Post Office, safe as...??

vigman

I had an argument with a colleague yesterday (actually our Finance Manager) who stated that savings in the Post Office were as safe as with NS and I.

Their point was even though PO savings are with the Bank of Ireland, no UK government would allow PO savers to lose their money.

Any thoughts on this?

TIA

Vigman

dunstonh

Technically the NS&I is the safest option.

The Govt has shown that it is willing to protect all personal deposits to date. As long as it was FSA authorised. However, that is not guaranteed. Whereas NS&I is.

innovate

If I understand correctly, UK deposits in the Post Office are guaranteed under a passport scheme which is underwritten to 100% by the Irish Government until sometime in 2010 (September?). The Post Office is also authorised by the UK FSA. UK institutions, as well as some subsidiaries of foreign banks (e.g. B&B), are also FSA regulated but operate with the FSCS guarantee up to £50K, with no time limit that I am aware of. And then there is NS&I, as dunstonh already mentioned.

You could argue that there is now precedence that the UK Government will come to the rescue of savers with a passport scheme if needed, but that is pure speculation. You could also argue that Ireland is highly unlikely to go bancrupt, but who knows what the future holds.

I don't think you can generalise on what is 'safer' - it's a personal choice that should be made based on facts and personal circumstances

Personally, I wouldn't deposit any money under a passport scheme ever again (i.e. not in any Irish bank, not in the Post office, not in ING).

vigman

I have to be very honest and admit that I have now withdrawn substantial savings from ING. I feel guilty about this as I have acted like other lemmings, and such action alone could cause a needless run on the bank.

Does anyone else feel like this?

Vigman

Gwhiz

vigman wrote: »

I have to be very honest and admit that I have now withdrawn substantial savings from ING. I feel guilty about this as I have acted like other lemmings, and such action alone could cause a needless run on the bank.

Does anyone else feel like this?

Vigman

No, just you

nzseries1

vigman wrote: »

I have to be very honest and admit that I have now withdrawn substantial savings from ING. I feel guilty about this as I have acted like other lemmings, and such action alone could cause a needless run on the bank.

Does anyone else feel like this?

Vigman

I'd feel more guilty about hijacking somebody else's unrelated thread
But to answer your question, I'm leaving mine in since they announced today that they will honour the fixed interest rates.

apt

ING is a big international bank. It won't be undermined by some nervous individual savers. I am less convinced by the Irish banks, although the Bank of Ireland does seem to be one of the stronger Irish banks. There's a big boom to unwind in Ireland, unlike the Netherlands. Also the Irish government 100% savings guarantee is, as others have said, a confidence measure designed to avoid an outflow of capital. The Irish government does not have the money to back this up if things start to go badly wrong.

vigman

nzseries1 wrote: »

I'd feel more guilty about hijacking somebody else's unrelated thread
But to answer your question, I'm leaving mine in since they announced today that they will honour the fixed interest rates.

Hang on...it was MY thread to begin with:rotfl:

Vigman

Seajays

vigman wrote: »

Hang on...it was MY thread to begin with:rotfl:

Vigman

:whistle:

:rotfl::rotfl::rotfl:

nzseries1

vigman wrote: »

Hang on...it was MY thread to begin with:rotfl:

Vigman

I have GOT to start paying attention.
MEH, that sounds like too much work.
Hmm, am I hijacking this thread by posting this?