Post Office launches cash ISA

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Post Office launches cash ISA

Thu 4th Sep 2008

A new cash ISA offering 6.25 per cent has been launched by the Post Office.

The new ISA tracks changes in the Bank of England base rate until 2010 and will never be more than one per cent beneath it.

As a result, there are no penalties for investors who stay with it long term.

The minimum investment is £1.

Post Office director of savings Richard Norman said the product allows customers to save in a tax efficient manner.

The new ISA is an addition to the Post Office Investment ISA, which invests money into the FI Post Office Cautious Managed Investment Fund.

This fund invests in a range of Norwich Union funds with the intention of providing medium to long-term capital growth.

At the end of the financial year in April, there is typically an increase of ISA popularity, the Times recently stated.

It reported that investors sold more equity-based funds in July than in every month dating back to October, with the exception of April.

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