Post Office launches Premier Cash ISA

The Post Office has announced the launch of its new Premier Cash ISA offering 3.01% tax-free/AER variable. This will be available to customers online from Friday 6 April and in branch and by phone from Saturday 7 April.

Customers can save from as little as £100 up to £5,640 this tax year and can consolidate all their tax-free savings in one high interest account by transferring-in cash ISAs held with other providers.

The Premier Cash ISA interest rate includes an extra long introductory bonus of 1.26% tax-free/AER fixed for 18 months from the date of account opening.  The account is also backed by Post Office's unique Savings Promise: Until at least 1st January 2013 if the Bank of England Base Rate changes, within 30 days, Post Office will change the underlying rate on the account by the same percentage.

Additional Premier Cash ISA highlights include:

2 free withdrawals each tax year.  If a third withdrawal is required in a tax year savers can close the account or transfer to another provider.
Interest paid annually in March
Customers can make deposits in-branch, by phone or post
Customers can make withdrawals by phone or post

Richard Norman, Director of Savings and Investments for Post Office, said: "Our new Premier Cash ISA offers excellent returns for savers whether they wish to take advantage of their tax-free cash ISA allowance this year or consolidate their existing cash ISAs into one high interest account."

"The average easy access cash ISA rate in 2011 was 0.53% earning savers just £53 on each 10,000 saved. Post Office's Premier Cash ISA will offer 3.01%, earning savers £301 per £10,000 - that's £248 more than the average cash ISA."