Savings Interest Rates, Switch Offers and Guides for Post Office

Who they are

Post Office is one of the most recognised names in the UK, but it is worth understanding what sits behind the savings brand. The Post Office is a brand, not a bank itself - the majority of its savings accounts are provided by Bank of Ireland UK plc. The Post Office and Bank of Ireland UK have partnered for more than 20 years to offer a range of financial services under the Post Office brand. Post Office Ltd as it exists today came into being in 2001, and the Postal Services Act 2011 led to it becoming independent of Royal Mail Group as of April 2012.

Savings accounts

At the moment, the Post Office savings account available through DepositScout is the Online Saver - a variable-rate easy access account you can open from just £1.

The headline rate is 4.31% AER, but it is important to read the small print carefully here. That rate includes a fixed bonus of 3.41% gross that applies only for the first 12 months. After that, the account reverts to the underlying variable rate of 0.90% AER. If you are happy to shop around again after a year, it can work well as a short-term home for your cash. If you would rather set and forget, the drop-off in rate after 12 months is significant and worth planning for.

The account is opened and managed online, with instant access to your money whenever you need it.

FSCS protection - a key thing to know

Your eligible deposits with Bank of Ireland (UK) plc are protected up to a total of £120,000 by the Financial Services Compensation Scheme. That is the higher limit that applies to Post Office savings accounts, which is a welcome level of cover. However, there is an important wrinkle: this limit applies to the total of any deposits you have with "Bank of Ireland UK" and "Post Office Money" deposited with Bank of Ireland UK, and any total deposits above the limit between these brands are unlikely to be covered. In plain terms, if you already save directly with Bank of Ireland UK, your Post Office balance and that balance count toward the same pot. Keep that in mind if you hold significant sums across both.

Is it right for you?

The Post Office Online Saver suits someone who wants a trusted, familiar name, instant access, and a competitive rate for the first year - and who is comfortable switching again once the bonus period ends. The brand's wide recognition and straightforward online account management make it accessible, but the underlying rate of 0.90% after 12 months is a reminder that the headline figure is not permanent.

There are no switch offers or cash incentives in place right now. As always, the live rates shown on this page are the most up-to-date figures - it is worth checking them before you decide.