Post Office launches new cash ISA offering 6.25%

The Post Office has extended its savings range by launching a cash ISA paying a leading rate of 6.25 per cent, available from today.

It is aimed at savers looking for a highly competitive return on their savings and who want to take advantage of their annual tax-free allowance. It guarantees to track changes in the Bank of England base rate until 1st January 2010 and the rate will never be more than 1 per cent below base rate, meaning investors who stay with the Post Office over the long term will not be penalised.

Savers need as little as £1 to open a Post Office Cash ISA, which is available in branch, by post and application. Funds can also be transferred in from any existing ISA.

For those who would like to invest money in a stocks and shares ISA, the Post Office is also offering customers the Post Office Investment ISA, which invests customers' money in the FI Post Office Cautious Managed Investment Fund. The fund aims to provide medium to long-term capital growth by investing in a range of Norwich Union funds. It is available in branch, by post and application forms can be requested by phone or printed off from the Post Office website.

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2008-09-05 00:00:00 © Moneyextra.com