Post Office Growth Bond maturity top-up warning

Sceptic001

The PO is offering a 3.41% AER one-year deal to maturing one-year bond holders, which is fair enough.

They are also offering a top-up facility, which may seem tempting with the recent increase in the FSCS limit. But beware that any top-up cash will be held in an account paying just 0.1% for several weeks before being added to your maturing bond on its anniversary date. This detail is hidden away in the small print in the accompanying leaflet, considerably reducing the actual AER on the new money.

So you would be better off opening a brand new PO one-year bond (also paying 3.41%), or indeed you can do slightly better elsewhere (eg. N&P, 3.55%).

le_loup

Or do the renewal and top-up later.

Sceptic001

No, that won't work.

"Offer" expires 31/7/11
Maturity/start date 9/9/11

le_loup

Wow! That's realy mean!