Post Office has announced that it will be increasing the interest rate on its savings account.
The financial services provider will raise the rate on its Instant Saver account to 5.25 per cent - reflecting the Bank of England's decision to lift the base rate by 0.25 per cent.
However, the savings boost will not be passed on to customers immediately, but will become available on December 6th 2006.
Richard Norman, head of savings, said: "The Post Office is committed to offering great customer value.
"That's why we guarantee to raise rates on the Instant Saver account in line with any increases in the Bank of England base rate until January 2008."
The Post Office savings account allows customers to make six withdrawals each year without penalty, charging a fee of £1 for any additional withdrawals made.
Customers can make withdrawals at branches and ATMs , while the savings account can also be accessed online or via a telephone.
Trevor Williams, UK chief economist at Lloyds TSB, recently predicted that the base rate rise would lead to an increase in savings .
Post Office boosts savings rate
Post Office boosts savings rate
Fri, 10 Nov 2006
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