The ISA offers customers the ability to save their annual cash ISA allowance across multiple products, with variable and fixed rates all in one online account.

Post Office Money said the ISA sought to address the frustration of customers at being restricted in only being able to open one cash ISA per tax year. The new ISA allows customers to consolidate all their ISAs, spreading or splitting their savings across various rates in one tax-free account; another key feature is the option to transfer and convert existing stocks and share ISAs into a cash ISA account.

The Online ISA is available to customers to save up to £15k tax-free a year as of today. Available products include:

• Easy Access Issue 1:

o             1.50% tax-free/AER* Variable which includes a 0.85% fixed tax-free bonus for the first 12 months

• Fixed Rate Issue 1:

o             1 year at 1.55% tax-free/AER* Fixed

o             2 years at 1.95% tax-free/AER* Fixed

• Holding Account (set up automatically to hold funds before being placed in products)

o             0.65% tax-free/AER* Variable

“Being able to manage multiple products online gives customers flexibility and control over their money, while also giving them access to a range of competitive products,” Henk Van Hulle, head of savings and investments at Post Office Money, said. “Whether customers simply want a fixed or variable rate, the ability to open multiple cash ISA products in the same tax year, or the ability to manage their cash ISA savings online or all of the above – the new Post Office Money Online ISA is definitely one to consider.”

*AER (Annual Equivalent Rate) is the official rate for savings accounts, designed to make comparing savings accounts easier (similar to APR for debt).

AER can show a ‘truer’ rate than Gross, as it considers more factors, and assumes money is kept in a particular savings account for a year.