Post Office launches market-leading bond

The Post Office has announced the expansion of its savings range with the launch of a new five-year inflation linked bond offering consumers one of the best savings rates on the market.

According to the Post Office, the inflation linked bond is perfect for savers looking to protect their nest egg from the effects of inflation.

The rate of return is based on the annual Retail Prices Index RPI, plus 1.5 per cent gross per year guaranteed, ensuring its customers' savings are always beating inflation rates.

Post Office director of savings and investments Richard Norman said: "The vast majority of savings accounts on the market do not offer interest rates which beat current levels of inflation."

He added that the market-leading inflation linked bond has been created to meet the long-term needs of savers who are concerned about the eroding effect of inflation.

The Post Office recently launched a two- and three-year bond, available at savings rates of 3.65 and four per cent AER respectively.
 

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2011-02-23 15:44:00 © Moneyextra.com