Post Office Savings not safe?

H

Heckler

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Last weekend there was a small article in the Mail about the Post Office being in reality the Bank Of Ireland. Any way we thought, my girls have got their savings in there, I knew that Ireland has got serious probs with its banks and I started to look at getting their dosh out. One daughter is in Singapore Uni and the other in Swansea Uni, probs getting them to sign things, old fashioned pass books, what a mess. Anyway find out that in fact the dosh is with NS &I, in effect the British govt. Phew! Just reading Mail on Sunday and bottom line this week is that the Irish banks are basket cases. The poor old Post Office has sent out letters to investors reminding them that they are not covered by the British bank guarantee scheme. Investors are relying on a little country, much like Iceland to guarantee millions of pounds worth of investments of another country!
The MOS quotes a leading finance services professional who lambasted the govt of Ireland as comprising "small minded, limited real world experience types focused only on the appeasement of their Fianna Fail cronies - in a country that is, lets face it, uneducated, risk averse and subsidies dependent" (and by the way dont shoot the messenger!!)
Bottom line seems to be, get your dosh out quick!
Stu
 
I remain confused after reading your post, particularly on whether you are suggesting the Post Office is the Bank of Ireland or not. I think the position is that savings with the Post Office are with National Savings and Investments. This is under-written by the UK government. It is not a bank, and therefore cannot by definition be covered by the bank guarantee scheme. However, it will go into default only if the UK government goes into default. Possible, but very unlikely since money can alays be printed to pay for NS and I investments.

From the NS and I website:

"At NS&I we offer a range of savings and investments to suit different people’s needs. Because National Savings and Investments is backed by HM Treasury, you can rest assured that all your capital is 100% secure, however much you invest."

The Irish banks, and Ireland in general, are in a poor state. For example, Dell is ceasing production and at a stroke removing several percent of GDP. But, unless I am wrong, this has no direct implications for NS and I.

Someone please correct me if I am wrong.
 
[ QUOTE ]
I remain confused after reading your post, particularly on whether you are suggesting the Post Office is the Bank of Ireland or not. I think the position is that savings with the Post Office are with National Savings and Investments.

[/ QUOTE ]I agree it's confusing. Some Post Office accounts are run by the Bank of Ireland - these include the Instant Saver and Growth Bonds. Some Post Office ISAs are run by Family Investments, which is authorised by the FSA. The Post Office also sells NS&I products.
 
The web site given by skipper_stu gives excellent reviews on the safety of bank/building societies. We are living in very worrying times, all thro. greed.
 
As an Irishman I was always mystified about where my unnatural and unreasonable prejudice against the Welsh originated. I was really worried once when my daughter brought one home but the dour git only lasted a week or two thank God. Having read this post I am now comforted to learn that it was not prejudice at all but perceptive common sense.
 
"lets face it, uneducated, risk averse and subsidies dependent,"

Obviously you know very little about the country,

Have you any idea why Bank Of Ireland was running the Savings system in the English Post Office??

Messengers who spread rubbish, deserve to be shot.

At least if the Government here does give you some cash twil be Euros, Not Zimbabwean Dollars or Sterling, ( I believe the wet ink is very hard to get off your hands) /forums/images/graemlins/laugh.gif
 
Skipper-stu Don't do that i opened your post and had heart failure, The wife invested in growth bonds with the bank of ireland last year. I have gone through all the information and the goverment has covered up to £95,000 for two years under the guarantee scheme, Just hope the goverment don't go bust
 
Thats the prob and what the Mail is going on about, basically can Ireland cover the debts if? they go tits up, have you read the link further up the thread? scary, my 2 girls have got quite a substantial sum in NS&I which I thought was the Bank of Ireland but is in fact our govt. I panicked and was going to try and pull it out untill I realised that it was NS&I. Read what some of the pros are doing, basically getting their money out if at all possible!!
I am still not conviced that we can cover a really big one if one were to go!!
Stu
 
If no one panics - no problem.
If everyone panics - big problem

Trouble is that confidence is on a bit of a knife edge with all governments (excluding Zimbabwe) trying hard to support it.

SWMBO panicked last year and pulled funds from a bank that was rumoured to be failing and lost the ISA status. I left mine in. Then Govt propped up the bank so it survived.

Just best not to have all your chickens in one basket. Problem then is unless you can risk big currency fluctuations how do you avoid having all your eggs in the UK basket.

Bah! I'd rather be sailing. Roll on the summer.
 
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