Post Office Growth Bond Withdrawn - 1, 3 & 5 Year Growth Bonds.

by Peter Wakeford
Posted by Hannah on 8 September 2008
Post Office Growth Bond Withdrawn

The provider has said that the investment product will again be available next month, however.

The Post Office has closed its latest issue of growth bonds, it has been announced.

Issue 6a of the savings products, which sees investors lending the firm money at a guaranteed payback rate, have now joined the Post Office's guaranteed equity bonds in no longer being available for purchase. However, a statement from the provider promised that the bond would soon be back on the market.

"You won't have to wait too long for our next issue, which will be available from Wednesday 1st October 2008," it said.

Growth bonds work by giving the investor a promise that capital invested will increase by a pre-set amount over the investment period.

The Post Office launched a Five Year Saver bond earlier this year, offering 5.5 percent AER over half of investors' cash, with the remainder to have returns linked to the FTSE 100 index.

Meanwhile, the "savings war" between high street financial firms, many of whom are seeking to restore their credit crunch-hit balance sheets through attracting customer deposits, has heated up still further, with news that Alliance & Leicester are bumping up their eSaver's AER to 6.56 percent - an increase of 0.06 percent from before.

For its part, the Post Office has also released a new tax-free Individual Savings Account at a table-topping 6.25 percent - an AER which includes a 1.5 percent bonus for all deposits made between now and next April, the Guardian reports.

The bonds that have been withdrawn are as follows:

  • Post Office 1 Year Growth Bond

  • Post Office 3 Year Growth Bond
  • Post Office 5 Year Growth Bond

We will be updating all of our members in our weekly email as soon as the new Post Office bonds become available, as they're likely to be limited issue and tend to get snapped up quickly. So, make sure you're among the first to know and sign up to our money saving tips newsletter.

There are a number of savings accounts offering even better rates than the Post Office Growth Bonds. View our savings comparison table to discover the best rates currently available.

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Your Comments

Paul Whitehead
on 14 Sep 2008 18:30
The Post office are extremely slow to get the bond opened, expect a 5-6 week delay. They say due to the bond being so popular they have been swamped out with applications!
 
Veronica Wells
on 10 Sep 2008 22:34
The Post Office bonds have been withdrawn from availablity at Post Office Counters, but if you have a form and send it in the post with relevant documentation, they will accept postal applications until 19th September. This is verified by contacting the Post Office Savings Telephone number direct. Hope this helps