News and press releases

Post Office

11 June 2007
Post Office® launches New "Fiveyear Saver"

The Post Office® today announces the fourth issue of its Fiveyear Saver - a five year, fixed-term deposit bond - offering customers a guaranteed return with the benefit of further growth potential linked to the FTSE 100-Index.Customers have until 14 September 2007* to take advantage of this great offer, which manages their money in two ways: • Half of their deposit earns a very competitive 6.5 per cent gross/AER* per annum for the five year fixed term period• The other half benefits from a 50 per cent return on any increase in the FTSE-100 Index over the five year period

Customers have until 14 September 2007* to take advantage of this great offer, which manages their money in two ways:

• Half of their deposit earns a very competitive 6.5 per cent gross/AER* per annum for the five year fixed term period
• The other half benefits from a 50 per cent return on any increase in the FTSE-100 Index over the five year period. Customers’ original deposits are guaranteed should the FTSE-100 Index fall.Post Office® head of savings and investments Richard Norman said: "Following the success of our previous Fiveyear Saver issues, we are pleased to announce the launch of a new five year savings bond.

"Post Office® Fiveyear Saver is a balanced investment which gives a guaranteed return, while still having access to the growth potential of the FTSE-100 Index. There is no risk of losing your original deposit and you can invest from just £500."

This limited offer is open from 11 June 2007 until 14 September 2007**. The minimum investment is £500.

Post Office® Fiveyear Saver:

	Half of deposit pays a fixed rate	Half of deposit is linked to FTSE-100 Index
Interest rate / participation rate	6.5% gross/AER*	50%
Start date/Index Level 1	-	18 October 2007
End date/Index Level 2	-	11 October 2012
Term	5 Years
Offer period	11 June 2007 - 14 September 2007
Interest during offer period	5% gross/AER*
Fixed term	18 October 2007 - 18 October 2012
Minimum opening deposit	£500
Maximum opening deposit	£1,000,000
Additional amounts	None - opening deposit only
Withdrawals	None - until end of fixed term
Interest paid	At end of fixed term

To find out more about Post Office® Fiveyear Saver log onto www.postoffice.co.uk/savings or call 0800 169 7500.

- Ends -

* AER stands for Annual Equivalent Rate and illustrates what interest a saver would receive if the interest was paid and compounded each year
** Offer will close earlier if fully subscribed. 5 per cent AER interest during offer period is paid from 11 June 2007 - 18 October 2007.

For more information please contact:
Inez de Koning - 020 7294 3623
Linda Tyson - 020 7566 9713
Inezd@lansons.com
Lindat@lansons.com

Hayley Fowell
Royal Mail
Press Office
148 Old Street
LONDON
EC1V 9HQ
020 7250 2417
hayley.fowell@postoffice.co.uk