Post Office Savings Account Calculator

Post Office Savings Accounts are a popular way to save money in the UK, offering fixed interest rates and bonuses. This calculator helps you estimate how much you'll earn over time with different deposit amounts and terms.

How Post Office Savings Accounts Work

Post Office Savings Accounts are time deposits that offer fixed interest rates for specific terms. These accounts are insured by the UK Financial Services Compensation Scheme (FSCS) up to £85,000.

Key Features

Fixed interest rates for specific terms (e.g., 1, 2, or 5 years)
Bonuses for certain deposit amounts
Access to your money before maturity (with potential penalties)
Insurance protection

Post Office Savings Accounts are different from regular savings accounts. They offer higher interest rates but require you to leave your money in the account for the full term.

Account Types

There are several types of Post Office Savings Accounts:

Fixed Rate Savings Accounts - Offer fixed interest rates for specific terms
Bonus Savings Accounts - Offer additional interest for certain deposit amounts
Junior Savings Accounts - For children under 18
ISAs - Individual Savings Accounts that offer tax advantages

How Interest is Calculated

The interest on Post Office Savings Accounts is typically calculated using simple interest, which means the interest is calculated only on the original principal amount.

Interest = Principal × Rate × Time

Where:

Principal = Initial deposit amount
Rate = Annual interest rate (as a decimal)
Time = Term of the account in years

For example, if you deposit £1,000 at 1.5% interest for 2 years:

Interest = £1,000 × 0.015 × 2 = £30

Understanding Bonuses

Many Post Office Savings Accounts offer bonuses for certain deposit amounts. These bonuses are typically added to your interest and are calculated as a percentage of the deposit amount.

For example, a £500 bonus might be offered for deposits of £1,000 or more. This would be calculated as:

Bonus = £500 (for deposits ≥ £1,000)

The total interest would then be the sum of the regular interest and the bonus.

Comparison with Other Savings Accounts

Post Office Savings Accounts offer higher interest rates than regular savings accounts but require you to leave your money in the account for the full term. Here's a comparison:

Account Type	Interest Rate	Access to Money	Term
Post Office Savings Account	1.5% - 5.0%	Before maturity (with penalties)	1-5 years
Regular Savings Account	0.1% - 1.0%	Anytime	No term
Online Savings Account	0.5% - 2.0%	Anytime	No term

Post Office Savings Accounts are a good option if you can leave your money in the account for the full term and want higher interest rates. Regular savings accounts offer more flexibility but typically pay lower interest.

FAQ

How do I open a Post Office Savings Account?

You can open a Post Office Savings Account at any Post Office branch or online through the Post Office website. You'll need to provide personal details and choose the account type and term.

Can I withdraw money before the account matures?

Yes, you can withdraw money before the account matures, but you may incur a penalty. The penalty amount depends on the type of account and how early you withdraw the money.

Are Post Office Savings Accounts insured?

Yes, Post Office Savings Accounts are insured by the UK Financial Services Compensation Scheme (FSCS) up to £85,000. This means that if the Post Office goes bankrupt, your money is protected.

What happens if I don't withdraw my money when the account matures?

If you don't withdraw your money when the account matures, it will typically be rolled over into a new account with the same interest rate and term. You can also choose to withdraw the money and reinvest it elsewhere.