Post Office 1 yr Growth Bond

Richchad

Coral_10 wrote: »

I have the 1 yr growth bond as well but are you sure there's not breakage fee? It says on the growth bond FAQ that there is on the website.

Cheers

I sent my letter off this morning, as said before I think it would have been okay to leave it, but got fed up having to check the news etc all the time in case things were going bad for BOI.. :rolleyes:

I didn't have any breakage fee according to the letter they sent to me about a month ago, although it did say only valid for 7 days, but I would have thought they might be pleased that they haven't got to pay out 7%+ on some of these accounts with a 0.5% bank rate.

Coral_10

Richchad wrote: »

I sent my letter off this morning, as said before I think it would have been okay to leave it, but got fed up having to check the news etc all the time in case things were going bad for BOI.. :rolleyes:

I didn't have any breakage fee according to the letter they sent to me about a month ago, although it did say only valid for 7 days, but I would have thought they might be pleased that they haven't got to pay out 7%+ on some of these accounts with a 0.5% bank rate.

Thanks

Do you mean within 7 days of opening it?

Richchad

Coral_10 wrote: »

Thanks

Do you mean within 7 days of opening it?

No, the breakage fee was only valid for 7 days..the letter said "This fee is subject to constant change, and the above quote is valid for 7 days from the date of this letter"

I am assuming if it was nil for me in February it would still be, however I did put in my closure confirmation letter 'only if breakage fee is still nil and interest is paid up to closure date'

Coral_10

Richchad wrote: »

No, the breakage fee was only valid for 7 days..the letter said "This fee is subject to constant change, and the above quote is valid for 7 days from the date of this letter"

I am assuming if it was nil for me in February it would still be, however I did put in my closure confirmation letter 'only if breakage fee is still nil and interest is paid up to closure date'

Haha! I’m soooo tempted to hang with it until (if, perhaps!) the BOI is nationalised or something and then jump in and withdraw before Ireland is sent back to the Dark Ages!

What do you think?

Richchad

I am sure it will probably be alright to leave it, I was in two minds about it, trying to convince myself if the bank has problems, the Irish government will take it over, if not they will guarantee the savings, and if they can't the UK government would step in to save PO savers like they did with Icesave..... but there are a lot of 'ifs' there and I wasn't prepared to live for next 6 months worring about it for a few extra pounds..

tomandkath

Bear in mind though that when Icesave went up the creek, many of us "jumped in" to quickly get our Kaupthing Edge savings out before anything happened to them, only to find ourselves unable to get our money for weeks. I'm not sure how much "jumping" time we'd have!

tomandkath

I can't help thinking that even though this is the BoI and nothing to do with the UK, there must be squillions of savers who are still oblivious (despite numerous letters) to the fact that their savings aren't completely safe tucked away with the Post Office and that the UK would not let the BoI do the dirty.

jack_spratt_2

I think everyone's position is different !! it depends on how much as a percentage of your savings you have tied up in the Bank of Ireland (Post Office) .What is your attitude to that risk factor is !! how long you have to go before the bond matures !!

There is a set formula to work out the breakage charge as posted in another thread and I think while interest rates remain below the rate you invested in the bond it should be nil.
The fact that Ireland is in the euro zone should be a help as the knock on effect to other euro zone countries would be immense

Gwhiz

Staying put!

Coral_10

Richchad wrote: »

I am sure it will probably be alright to leave it, I was in two minds about it, trying to convince myself if the bank has problems, the Irish government will take it over, if not they will guarantee the savings, and if they can't the UK government would step in to save PO savers like they did with Icesave..... but there are a lot of 'ifs' there and I wasn't prepared to live for next 6 months worring about it for a few extra pounds..

I don't have too much invested in it but i think i'll stick it out for a while and see what happens with BoI and also the Irish economy - I'm sure it won't in the next 8 months or so.

Let us know how quick your turnaround is!