Post Office(Bank of Ireland) - FSA

brianh

Hi

I'm considering investing in the PO Inflation Linked Bond. At the moment Bank of Ireland (UK) is protected by the FSA £85k guarantee. But as this bond lasts 5 years, am I at risk if the FSA withdraws their license during that time especially as B of I have been accused of deceiving FSA to get the license?

Any thoughts?

Brian

ses6jwg

http://www.thisislondon.co.uk/standard/article-24014373-bank-of-ireland-used-post-office-savings-of-22-million-people-to-prop-itself-up-during-credit-crunch.do

oldvicar

The words "At the moment Bank of Ireland (UK) is protected by the FSA £85k guarantee", and it is because I think it entirely possible this could change, it is the main reason I am not investing in these accounts.

I wasn't aware of any accusations of deceit or threats of licence withdrawal. Rather I think it possible that BoI (i.e. the parent) may bring its subsidiiary the independednt BoI(UK) bit back in house during the term of the bond, and I would rather not have to then depend on the Irish guarantee scheme.

opinions4u

brianh wrote: »

Hi

I'm considering investing in the PO Inflation Linked Bond. At the moment Bank of Ireland (UK) is protected by the FSA £85k guarantee.

It's an FSCS protection. Not FSA.

But as this bond lasts 5 years, am I at risk if the FSA withdraws their license during that time especially as B of I have been accused of deceiving FSA to get the license?

I can't see savers being left unprotected.

But there is an alternative.

http://www.bmsavings.co.uk/savings/index-linked-savings/

oldvicar

I've got the BM Savings one.

There are other alternatives with some sort of RPI-based return - all a bit different, but think they currently include:

Yorkshire/Clydesdale banks

Legal and General (a deposit held with RBS for FSCS purposes), available via Northern Rock (and rumour has it soon to be Nationwide too)

And who knows, if you can wait a while the Daddy of them all, NS&I might make a comeback next spring.