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POST OFFICE MONEY® LAUNCHES INNOVATIVE ONLINE ISA

Press release   •   Feb 16, 2015 12:15 GMT

  • A new flexible cash ISA that allows customers to spread their tax-free savings across variable and fixed rate products in one place online
  • The Online ISA will allow customers to consolidate all their ISAs and spread or split their savings across various rates in one tax-free account
  • First new product launched by Post Office Money as it looks to challenge the savings market

Post Office Money today announces the launch of its new innovative Online ISA, allowing customers the flexibility to save their annual cash ISA allowance across multiple products with variable and fixed rates all in one online account.

The new Online ISA has been created by Post Office Money to address the frustration of customers at being restricted in only being able to open one cash ISA per tax-year. One of the unique features of the Online ISA is the ‘holding account’ allowing customers to consolidate all their ISAs and spread or split their savings across various rates in one tax-free account.

With almost half of all UK adults (45 per cent) planning to save more in 2015 than they did last year*, Post Office Money’s Online ISA has been designed with flexibility in mind, to allow customers to conveniently make additional deposits, transfer in other ISAs and move money easily between Easy Access and Fixed Rate products. This includes the option to transfer and convert existing stocks and share ISAs into your cash ISA account.**

The Online ISA is available to customers to save up to £15k tax-free a year (2014/15) from Monday 16th February 2015. The new Online ISA will launch with some of the most competitively fixed and variable rates currently available.

The available products include:

  • Easy Access Issue 1:
  • o1.50% tax-free/AER* Variable which includes a 0.85% fixed tax-free bonus for the first 12 months
  • Fixed Rate Issue 1:
  • o1 year at 1.55% tax-free/AER* Fixed
  • o2 years at 1.95% tax-free/AER* Fixed
  • Holding Account (set up automatically to hold funds before being placed in products)
  • o0.65% tax-free/AER* Variable

This is the first new product from Post Office Money, which recently launched as part of the business’ ambition to become one of the UK’s leading financial services providers over the next five years.

Henk Van Hulle, Head of Savings and Investments at Post Office Money, said: “The new Online ISA reinforces our commitment to making saving as easy and beneficial as possible for our customers. Being able to manage multiple products online gives customers flexibility and control over their money, while also giving them access to a range of competitive products. In particular, no customers will now lose out on their annual ISA allowance when choosing a fixed rate cash ISA over a variable rate cash ISA, they can benefit from both and keep investing in our Online ISA throughout the year to the £15,000 maximum.

“Whether customers simply want a great fixed or variable rate, the ability to open multiple cash ISA products in the same tax year or the ability to manage their cash ISA savings online or all of the above – the new Post Office Money Online ISA is definitely one to consider.”

The Online ISA compliments the Post Office’s branch based ISA range.

Ends.

Notes to editor:

*Research conducted by Opinium on behalf of Post Office Money between 14th to 17th November 2014. 2,003 online interviews of UK adults over the age of 18.

**Process can take up to 30 days.

Post Office Money cash ISAs are provided by Family Investments. Savings in Post Office Money Cash ISAs are deposited with Bank of Ireland UK.

*AER stands for Annual Equivalent Rate and illustrates what the interest would be if interest was paid and compounded once a year.

Tax-free means the interest paid will be free from UK Income Tax and Capital Gains Tax.

Deposits are protected by the Financial Services Compensation Scheme. Eligible deposits are protected up to the value of £85,000 per depositor, per institution.

The Post Office has a well-established history of winning awards for its popular savings range:

Best Cash ISA Provider - Moneynet Awards 2014

Most consistent Fixed Rate Bond Provider – Moneynet Personal Finance awards 2013

Best Direct Savings Account Provider – Your Money Direct Awards 2013

Best Fixed Rate Provider – 2012 Moneyfacts Awards

Trusted Provider – Moneywise 2012

Best ISA provider for consistency of rates 2012 – Moneywise 2012

Best Fixed Rate Bond Provider – 2012 Moneynet Awards

Best Savings Provider – MoneySupermarket Supers Awards 2011

Best High Street Savings Provider - Consumer Moneyfacts Awards 2011

Best Savings Account for consistency of rates - Moneywise Awards 2011

Best Savings Provider - What Investment Readership Awards 2011

Best Fixed Rate Bond Provider - 2011 Moneynet Awards

Best Fixed Rate Savings Provider - 2010 Moneyfacts Awards

About Post Office Money

Post Office Money, launched in January 2015, brings together all of Post Office’s multi-award winning financial products under one umbrella as it seeks to become one of the leading financial services providers by 2020. Post Office Money will be available at thousands of branches within Post Office’s network, as well as over the phone or online.

Bank of Ireland has supported customers in the UK for many decades and is the exclusive financial services partner to the Post Office Money. Bank of Ireland primarily operates in the UK through its wholly owned and separately incorporated subsidiary Bank of Ireland (UK) plc, which is authorised and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Activities related to the Post Office Money partnership are conducted within this entity and as such, all retail deposits up to £85,000 with Post Office Money are protected under the UK’s Financial Services Compensation Scheme. At 31 December 2013, Bank of Ireland (UK) plc had a loan to deposit ratio of 86% with customer deposits of c. £21 billion utilised to fund customer lending of c. £18 billion (primarily comprising c. £13 billion of UK residential mortgages).

About the Post Office

The Post Office (Post Office Limited) has an unrivalled national network of over 11,500 branches across the UK, more than all the high street banks combined, and sits at the heart of communities in Northern Ireland, Scotland, Wales and England. The Post Office has made a commitment to maintaining its network of branches at its current size and reach. It provides around 170 different products and services spanning financial services including savings, insurance, loans, mortgages and credit cards; Government services; telephony; foreign currency; travel insurance and mail services.

The Post Office serves over 17 million customers a week and a third of small businesses. Some 99.7% of the total population live within three miles of a post office and over 97% live with one mile of a post office. For many rural communities, the post office is the only retail outlet. Post Offices branches remain highly valued and trusted, and are the focal point of many communities. For more information, visit http://www.postoffice.co.uk/.

Please note the Press Office team can only deal with enquiries from the media.  Unfortunately they do not have access to customer information so can not help with customer enquiries.

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