We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Post Office /Bank of Ireland
Options
ANGLICANPAT
Posts: 1,455 Forumite
Make you laugh wouldnt it. The big writing on the front of the PO leaflet for their 1yr 7.01% bond boasted
NO SURPRISES. JUST A GUARANTEED RATE AND A FIXED RETURN.
Then they go and make a surprise announcement last week that effectively undermines the security we had when we took the bond out. Im fuming.
This is the paragraph at the bottom of the letter welcoming me to the bond
"Deposits are held and administered by Bank of Ireland. BOI group follows the banking code and copies of the code are available on request. B of I is authorised by the Financial Regulator in Ireland , incorporated in Ireland with limited liability, under Registered No C-1 Principal office Lower Baggot St Dublin 2; regulated by the Financial Services Authority for the conduct of UK business. Post Office Ltd is registered in England and Wales. Reg No 2154540 Reg office --blah
. Post Office and the Post Office symbol are registered trademarks of PO Ltd and are used under license. "
then on the leaflet, it goes on
"B of I is a member of the Financial Services Compensation Scheme established under the Financial Services and Markets Act 2000. In respect of deposits with a UK office, payments under the scheme are limited to 100% of the first £35k of a depositors total deposits with the bank"
Seeing as how a lot of people like me will have gone ahead with this , partly because of the feeling of safety you get with the PO name, and partly because they , like me, saw that it was under the FSA for the amount of money I had in -- how can they get away with now telling us we are no longer covered by anything but the sinking Irish Government? Legally they might manage it, but morally? And with so many 'little savers' probably entering trustingly in this bond , I reckon if Ireland cant fulfill its guarantees then the British Govt would have uproar on their hands to act for PO savers with the Irish Bank , as they did for Iceland? although,--- that letter the PO has sent out , is probably on the instruction of our Govt who are grateful they can squeeze out of it?
If those paragraphs above do NOT indicate that we were under the FSA when we took out the bond, then I think the wording was grossly misleading
:mad: :mad: :mad:
NO SURPRISES. JUST A GUARANTEED RATE AND A FIXED RETURN.
Then they go and make a surprise announcement last week that effectively undermines the security we had when we took the bond out. Im fuming.
This is the paragraph at the bottom of the letter welcoming me to the bond
"Deposits are held and administered by Bank of Ireland. BOI group follows the banking code and copies of the code are available on request. B of I is authorised by the Financial Regulator in Ireland , incorporated in Ireland with limited liability, under Registered No C-1 Principal office Lower Baggot St Dublin 2; regulated by the Financial Services Authority for the conduct of UK business. Post Office Ltd is registered in England and Wales. Reg No 2154540 Reg office --blah
. Post Office and the Post Office symbol are registered trademarks of PO Ltd and are used under license. "
then on the leaflet, it goes on
"B of I is a member of the Financial Services Compensation Scheme established under the Financial Services and Markets Act 2000. In respect of deposits with a UK office, payments under the scheme are limited to 100% of the first £35k of a depositors total deposits with the bank"
Seeing as how a lot of people like me will have gone ahead with this , partly because of the feeling of safety you get with the PO name, and partly because they , like me, saw that it was under the FSA for the amount of money I had in -- how can they get away with now telling us we are no longer covered by anything but the sinking Irish Government? Legally they might manage it, but morally? And with so many 'little savers' probably entering trustingly in this bond , I reckon if Ireland cant fulfill its guarantees then the British Govt would have uproar on their hands to act for PO savers with the Irish Bank , as they did for Iceland? although,--- that letter the PO has sent out , is probably on the instruction of our Govt who are grateful they can squeeze out of it?
If those paragraphs above do NOT indicate that we were under the FSA when we took out the bond, then I think the wording was grossly misleading
:mad: :mad: :mad:
0
Comments
-
Has anyone found out what the "Bond Breakage Charge" is if you withdraw your money early from a Growth Bond?
This is a difficult one, do we leave it there and hope for the best, or that the UK government pay up if the Irish system fails...
The Growth bond Terms state "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"
So how can you find out what the charge is before requesting it??
Surely the terms have change and you should be able to withdraw without penalty and at least some interest...:mad:0 -
Very underhand indeed.
Morally wrong? Hell yes!
Changing terms, legally, normally apply only at the date changed, a contract is formed,
but what do we expect from the banking industry.
The FSA coverage was a key criterion to taking it out.
Suppose this is an example of why globalization has failed, what on earth is the Post Office, A British icon, doing being run by a foreign entity? That may be the key, because if TSHTF you will have no recourse because it is overseas and laws are different and the norm will not apply.
I imagine a lot of elderly people have put money here, just because it’s the Post Office, and could well do without the stress.
Hopefully the Irish economy recovers next week and it will be a storm in a tea cup.
Oh yea, and pigs might fly!0 -
The cost to break the bond? I think its whatever they want to make it at the time, thats why they cant give you a formula to work it out. Ive just been told I have to write to them with my emergency circumstance for wanting the bond encashed , requesting to know the penalty, and they will inform me what it is within 7 days.0
-
ANGLICANPAT wrote: »The cost to break the bond? I think its whatever they want to make it at the time, thats why they cant give you a formula to work it out. Ive just been told I have to write to them with my emergency circumstance for wanting the bond encashed , requesting to know the penalty, and they will inform me what it is within 7 days.
I rang and was told the same, they have had many calls, surprise surprise, :rolleyes:
I have posted letter today asking for a rough figure or the formula and now await the reply, still not sure what to do though.0 -
ANGLICANPAT wrote: »The cost to break the bond? I think its whatever they want to make it at the time, thats why they cant give you a formula to work it out.
There is a formula - it's in the handbook to go with the bond, seems a bit hefty (in my case) to pull out early.
Still I've posted a letter as requested, see what comes back.0 -
So what is the formula if youve found it ? Do you mean youve written to them asking to come out?0
-
If you withdraw the deposit before the end
of the fixed term, you will have to pay a fee
(unless Special Conditions 18 and 19 apply).
This fee reflects our costs and is calculated
by the difference between the original deposit
rate and the prevailing rate on the date of
withdrawal. We refer to this as a “Breakage
Charge”. This will be calculated as follows:
P x (R-D) x T
____________
36,500
Where:
P = Amount Withdrawn
R = Replacement Interbank Market Rate
D = Rate on the Bond
T = Remainder of Fixed Term in0 -
jack_spratt wrote: »If you withdraw the deposit before the end
of the fixed term, you will have to pay a fee
(unless Special Conditions 18 and 19 apply).
This fee reflects our costs and is calculated
by the difference between the original deposit
rate and the prevailing rate on the date of
withdrawal. We refer to this as a “Breakage
Charge”. This will be calculated as follows:
P x (R-D) x T
____________
36,500
Where:
P = Amount Withdrawn
R = Replacement Interbank Market Rate
D = Rate on the Bond
T = Remainder of Fixed Term in
Thanks for that Jack, but any idea what the "Replacement Interbank Market Rate" is at the moment and what is the Remainder of the Fixed Term in...months, days?0 -
T = Remainder of Fixed Term in days0
-
Who can do that sum then? For £1000 say (using approx int rates for ease)
amount x (present rate minus bondrate) x 300dys
1000 x ( 2%-7%) x 300 dys left0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244K Work, Benefits & Business
- 598.9K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards