The Post Office has introduced an ISA account whereby customers can spread their savings across variable and fixed rates. Savers will therefore be able to get the best out of the multiple deals that are offered by the Post Office.
This deal should be particularly attractive due to the upcoming rise in ISA allowance to £15,240 set to come in on April 6th 2015 for the new tax year. Furthermore, the Post Office is offering some of the most competitive rates for ISA accounts on the market.
In a statement made by the Post Office it was explained that the introduction of the new account was in order to ìaddress the frustration of customers at being restricted in only being able to open one cash ISA per tax year.î
The head of savings and investments with Post Office Money, Henk Van Hulle, stated: ìNo customer will now lose out on their annual ISA allowance when choosing a fixed-rate cash ISA over a variable-rate cash ISA. They can benefit from both.î
Now a saver will be able to split an ISA allowance amounting to a total of £15,000 by putting, for example, £9000 in the Post Officeís three-year fixed-rate savings account which pays out 2.1% interest, but still have £6000 in the lower paying 1.5% easy-access account for when they need emergency money. Thus they can have that security of knowing some money is immediately available without entirely missing out on the higher interest in fixed-rate accounts.
This is not an unprecedented product as both Newcastle Building Society and Nationwide have offered relatively similar schemes. In fact, there is a ìMaximISAî facility at Newcastle Building Society which allows their clients to distribute their ISA allowance between numerous cash ISA accounts for each tax year.
Mr. Van Hulle went on to state that ìThe new online ISA reinforces our commitment to making saving as easy and beneficial as possible for our customers. Being able to manage multiple products online gives customers flexibility and control over their money, while also giving them access to a range of competitive products.î
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