Post Office savings account offers dual investment deal

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Post Office savings account offers dual investment deal

Tue 22nd Apr 2008

The Post Office has launched a new Five-Year Saver, which features a dual investment system.

Customers singing up to the deal will have half their deposit in an account which pays 5.5 per cent gross/AER per annum for the five-year fixed-term period.

Meanwhile, the other half of their money will be invested and customers a promised a 50 per cent return on any increase in the FTSE 100 Index over the five-year period.

In addition, their original deposits are guaranteed should the Index fall.

Richard Norman, director of savings at investments at the Post Office, noted that the current volatility of the stock market may make some people "wary" of investing their savings in direct investments.

"Our five year savings bond provides savers with the security they need now but still gives them the opportunity to make good returns in the future," he said.

Yesterday Abbey launched a savings account with a rate of 9.1 per cent, which is only available to customers depositing an equal amount or more into one of the bank's investment products.

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