Base Rate held but savers still to benefit from previous rate rises

As the Bank of England base rate stays at 5.5 per cent today, the Post Office reveals it is the only major high-street savings provider in the UK to have passed on every interest rate rise in full to all of its variable rate customers in the last year.

Last week, on Monday 4 June, Post Office customers saw their Instant Saver interest rate rise to 5.75 per cent. This followed the 0.25 per cent base rate rise in May.

And Instant Saver customers will benefit for even longer by the Post Office’s promise to pass on base rate rises in full until January 2010. This makes Post Office Instant Saver the UK’s best instant access savings account.

Post Office head of savings Richard Norman said: “Banks and building societies are quick to raise mortgage rates in line with base rate increases, but less inclined to pass on the benefits to their savings customers. There have been four base rate rises in the last year and the majority of savers have missed out on the full benefit of these.

“Although the Bank of England decided hold rates today, further rate rises are expected. To make the most of their money, savers need to ensure they check which accounts will consistently pass on rate rises, and switch.”

Post Office Instant Saver also guarantees to remain within 1.0% of the Bank of England base rate for the life of the account and offers six free withdrawals a year with a flat fee of just £1 for future withdrawals.

Instant Saver is available at all of the UK’s 14,000 Post Office branches, by telephone and online. Withdrawals can be made both at branches and ATMs, offering unrivalled choice and convenience.