Subscribe to The Money StopNews Feed

Browse > Home / Banking, Featured / Good news for those with Post Office savings accounts

Good news for those with Post Office savings accounts

October 9, 2008 by admin  
Filed under Banking, Featured

Leave a Comment

Many people in the UK have Post Office savings accounts, with many preferring these accounts because they are part of a trusted name. According to recent reports those with Post Office savings accounts will now be able to enjoy greater peace of mind than ever, and this is as a result of changes to the banking system in Ireland.

Post Office savings accounts are run by the Bank of Ireland, and this means that the changes that have taken place in the Irish banking sector will also affect Post Office savings accounts as well as savings accounts with other Irish bank within the UK, such as branches of the Bank of Ireland or the Anglo Irish Bank. The good news for consumers that have accounts with these financial institutions is that they will be able to enjoy having a greater safety net in respect of their savings than savers that have money with other financial institutions.

The Financial Services Compensation Scheme in the UK offers a 100% guarantee on the first £35,000 of consumers’ savings, and this was only increased following the Northern Rock fiasco last year that saw many people withdraw billions of pounds worth of savings from the bank in the space of a few days. In Ireland the compensation level was previously €20,000, so consumers with Post Office savings accounts or accounts with UK based Irish banks would have to claim some money from Ireland and then the remainder from the Financial Services Compensation Scheme to make it up to the £35,000.

However, the changes in the Irish banking system have seen the compensation level for savings now increase to €100,000, and this equates to nearly £80,000. This means that the savers that have accounts with the Post Office and UK branches of Irish banks will now have an increased safety net on nearly £80,000 of their savings, which is more than double the amount that is covered on savings with other financial institutions. The guarantee will continue until September of 2010.

There are now only two other account types that offer this level of 100% guarantee other than the Post Office and UK branches of Irish banks, and these are the government run Northern Rock and National Savings & Investments. The UK Chancellor, Alistair Darling, has recently announced that he plans to try and increase the UK limit from £35,000 to £50,000 by the end of the year, and the move by the Irish government will put increased pressure on Darling to make this happen.

In a statement the Irish Premier said: ‘The decision has been taken by government to remove any uncertainty on the part of counterparties and customers of the six credit institutions. The government’s objective in taking this decisive action is to maintain financial stability for the benefit of depositors and businesses and is in the best interests of the Irish economy.’

Tags: ,

Related Entries

  • Increased safety for money of Post Office savers
    • As a result of changes to the Irish banking system some savers in the UK, including those with Post Office savings accounts, will see their savings guarantee almost double compared to that of savers with
  • Customers can save for Christmas with the Post Office
    • Over the last few years the Post Office in the UK has diversified into a variety of different areas, and in a recent announced the Post Office has stated that consumers will be able to
  • Many savers could move their money into Irish banks and Post Office
    • Following a change in the Irish banking industry it seems that many consumers in the UK could be looking at shifting their savings into UK branches of Irish banks or into the Post Office in
  • Hedge your bets with Post Office savings bond
    • A new five-year savings bond has been launched this week, offering savers a risk-free route to high returns. The Post Office has announced the launch of the fifth issue of its Fiveyear Saver bond, which
  • Savers may be missing out
    • The recent 0.25 per cent interest rate rise was bad news for borrowers but was more warmly received by savers.The Bank of England's decision to increase the base rate to 5.5 per cent should mean
  • Post Office wants end to aggressive PPI tactics
    • The Post Office is calling for aggressive payment protection insurance (PPI) sales tactics to be stamped out.It follows the news that credit card company Capital One has agreed to pay a fine of £175,000 following
  • Millions to be reliant on credit in 2007 say Post Office
    • New research from the Post Office has shown that one in four of credit card holders will be starting the New Year more dependent on credit than in 2007. Up to 41 per cent of
  • Potential PPI refund
    • Consumers could save themselves large sums of money by seeking a better deal on their payment protection insurance (PPI) for a personal loan.That is according to the Post Office, which says some borrowers may find

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!