Friday 4th August 2006
The Post Office has announced it is set to raise the interest rate on its Instant Saver account following the Monetary Policy Committees (MPC) decision to put up the base rate.
The accounts rate of interest will rise from 4.75 per cent to five per cent from August 29th following the committees decision to increase the baseline rate 0.25 per cent to 4.75 per cent.
The account is guaranteed to stay within one per cent of the Bank of Englands rate and offers six free withdrawals each year.
Richard Norman, head of savings at the company, said: "The Post Office is committed to offering customers great value and we want to pass this new rate on to savers as soon as possible so they get the most out of their money."
Many others firms have reacted to the MPCs shock announcement yesterday by increasing rates on a variety of financial products.
Rates on Leeds Building Societys two-year bond scheme have risen, for example, up to 4.75 per cent in the first year and 5.5 per cent in year two.
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