Post Office launches new issues of fixed rate savings accounts

The Post Office has launched new issues of its Growth Bond and Fixed Rate Cash ISA - two of its most popular savings accounts. The accounts feature market leading rates and are available to customers immediately.

Both the Growth Bond and Fixed Rate ISA offer Best Buy rates for one, two and three year terms, with rates up to 4.21% gross/AER for the three year Growth Bond, and up to 4.00%tax-free/AER for the three Year Fixed Rate Cash ISA.

The new rates and terms are:

Growth Bond Issue 15:

One year - 3.41% gross/AER
Two year - 3.96% gross/AER
Three year - 4.21% gross/AER

Fixed Rate Cash ISA Issue 6:

One year - 3.20% tax-free/AER fixed
Two year - 3.75% tax-free/AER fixed
Three year - 4.00% tax-free/AER fixed

Post Office Director of Savings Richard Norman said: "We know that many savers are feeling hard done by due to the low base rate resulting in lower returns on their savings. That's why we're always looking for ways to improve our savings offer.  These new issues of our popular fixed rate savings accounts demonstrate our ongoing commitment to offering savers the best returns possible."

Both products can be opened with a minimum deposit of £500. Growth Bonds can be opened via telephone or in Post Office branches, and the Fixed Rate Cash ISA can be opened in branch, by phone or by returning the application form which can be found online at postoffice.co.uk/savings.

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, and Best Savings Account for Consistency of Rates in the 2011 Moneywise Awards.