An online savings account launched by the Post Office could help consumers get the most value from their savings in the current economic climate, thanks to its attractive 2.75 per cent AER rate.
Suited to those willing to operate their account solely via the internet, the Online Saver comes with a guaranteed 12 month bonus of 1.25 per cent.
However, customers may want to review the savings account against others on the market once this introductory offer expires, as the interest rate paid on savings will drop to 1.5 per cent.
Richard Norman, director of savings and Investments at the Post Office, said that the new account "reinforces" the organisation's "commitment to offering competitive rates" and flexible financial products.
"The Online Saver complements our existing range of branch savings accounts and helps to provide greater choice for the growing number of 'online savvy' savers," he added.
"This marks a further step in increasing our financial services proposition and giving people a serious alternative to high street banks."
With the 2.75 per cent rate representing one of the best currently available in the savings market, it is sure to appeal to people looking to get the most from their savings this year.
This is particularly true as it is launched at a time when the government has announced changes to the tax system on savings accounts for young people, which could see them paying a levy on their money from the age of 16.
Most children do not have enough income to pay tax, but from April 6th, children will need to re-register to have interest paid on their accounts without tax.
Teens will need to fill out an R85 form at their bank or building society to avoid paying tax on the interest in the savings accounts if their income does not exceed their personal allowance.
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