Friday 12th January 2007
Post Office has increased the interest rate on its savings account to reflect the Bank of Englands decision to raise the base rate to 5.25 per cent.
This is in line with the Post Offices promise that the rates for its Instant Saver savings account will remain within one per cent of the base rate.
Customers holding an Instant Saver account may now benefit from a 5.5 per cent interest rate, up 0.25 per cent since before the base rate change.
Richard Norman, head of savings at Post Office, said: "With interest rates increasing three times in the past six months, Post Office Instant Saver customers have benefited each time from our commitment to match Bank of England base rate changes until January 2008."
Up to six free withdrawals may be made from the account in any 12-month period, while a £1 fee is incurred for any additional money taken out, says the Post Office.
The 5.5 per cent rate is payable to all account holders with a balance of more than £500 and is available to anyone over the age of 11.
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