Apr 4 2006
The Post Office has launched a new savings account with a headline rate of 4.75 per cent, available at any of the UK's 14,500 branches.
For a minimum deposit of £500 investors can take advantage of the new Instant Access Saver account which can be accessed online, over the phone, at branches or from ATMs.
A bonus of one per cent is included in the 4.75 per cent interest rate for the first year, then the amount drops to 3.75 per cent but it is guaranteed to remain within one per cent of the Bank of England base rate.
Comparison site uSwitch.com say consumers should be fully aware of the account conditions, including a £1 charge imposed for withdrawals after six have been made in a year.
Nick White, from uSwitch, said: "While this is an attractive rate, and one that should put a lot of the high street banks to shame when compared with the derisory rates they normally offer their savers, when you scratch beneath the surface of this deal it isn't quite as appealing as it might otherwise seem."
Alliance & Leicester, Nationwide and Lloyds TSB offer rates of more than 3.75 per cent on their current accounts and they offer free withdrawals and overdrafts.
He added: "There are better rates available for those savers who have internet access, such as the e-savings account from first direct, paying five per cent AER."
