post office savings and premium bonds...how safe?

steveo3002

is the post office savings ever likely to go down then pan ? my mother has over 35k and is getting a bit shifty with all the bank probs as of late

should we be concered ? or is it a little safer than a high st bank?

nilrem_2

Both are safe, so is the money in any other UK bank or building society!

dunstonh

post office savings are under the Bank of Ireland and normal FSCS protection applies. NS&I is backed by the Treasury so 100% protection.

steveo3002

dunstonh wrote: »

post office savings are under the Bank of Ireland and normal FSCS protection applies. NS&I is backed by the Treasury so 100% protection.

so the savings account is no safer on paper than any other bank ? im thinking we should move funds around to get under 35k

opinions4u

This 100% protection for Northern Rock and National Savings is misleading.

While unlikely, governments can default on repaying loans.

There is an element of risk, albeit small.

dunstonh

post office savings are generally poor value. So, I would be more concerned about getting a decent rate than financial solvency.

billieboy_2

dunstonh wrote: »

post office savings are generally poor value. So, I would be more concerned about getting a decent rate than financial solvency.

They've now got a Cash ISA paying 6.25% and accept transfers in.

jack_spratt_2

dunstonh wrote: »

post office savings are generally poor value. So, I would be more concerned about getting a decent rate than financial solvency.

Until recently had a 1 year bond of 7.05% I would not call that poor value

tiptoe_mouse

It is important to recognise that there is a difference between National Savings - which is government backed - and the Post Office brand of financial products - which is only covered to the same extent as any bank or building society.

tiptoe