Cheshire Building Society upgrades Postal Account

Cheshire Building Society has increased the rate on its recently launched 30 Day Postal Saver Account.

The new variable rate of 3.25% gross p.a./AER including conditional bonus (if interest is paid annually) on a minimum deposit of £1,000 for the first 12 months is being offered - a quarter of a percent higher than when it first launched in October.

The rate applies on the condition that a minimum balance of £1,000 is maintained throughout the first year and no more than four withdrawals are made.  Should the bonus conditions not be met, a fixed rate of 0.10% gross p.a/AER is payable for the lifetime of the account.

After the first year the account reverts to a standard variable rate of 2.25% gross p.a/AER (if interest is paid annually) and unlimited withdrawals can be made. If the balance drops below the £1,000 minimum at any point after opening the account the fixed 0.10% gross p.a/AER rate will apply for the lifetime of the account.

Savers can invest from £1,000 up to £2 million and the minimum withdrawal is £250 by cheque. As with most notice accounts, withdrawals are subject to 30 days written notice or be subjected to 30 days loss of interest.

Alistair Welham, Head of Products and Marketing at the Cheshire said: "The 30 Day Notice Account will appeal to those looking for flexibility and a good return.  Customers with a lump sum to invest for the longer term can take advantage of a great rate without having to tie their money up, giving the combination of access and a good return from a name you can trust."

To apply, customers can download a form from the Cheshire's website thecheshire.co.uk.