Following the recent interest rate decision, the Post Office has confirmed that it will be increasing the savings rate offered by its Instant Saver account.
In a move that echoes the decision made yesterday by the Bank of England, all new and existing customers with the savings account will see interest increase from 5.25 per cent to 5.5 per cent.
The move, scheduled to take effect on February 7th 2007, will be welcomed by those people with long term savings who need to start saving money for a major purchase such as a new car.
Richard Norman, head of savings at the Post Office, explained that the financial services provider was aiming to fulfil a pledge previously made to its banking customers.
"With interest rates increasing three times in the past six months, Post Office Instant Saver customers have benefited each time from our commitment to match Bank of England base rate changes until January 2008," he said.
The recent base rate rise came as a surprise to many banking analysts.
In a recent survey of economists by Reuters, two per cent of experts questioned had predicted the rate rise beforehand.
Post Office boosts savings rate
Post Office boosts savings rate
Fri, 12 Jan 2007
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