Post Office Savings

OneADay

Not wishing to scare anyone, I have genuinely been looking at the savings offerings at the Post Office.

But the safety of Bank of Ireland is a concern but that is just articles on the net, I have no proof of anything. Reading the articles suggests that savers in Post Office are covered until 30th Sep 2010 - my question is what happens after that?. Has Royal Mail got any new agreement coming with anyone?

Was thinking of sticking some money away for 2 years but its more murky.

Farway

Post Office is not same as Royal Mail, it used to be but now are two separate entities

However as PO is still owned by us via Government, and many little old ladies have their savings in there, can you really imagine any UK Government not backing PO savings if it all went belly up?

Come to that, can you imagine the Irish government not bunging more squillions into BOI?

I have no savings in there BTW, but if I did I would not worry about it

glider3560

Farway wrote: »

Post Office is not same as Royal Mail, it used to be but now are two separate entities

For clarification, Post Office Limited is a wholly owned subsidiary of Royal Mail Group plc which is wholly owned by HM Government.

OneADay

Farway wrote: »

Come to that, can you imagine the Irish government not bunging more squillions into BOI?

I think I will pass on it (have considered it enough) - the problem is not knowing what will happen after 09/10 when BOI guarantee runs out and its not covered by UK.

Was thinking of the 2 year bond .... its probably an omen not to do do 2 year bonds (got a few too many as it is and headaches).

juicyjude

I would pass on it to to be honest. Oh to have a crystal ball eh! Probably would be OK but if you are a worrier and need to sleep, well........................

alanq

The deposit taker is the Bank Of Ireland so the status of the Post Office is irrelevant.

The Irish Government has been guaranteeing unlimited amounts. After 30th September a €100,000 (c £89,000) limit applies. Also for some accounts " If taken out between 11 January and 29 September 2010 - fully guaranteed until maturity"

http://www.postoffice.co.uk/portal/po/content2?catId=19300232&mediaId=92400749

So no worries unless the Irish Government defaults.

Sceptic001

alanq wrote: »

The deposit taker is the Bank Of Ireland so the status of the Post Office is irrelevant.

This is true, but Faraway's point:

Farway wrote: »

...as PO is still owned by us via Government, and many little old ladies have their savings in there, can you really imagine any UK Government not backing PO savings if it all went belly up?

is also sound. The UK government bailed out Icesave savers who foolishly breached the FSCS limit. It is unthinkable that they would let those little old ladies with their £500 life savings go to the wall if Bank of Ireland goes bust and the Irish govt defaults on its compensation pledge.

robbieroy

Despite some of the worries expressed regarding the guarantee that is available, I think the 2-year fixed rate bond at 4.05% AER from the Post Office is one of the better remaining 2-year fixed deals available.
I am thinking about it - would anyone warn me off for reasons I might not know of?
RR

[Deleted User]

I'm also seriously considering investing in the Post Office 2 year account. As I understand it, for all investments made until Sept, are fully guaranteed to maturity. I know thers's been some doubt regarding the BOI reliability, but I think this may have been just scaremongering. Any comments anyone?...

robbieroy

We are not getting any support on this 2-year PO bond venture but, on the other hand, no one is warning us off it!
My intention is to transfer from an account with one of the "big banks" that is only earning 0.75% AER into the PO 2-year fixed Growth Bond earning 4.05% (fixed) AER. I think this is a good move given that I am a cautious saver and at the end of the two years, the money can be moved to another account on maturity. I would hesitate at locking the money away for a longer period.
If the interest rates pick up at the end of two years, so much the better.
Currently, the only other 2-year fixed term options are: ICICi at 4.1% AER and Coventry BS at 4% AER (but I think that this one is no longer available).
Unless anyone knows of any better deals for a 2-year fixed term bond then I am going to go with the PO.
RR

robbieroy

I noticed today that the Post Office has just withdrawn the option to apply for thier 1, 2 and 3 year growth bonds (Growth Bond Issue 11 ) online.
I applied online yesterday so I wonder what will happen?
Has anyone else had a result in a similar situation?
RR