Post Office Investment account

shaz77_2

I have about £2000 in the post office Investment account, and the interest rates are around 3%. I feel my money is wasted in this account, are there any other accounts available that would do better with my investment. I have also exhausted the £3000 limit the the mini cash ISA account.

Thanks

tom188

Dozens.

IceSave, ICICI, AL, Birmingham Midshires.... are the top payers.

Read the articles on Savings and visit https://www.moneyfacts.co.uk or https://www.moneysupermarket.com and do a search to see the best buys.

Alternatively read some recent posts because there are several posts the same as this a day.

When youve had time to look at the various options available to you come back and ask specific questions.

dunstonh

inflation is running at 3.9%. So, anything less than that and your money is going down in real terms.

moonrakerz

The Post office is paying 5.25% on its Instant Saver and they were quick putting it UP last time interest rates went up !

One or two conditions on it, but worth a look.

http://www.postoffice.co.uk/portal/po/jump1?catId=19300232&mediaId=23200510

tom188

the OP is talking about the national savings investment account.

Prudent

That rate is very poor now. I remember having one of these accounts in the late 1980's. It was paying a whopping 12%!

Heinz

moonrakerz wrote:

The Post office is paying 5.25% on its Instant Saver and they were quick putting it UP last time interest rates went up !

One or two conditions on it, but worth a look.

We guarantee to match any increase to the Bank of England Base Rate until January 2008

So it should have gone up to 5.5% last Thursday (but the website shows it hasn't yet).

Bear in mind too:

Rate includes 1% gross introductory bonus for 12 months from account opening on balances of £500 or more. Introductory bonus available for a limited period.

So, after 12 months, it's easily beaten.

shaz77_2

Some good feedback.

Moonrakerz - I checked out that link, there doesnt seem to be many drawbacks to that account I wonder why the interest rate is so much better than the investment accounts rate. Incidentally is the 5.25% gross or net, if it is gross what is the net rate?

Tom I checked out your link and I came across the following savings account
do you know why the interest is so good at 12% and what is the net figure? Are there any significant drawbacks to this account?

Thanks again.
http://www.alliance-leicester.co.uk/savings/index.asp?page=prem-regular-saver&ct=savingshome

tom188

shaz77 wrote:

Some good feedback.

Moonrakerz - I checked out that link, there doesnt seem to be many drawbacks to that account I wonder why the interest rate is so much better than the investment accounts rate. Incidentally is the 5.25% gross or net, if it is gross what is the net rate?

Tom I checked out your link and I came across the following savings account
do you know why the interest is so good at 12% and what is the net figure? Are there any significant drawbacks to this account?

Thanks again.
http://www.alliance-leicester.co.uk/savings/index.asp?page=prem-regular-saver&ct=savingshome

Its a regular saver - you pay in a set amount per month and has lots of other restrictions - ie you need a current a/c with them and pay into that as well.

I suggest you look at easy access accounts - ICICI, IceSave, Birmingham Midshires. See http://www.moneyfacts.co.uk/savings/bestbuys/savings_internet.aspx

Heinz

shaz77 wrote:

Some good feedback.

Moonrakerz - I checked out that link, there doesnt seem to be many drawbacks to that account I wonder why the interest rate is so much better than the investment accounts rate. Incidentally is the 5.25% gross or net, if it is gross what is the net rate?

Tom I checked out your link and I came across the following savings account
do you know why the interest is so good at 12% and what is the net figure? Are there any significant drawbacks to this account?

Thanks again.
http://www.alliance-leicester.co.uk/savings/index.asp?page=prem-regular-saver&ct=savingshome

Nett rates are 80% of gross rates.

The A&L Premier Regular Saver A/C has draconian limitations:

Premier Regular Saver with an interest rate of 12.00% gross p.a./ AER is available to customers only at the time of opening a new Premier Current Account.

To be eligible for Premier Regular Saver at a rate of 12.00% gross p.a./AER: applicants must not currently hold any A&L current account, and; applicants must not have held any A&L current account in the three months preceding a new Premier Current Account application.

Minimum monthly payment £10, maximum monthly payment £250, for a maximum of 12 months. Interest is paid on maturity on the anniversary of the first payment due date. AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded each year. Gross is the interest paid before tax.

After 12 months the account will be closed and funds transferred to your Premier Current Account.

moonrakerz

Heinz wrote:

So it should have gone up to 5.5% last Thursday (but the website shows it hasn't yet).

Bear in mind too:So, after 12 months, it's easily beaten.

At least you know the rate WILL go up, there was a report in the papers at the w/e regarding some banks who increased their mortgage rate by 0.3% after the last B of E increase and still haven't increased their savings rate.

Unless you have a fixed term bond you should always look around to see if you can get a better rate. Many of the top rates quoted by banks and building societies include a "bonus" - all you have to do is move the money elsewhere at the end of the bonus period.

I have used a PO Instant Saver since last May and have gained over £1000 interest whilst putting nearly £15000 on an interest free offer on my MBNA card (for doing up another house). Unfortunately I have to pay it off next month !!! Come April, what's left in the PO will find a new home.


One other point. If you open an account with the PO. The website doesn't like Firefox, so you will have to use IE for that !