Post Office launches inflation-beating savings bond

Its new issue, available to customers from today until Friday January 20, 2012, offers a choice of a three-year fixed-term bond that offers annual RPI inflation rate plus 0.25 percentage points or a five-year fixed bond that offers annual RPI inflation rate plus one percentage point. Either bond can be opened with a single deposit of £500 up to a maximum of £1m with the return calculated annually and paid at maturity. No additional deposits are permitted and the account cannot be accessed until the end of the fixed term. The rate of return is based on the annual Retail Price Index (RP...