The Post Office has launched an instant access saving account paying 4.75 per cent, with a guarantee of staying within one percentage point of the base rate of interest.

The Instant Saver also offers six free withdrawals a year, via branches, ATMs, online or over the telephone, with a flat rate of £1 for every withdrawal after that.

As well as the reasonable savings rate, the ease of access through the Post Office's 14,500 branches will make the product one of the best savings accounts for convenience.

Savers must maintain their balances over the £500 minimum deposit to qualify for the rate, however.

There's more than £450 billion sitting in bank and building society accounts which are neither as competitive or convenient," said Alan Cook of the Post Office.

Moving that money to the Post Office would give customers a £9 billion payout in the first year - and make those savings more, not less, accessible.

"It's time the savings market stopped being dictated to by organisations that pay low rates, restrict access and convenience and try to confuse us all with complex interest rate structures that hide the true costs of accessing our own savings," he added.

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