Post Office Interest Rate 3%

[robert551069]

I do not qualify for ISA's so am investing some spare money with the Post Office @ 3% free of tax. It's better than HSBC, with whom I have banked for 35 years.

[dasherman]

ISA's can be taken out by any UK resident over the age of 16, so can I ask why you think you 'don't qualify.

[bednobs]

marvellous, i'm so glad you told us about your investments.

[buildersmate]

Oh goody, but you seem to have neglected to tell us the details of what the comparative deal was with HSBC. What an oversight, it devalues the whole 'question'.

[factor-fiction]

I think robert may just be letting us know that there is a good deal available which is better than any ISA rates

[Psybbo]

Yes but after tax?

[factor-fiction]

robert is saying the post office one is tax free, so at 3% tax free it seems very competitive - although I don't know whether it involves tying money up for a set period which may not suit a some people.

ISA rates have moved downwards over the last month or so and the best rates have fallen from 3.1% to 2.75% for penalty free access (although some higher rates exist if you are prepared to lock away for a few years).

When robert says he doesn't qualify for ISAs I assume he means he isn't a taxpayer so the benefit is not as great (although he is still eligible), or he has already used up his ISA allowance for this year.

Of course these rates are all pitifully low and unless you have several thousand pounds it's probably not worth chasing the extra 0.5%

[murraymints]

I have ISA fixed for year with po at 3%

[buildersmate]

I couldn't find any evidence that this return actually exists - 2.35% seems to be the best available at the Post Office, whose accounts are run by the Bank of Ireland.

[factor-fiction]

Maybe it's NS&I rather than the post office- although I thought that all their good tax free deals had been ended. The banks etc can get cheaper money now and don't need to offer high rates in order to bring in the money they need.
I'll look on the NS&I site

[murraymints]

builder..I only renewed mine 3 weeks ago .....over the phone was offered 3% to extend fixed year

[gingejbee]

I must say that I was sceptical when I saw 3% tax-free at the Post Office when this was posted.

[factor-fiction]

http://www.nsandi.com/savings-index-linked-savings-certificates
Certainly NS&I have taken all their tax free savings deals off sale in recent weeks

[buildersmate]

Murray - I don't doubt you can still get 3% on an ISA but this 'non question' talks about 3% without it being an ISA.

[murraymints]

builder..don't know about that one !

[buildersmate]

Factor - you can perhaps remember the old days when National Savings were bought over the counter at the PO. Those were the days.

[factor-fiction]

Rates that may have been available 3 weeks ago probably aren't available now for new customers- rates have moved downwards by around 0.3% over the last two weeks.

Rates of 3%+ can only be obtained if you have a high balance and can tie your money up.

The best easy access ISA rate now is only 2.75 or 2.8%.

I can't see any one offering more than 3% in non-ISA accounts unless you tie your money up for several years with Bank of India.

If anyone has any links that suggest 3% is available tax free I'd be happy to be proved wrong

[Old_Geezer]

If 3% is something to be recommended, then no wonder my nose rubs against the ceiling when I try to sleep these days.

[factor-fiction]

Yes I can, buildersmate. Now it not easy to find a post office- but yes it all seems to be done by post/online these days

[robert551069]

When I posted the information about the 3% Post Office interest rate it was available, but I had to wait to invest until I could obtain the money from my HSBC 2.2% account which will not mature until 26/11/12.
In view of the comments from ABers I phoned the P.O just now and, unfortunately, was told that it was no longer available. Sorry for the misinformation.

[boxtops]

Thanks for the correction, robert - always appreciated. I keep an eye on the accounts at the Nationwide, they have just brought out a new Loyalty account for existing customers, but sometimes these offers only apply for a short time. Poor rate, but better than others.