Post Office Online Saver account offers 2.95%

The Post Office is issuing a new Online Saver account - Online Saver Issue 7. The account offers 2.95% AER and is available immediately.

The new rate includes a fixed bonus of 1.30% for the first 12 months and savers can choose between monthly and annual interest payments.

Online savers will be able to set up their account with as little as £1 and can make unlimited withdrawals with no penalties or notice periods. They will also be able to access their money 24 hours a day, 365 days a year.

Henk Van Hulle, Head of Savings at Post Office, said: "We are committed to providing a variety of products from short-term savings to long-term investment products. We are pleased to offer a new online savings rate which keeps us at the top of market and offers savers flexibility and reassurance of unlimited access to their money with no penalties for doing so."

Savers can apply online at postoffice.co.uk.  The online application takes less than 10 minutes to complete, with the majority of accounts opened on the spot.