, with 1.99 per cent and 2.10 per cent AER (Annual Equivalent Rate; what interest a saver would receive if the interest was paid and compounded each year) respectively. The third product is a three-year bond that offers 2.20 per cent AER. All the bonds have a minimum investment of £500, meaning that they are very accessible for savers who may not have enough stored away just yet.
The interest rates monthly for the one, two and three year terms are 1.97 per cent, 2.08 per cent and 2.17 per cent respectively. The maximum deposit for the bonds are £2 million, and no additional deposits can be made in the fixed term. Similarly, no withdrawals can be made during the fixed term. Bonds can be closed, but only in specific circumstances, and this may even result in a breakage fee.
Post Office Head of Savings and Investments Henk Van Hulle said: "The current environment is tough for savers but the new issue of Post Office Online Bonds, with multiple terms, offers a guaranteed return at competitive rates. This is ideal for people who have varying needs and do not require immediate access to their savings. We are always looking for ways to offer customers more choice and flexibility whilst offering a competitive rate. Opening a new Online Bond is a great way of ensuring you are making the most of your savings."
The Post Office has won a series of awards for it's savings products such as Best Fixed Rate Provider 2012 by Moneyfacts and Trusted Provider by Moneywise 2012.
Twitter: My Finances
Join the conversation at #news_myfinances