post office savings account

vector

Hi, Last week I opened a Post Office online savings account with £1 as it pays a reasonable interest rate for the 1st year. My intention was to transfer my savings from an account on which the 1year bonus has ended but as the post office account is run by the Bank of Ireland i'm now having second thoughts due to the monetary problems Ireland is currently experiencing. Anyone have thoughts or advice on this?

Sceptic001

Post Office savings products are covered by Bank of Ireland compensation arrangements (currently backed by the Irish government). The Bank of Ireland is planning to become covered by UK Financial Services Compensation Scheme from 1st November, subject to High Court approval later this month - see link for full details. http://www.postoffice.co.uk/portal/po/content2?catId=19300232&mediaId=125900776

alanq

"The Bank of Ireland is planning to become covered by UK Financial Services Compensation Scheme from 1st November..."

More accurately the BOI is planning to create a UK subsidiary. It is only deposits with this which will be covered by the UK FSCS scheme. Post Office accounts would be included.

At present the Irish scheme covers €100,000 (c £80,000+) but FSCS only covers £50,000 until the end of the year when it will be increased to the £ equivalent of €100,000 at an exchange rate yet to be agreed. If all goes as proposed the Irish government will guarantee for November and December deposits in the UK subsidiary above £50,000 and below €100,000.
http://www.dailymail.co.uk/money/article-1316054/Post-Office-100-cent-guarantee-extended-savers.html

datostar

Bank of Ireland isn't one of the involved Irish Banks (at present).