Growth Bonds

Yes, if you're aged 16 or over and a UK resident for tax purposes, either individually or jointly with one other person. A Growth Bond can also be opened for a child under 16 in the child's name by a parent or legal guardian.

When we receive your application and initial deposit we will open your account.  This normally takes 2/3 working days. To do this we need to complete a number of tasks. This includes confirming your identity and address. For the majority of customers we do this through electronic verification, e.g. voters roll checks. Some customers may be required to provide further evidence and in these cases we will write to you. The whole application process will depend on how long you take to return your signed application form to us.

Please note: Interest is payable once your account has opened and your initial deposit has cleared.

The minimum amount is £500, and further deposits may not be made to the Bond during the term.

The maximum amount is £1,000,000 and further deposits may not be made to the Bond during the term.

For terms of 1 year, interest will be paid at the end of the term. If you choose an investment term of longer than 1 year:

1. By default, interest will be added to your Bond annually and be available for withdrawal at the end of the fixed term.

2. Alternatively, you can choose to have your annual interest paid into a nominated bank/building society account. You can select this option on the application form.

If you choose to have your annual interest paid into a nominated account your total return will differ due to interest not compounding.

We will write to you shortly before your Bond matures to let you know the date of maturity and how much will be maturing. We will also inform you of the reinvestment options available at that time. If you choose not to reinvest, and unless you advise us otherwise, then we will put your funds in an Easy Saver account. This is a variable rate savings account where you can access your savings when you choose. It can be managed by phone, post and online.

The level of protection you’ll receive depends on which product you have and when you took it out. The table below details the protection offered to Post Office® savings customers.

Further information about the differences between the UK Financial Service Compensation Scheme and the Irish Deposit Protection Scheme, and about which scheme covers your Post Office® savings account.

All interest is liable to UK Income Tax. When we add the interest to your account, we take off tax at the basic rate. If your income is not high enough to pay tax, you can register as a non-tax payer. Interest will then be added to your account without tax taken off. This is based on our understanding of current law and HM Revenue & Customs practice, which may change and we can’t predict such changes.

If you're a non-tax payer and don't want to have tax taken off your interest, you need to tell us. You can do this by phone, call 0845 602 3409* (you will need your 6 Digit Security Number, which is sent to you in the post once your Bond is opened). You can also register by post using an R85 form. To get a form give us a call, or go online via the following link: www.hmrc.gov.uk/forms/r85.pdf (PDF - Opens in a new window)

For joint accounts, both Account Holders must make a declaration before interest can be paid without tax taken off.

The Bond may remain invested in your name until it matures or it may be closed. If it is closed before maturity, we will repay the amount invested in the Bond together with any interest accrued up to the date of withdrawal. The Terms and Conditions contain full details.

Before opening a Growth Bond, you should be sure that you will be able to leave your deposit untouched for the whole 1, 2 or 3 year term. However, if you do need to withdraw all of your money before the Bond matures, then a Bond Breakage Charge will be applied. This will be calculated and advised to you at the time your request is made and will be deducted from your capital, meaning you could get back less than you invested. Partial withdrawals are not allowed. If you require more information about breakage fees then please contact our Customer Services on 0845 602 3409* and they will be able to provide you with full Terms & Conditions.

There are no charges or fees, other than a Bond Breakage Charge where you need to make a withdrawal during the fixed term.

First of all, we hope you never have reason to find a complaint with our Growth Bond account. However if you do need to talk to us, please don't hesitate to call us on 0845 602 3409* to speak to one of our Customer Service representatives. Our lines are open 8.00am - 10.00pm weekdays, 8.00am - 6.00pm Saturday and 10.00am - 5.00pm Sunday and Bank Holidays.

Or write to us at:
Post Office Financial Services
Customer Care Team
PO Box 27
One Temple Quay
Bristol BS99 7AX

We will do all we can to sort out your enquiry or complaint as soon as possible. Please allow up to 5 working days to receive a reply. 

If you have made a complaint but are still not satisfied with the response you have received, the Financial Ombudsman Service may be of assistance. They are independent and can help to resolve disputes between banks and their customers:

The Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall
London
E14 9SR

Phone: 0845 080 1800

Email: enquiries@financial-ombudsman.org.uk 
Website: www.financial-ombudsman.org.uk (opens in a new window)

*Calls may be monitored and recorded for training purposes. Call costs may vary depending upon your service provider.

Post Office Ltd is an appointed representative of the Governor and Company of the Bank of Ireland which is authorised by the Irish Financial Regulator and authorised and subject to limited regulation by the Financial Services Authority; details about the extent of Bank of Ireland’s authorisation and regulation by the Financial Services Authority are available by request. Bank of Ireland, 1 Donegall Square South, Belfast, BT1 5LR. Post Office Ltd is registered in England and Wales, Registered No. 2154540. Registered Office 148 Old Street, London EC1V 9HQ. Post Office and the Post office logo are registered trade marks of Post Office Limited.