Written by Karen Bryan
The Post Office is offering a rate of 2.25% on their two-year fixed rate Cash ISA. If you don’t want to tie up you savings for too long, but want to earn a reasonable rate of interest, then this account is fairly attractive.
If inflation stays around its current level of 2.1% then the money deposited in this Cash ISA account should maintain its spending power during the two-year term.
It’s hard to judge when the rates of interest paid on savings will improve significantly. There could be a temporary boost to attract savers around the start of the new Cash ISA year in early April.
Rate of interest correct on 12 January 2014.
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