Post Office Money® Launches Innovative Online ISA
24th February 2015
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.
*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.
