What ISA options do the Post Office offer?
The Post Office currently has three cash ISA’s available, each with different rates of interest and coming with different terms and conditions.
The first is the Post Office Online ISA. As the name suggests, this ISA is managed online giving you access 24/7. The current ISA named Easy Access Issue 8 pays a higher interest for the first 12 months. After this, the rate reverts to a lower standard rate. If you’re interested in this account, you need to remember that this account only allows you to deposit funds once and you’re unable to make withdrawals for any fixed period.
The Premier Cash ISA can be opened with a minimum of £100 or via a transfer from an existing ISA. The ISA does allow two withdrawals per year but once withdrawn, your money will lose the tax advantages of ISAs and cannot be replaced within this ISA year without affecting your annual ISA allowance. Again, the interest is higher for the first 12 months before reverting to a standard lower rate.
If you’re happy to lock in your money for a year, the Post Office offers a Fixed Rate Cash ISA which pays a higher rate of interest. While you can transfer in a balance from an existing ISA, you can only make one deposit and no withdrawals are allowed in the period.