post office savings...not safe now? time to bail?

steveo3002

just saw in the news that the post office savings isnt backed by the goverment anymore

does this mean its time to get out or what

any suggestions?

Hungerdunger

If you check out this article, you will find:

Save with one of these and your savings safety depends on the stability & solvency of a foreign government. There are two very noticeable examples of this:
Ireland.

The Irish government has guaranteed all savings up until 2010, plus it has nationalised Anglo-Irish Bank. As the Irish-owned UK banks operate the passport system, your safety is solely reliant on the solvency of the Irish government. This is something you must be aware of and research if you have money there.

As a note, all savings in Post Office accounts are under the Bank of Ireland's licence, hence guaranteed by the Irish government, except its Child Trust Fund.

So, in a nutshell, your savings are 100% guaranteed by the Irish Government. The only thing which could possible endanger your savings would be if their financial systems collapsed.

No one can tell you with certainty that this will never happen. How about doing some research using Google to see what commentators think about the health of the Irish economy, and then making your own mind up??

gozomark

how do you define save ? - do you mean 100% secure from loss ? unfortunately it doesn't exist, not even those backed by UK are 100% safe

bendipa

Hungerdunger wrote: »

If you check out this article, you will find:


So, in a nutshell, your savings are 100% guaranteed by the Irish Government. The only thing which could possible endanger your savings would be if their financial systems collapsed.

No one can tell you with certainty that this will never happen. How about doing some research using Google to see what commentators think about the health of the Irish economy, and then making your own mind up??

Plus the fact that Ireland is a member of the Eurozone. If Ireland is allowed to collapse it will spell disaster for the Euro, if not the whole reputation of the EU itself. The idea of union would have been dealt a mortal blow. So I wouldn't worry too much, unless you really believe the EU will collapse in the next 2 years or so, as some financial commentators recently have been suggesting.

WD40

Steve is referring to the frightening article on ITV London news. It cited that Lord Oakeshott, a Lib Dem peer, famous for predicting the Icelandic banking collapse, is criticising the UK Govt. for allowing the Irish Govt. to solely underwrite PO accounts. He wants the PO to get into bed with a stable British bank for extra protection.

Try a Google on Oakeshott. Methinks he knows his subject. The question in my mind is whether ITV (it was late in the bulletin) is recycling old news, or whether there are any new revelations here.

http://news.bbc.co.uk/1/hi/uk_politics/7663596.stm

Steve - you should read the Anglo-Irish thread a page or two down. I suspect PO savers are safer than Anglo-I savers...

steveo3002

WD40 wrote: »

Steve is referring to the frightening article on ITV London news. It cited that Lord Oakeshott, a Lib Dem peer, famous for predicting the Icelandic banking collapse, is criticising the UK Govt. for allowing the Irish Govt. to solely underwrite PO accounts. He wants the PO to get into bed with a stable British bank for extra protection.

Try a Google on Oakeshott. Methinks he knows his subject. The question in my mind is whether ITV (it was late in the bulletin) is recycling old news, or whether there are any new revelations here.

http://news.bbc.co.uk/1/hi/uk_politics/7663596.stm

Steve - you should read the Anglo-Irish thread a page or two down. I suspect PO savers are safer than Anglo-I savers...

yes thats the very news programme that scared me

not sure what to do now ...dont really understand too much about it all if im honest:o

what anglo thread should i read?

WD40

http://forums.moneysavingexpert.com/showthread.html?t=1420679

I would say that, if the proverbial hits the fan, PO savers will get a bailout from the UK Govt. if necessary. IMHO, PO savers are exponentially safer than Anglo-Irish savers - if - a BIG IF - the Irish Govt. can't keep their promise.

steveo3002

hmm id got the "close my account" letter ready to go in the morning

i dunno now...off to read that thread

thanks

Richchad

steveo3002 wrote: »

hmm id got the "close my account" letter reading to go in the morning

i dunno now...off to read that thread

thanks

Well Steve, what are you going to do, I've got my letter ready too...

bo_drinker

My O H sent the letter last night. I dare say there will be a few....

May be jumping the gun but who would have suggested we would be in the mess we are in (and getting deeper) a year ago ??

steveo3002

Richchad wrote: »

Well Steve, what are you going to do, I've got my letter ready too...

ive posted the letter first thing this morning...who knows but i cant afford to gamble with my savings

any suggestions on who to save with instead? or is it time to keep in a old shoe box