I have always had a saving account with the Postoffice as few years ago they use to have a really good interest rate. The saving account I was with the post office was closing that account down. So I opened a new one it is now rubbish. Basically no interest. I got a card with it but can''t use the card in a cash machine I have to go into a post office to use my card. Wouldn''t recommend it to anyone
absolute rubbish,0.1% after signing up for 5%. then been trying for 3 months to get my money out,first at counter at post office, told i could not remove it there. had to phone and then write still nothing, they throw every excuse not to give it to you. DO NOT PUT ANY MONEY INTO THIS ACCOUNT ITS A RIP OFF !
Post Office Instant Saver
The post office instant saver is a savings account offered to the public by the post office. It is backed by the Bank of Ireland and proved to be a very popular account up until the end of 2008.
The account was released in 2005-2006 boasting a massive interest rate of 6.5% as well as having easy access to your money. Easy access meant you could have up to 6 withdrawals a year for free, then after that they would only cost you £1 each. There was no punishment to your interest rate if you withdrew any money which I thought was fantastic. As being punished to get hold of your own money is a bit ridiculous. The account needs to be opened with a minimum of £500 because of the huge interest rate and there is no monthly minimum pay ins or fees.
When I saw the leaflet for the instant saver I was intrigued and wanted to swap instantly as I had a very poor Halifax account with a really terrible interest rate. So I went down to the Halifax and closed down the lousy savings account I had with them, and then took all of the money across to the post office. I filled out the application form there and then and sent it off to be processed. A word of advice however, if you use the same method, you MUST keep the receipt that they will give you over the counter as if something ever went wrong, your £500+ could go missing and you'll need that receipt to get it back.
Within two weeks all of the documentation came, the savings card, paying in book, cheque book and also some introductory booklets. You also get two pins, one for your card like a regular chip and pin, and one for security. Look after them both with your life, as you need them both when you want to withdraw any money or close the account and get all of your money out.
I was very happy with the account up until the credit crunch hit and it hit the instant saver like a truck. I know all of the bank accounts were hit pretty hard but the instant saver was probably one of the worst. The rate went on a very quick downhill slide, losing interest almost every week. It started at a whopping 6.5%, but by February 2009 the rate had dropped to a measly 2.25%. Wait, I hear you say 'That's not so bad during a recession don't you know!' and yes there is more bad news to follow. That 2.25% includes a 12 month 1.5% introductory bonus, so if you've held the account longer than 12 months then your total interest rate is a painful 0.75%. Yes, not even ONE percent for an entire year, but hold on, it STILL gets worse. The final nail in the coffin is handed to the jolly taxman who will still have his cut of your 0.75%.
Personally, I think this account used to be fantastic and very unique but now it's practically useless, especially if you've been a customer over 12 months. If you still use the instant saver for a value between £500-£3,600 then my advice to you would be to stick it into a cash ISA with a fixed rate of interest. Most of them are currently offering over 0.75% and the rate won't plummet if it's fixed. It gets you a better rate and also tells the tax man where to go.
Depositing or withdrawing money made easy.