The Post Office has launched an easy-access savings account paying 1.33% AER – the best rate open to all since February.
The new Online Saver is a tempting deal for those on the hunt for the best rate while keeping their cash accessible, but there’s a catch.
The attractive ‘bonus rate’ is only valid for 12 months, after which it drops just 0.25%.
Which? explains what you need to know about the new Post Office deal, how it compares to other savings accounts and where to earn the most interest on your cash.
Is the Post Office Online Saver a good deal?
The Post Office Online Saver pays 1.33% AER and can be opened online with £1. You can choose to have interest paid monthly or annually.
It offers the highest rate open to all on an easy-access account since February earlier this year when the AA offered a rate of 1.32% on its Easy Saver.
However, savers should be aware that this tempting rate is only temporary.
For the first 12 months, you benefit from a 1.08% bonus. After a year, the rate on the account will plunge, with your savings earning just 0.25% AER.
If you want to take advantage of the bonus offer, you need to make sure you set a reminder to move your money to avoid being caught out by this ‘teaser rate’ – or go for an easy-access account that promises longer-term returns.
As an example, the next best easy-access savings account that is open to all pays 1.3% AER and is available from RCI Bank. This rate does not include a bonus, so you can continue to benefit as long as the bank offers the deal.
Best easy-access savings accounts
We’ve picked out the best deals on easy-access accounts and identified which come with or without a temporary bonus using Which? Money Compare.
|Account||Interest Rate AER||Bonus?||Minimum deposit||Interest paid||Notes|
|Post Office Online Saver||1.33%||AER includes a bonus of 1.08% for 12 months||£1||Monthly/annually|
|RCI Freedom Savings Account||1.3%||No||£100||Monthly|
|Coventry Building Society Limited Access Saver||1.3%||AER includes a bonus of 0.3% for 12 months||£1||Monthly||Limited to three penalty-free withdrawals a year|
- Compare the best easy-access accounts on Which? Money Compare.
Where can you earn the most interest on your cash?
With inflation still riding high at 2.4%, it’s important to chase the best rate for your cash to ensure it doesn’t lose value over time.
Easy-access accounts offer you instant access to your cash, but the rates tend to be meagre compared to fixed-rate bonds and even current accounts that pay interest.
Below ,you can see where you can earn the most interest on your cash across a range of different accounts.
|Account||Type of account||Rate AER||Min / max deposit|
|Nationwide FlexDirect||Current account||5%||£1 / £2,500|
|Gatehouse Bank Five-Year Fixed-Term Deposit||Five-year fixed-rate bond||2.68%||£1,000 / £1m|
|United Bank UK Five-Year Fixed-Rate Cash Isa||Five-year fixed-rate cash Isa||2.65%||£2,000 / £1m|
|Gatehouse Bank Three-Year Fixed-Term Deposit||Three-year fixed-rate bond||2.33%||£1,000 / £1m|
|Secure Trust bank Two-year Fixed-Rate Bond||Two-year fixed-rate bond||2.16%||£1,000 / £1m|
|Atom Bank One-Year Fixed Saver||One-year fixed-rate bond||2.05%||£50/ £100,000|
|United Bank UK Three-Year Fixed-Rate Cash Isa||Three-year fixed-rate cash Isa||1.87%||£2,000 / £1m|
|Secure Trust bank 180-Day Notice account||Notice account||1.78%||£1,000 / £1m|
|Al Rayan 24-Month Fixed-Term Deposit Cash Isa||Two-year fixed-rate cash Isa||1.7%||£1,000 / n/a|
|Charter Savings Bank One-Year Fixed-Rate Cash Isa||One-year fixed-rate cash Isa||1.52%||£1,000 / £1.5m|
|Charter Savings Bank 95-Day Notice Cash Isa||Notice cash Isa||1.4%||£1,000 / £1.5m|
|Al Rayan Instant Access Cash Isa||Easy-access cash Isa||1.35%||£50 / n/a|
|Post Office Online Saver||Easy access||1.33% (includes a 1.08% bonus for 12 months)||£1 / £2m|
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