Compare Post Office ISAs

Who are Post Office Money?

Post Office Money was founded in 2015 by Post Office Ltd and provides a range of financial services to customers through the Post Office brand.

Among the financial services and products they offer are savings accounts, mortgages, loans and credit cards.

As part of their savings accounts range, they provide a number of Cash ISA accounts that can be opened online or in branch.

What is an ISA account?

ISA accounts are a type of savings account that protects your money from tax.

You can save up to £20,000 in ISAs in the current tax year, and your allowance refreshes each year.

ISA Tax Benefits:

In a regular savings or investment account, there are two types of tax you need to pay on your savings: income tax and capital gains tax.

1. In an ISA, you don’t need to pay income tax on the interest you earn on cash savings or dividends you receive from stocks and shares.
2. You also don’t need to pay capital gains tax on the growth of your stocks and shares when you sell them.

What are the different types of ISA accounts?

There are two main types of ISA account: Cash ISAs and Stocks and Shares ISAs.

Cash ISAs are for cash savings only, and you earn a rate of interest on the balance of your account.

Stocks and Shares ISAs allow you to invest your savings in the stock market and potentially benefit from investment growth and dividends.

Cash ISA Key Features:

1. Earn interest on your cash savings
2. Your ISA savings cannot go down in value
3. You could be charged for withdrawing early if you have a fixed-term ISA

Stocks and Shares ISA Features:

1. Invest in the stock market via funds, shares, ETFs, managed portfolios and other investments
2. The value of your ISA can go down as well as up
3. You can earn dividends as well as investment growth in your ISA
4. You can usually withdraw at any time

What type of ISA is a Post Office Money ISA?

Post Office Money do not provide a Stocks and Shares ISA.

However, they do offer a range of Cash ISA accounts that vary based on interest rates, the flexibility of withdrawals, and how they can be opened and managed (e.g., online, by phone, by post or in branch).

The main varying factor between different Cash ISA accounts is the type of interest they offer – either fixed or variable interest rates.

What’s the difference between a fixed-rate ISA and a variable-rate ISA?

Fixed-Rate ISAs

1. Fixed-rate Cash ISAs provide a guaranteed rate of interest
2. You are committed to a specific term length between 1 and 5 years
3. You can’t withdraw or close your account before your term ends or you’ll be charged
4. The longer term you commit to, the higher interest rates you can get

Instant-Access ISAs

1. Variable-rate Cash ISAs provide an interest rate that fluctuates
2. Variable interest rates are typically lower than fixed rates
3. You can usually withdrawal free of charge with no notice period

Can I transfer my ISA into a Post Office Money ISA?

You can transfer any of your old ISAs to a new Post Office ISA to open your account.

ISA transfers do not count towards your ISA allowance. This means you can transfer multiple ISAs in the same tax year while still adding up to £20,000 of new money as well.

Note: if you just withdraw your existing ISA and then add it to a new ISA, you’ll lose that portion of your ISA allowance. Instead, make sure you use the below method to transfer your ISA.

ISA Transfer Steps:

1. Contact your existing ISA provider to ask if you’ll be charged for transferring out.
2. Complete an ISA transfer form with your new provider and send it back.
3. Your new provider will then carry out your ISA transfer and notify you when complete.

How do I open a Post Office Money ISA?

The easiest way to open a Post Office ISA is online. You can set up a Post Office Cash ISA in a matter of minutes, and add money to your account with a debit card payment or direct debit.

However, Post Office do also offer a range of ISA accounts that can be opened and managed by phone, post or in branch if you prefer these methods.

To open a Post Office ISA, you must be:

1. At least 16 years of age
2. A UK resident

You will need:

1. Your basic personal information
2. Your National Insurance Number