Post Office launches new issue of Growth Bond

The Post Office has launched a new issue of its popular Growth Bond, with fixed rates of up to 4.05% gross/AER fixed, including a Best Buy rate for the one year term. The new rates are available to customers from Wednesday 25 May.

The new rates and terms are:
1-year - 3.35% gross/AER
2-year - 3.80% gross/AER
3-year - 4.05% gross/AER

Interest paid annually

Post Office Director of Savings Richard Norman said: "The Growth Bond offers a guaranteed fixed return for savers, and is ideal for those who want to put money aside knowing they will receive a competitive return at the end of the term. By increasing rates across the Growth Bond range the Post Office is demonstrating its commitment to offering a wide range of competitive products for savers."

Growth Bonds can be opened with a single deposit of a minimum of £500 and are available in-branch or by calling 0800 169 7500.

The Post Office was recently awarded Best High Street Savings Provider in the Moneyfacts Consumer Awards 2011, Best Fixed Rate Bond Provider in the 2011 Moneynet Awards. It was also awarded Best Fixed Rate Savings Provider in the 2010 Moneyfacts Awards.

All savings deposits held with the Post Office are protected under the UK Financial Services Compensation Scheme (FSCS), which is authorised and regulated by the Financial Services Authority (FSA) and provides cover up to £85,000 per investor.

For more information, postoffice.co.uk.