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 order to increase the security of their heard earned money. Earlier this month the Irish government changed regulations so that all of its banks offered a 100% guarantee on all savings. The Post Office savings account is run by the Bank of Ireland, so this too will benefit from the increased safety net.

One industry officials said that following the announcement they were inundated with calls. Stephen Ford, director of City investment group Brewin Dolphin, stated: ‘Yesterday we were inundated with calls from clients asking not about their share portfolios but where they should be putting their cash.’

UK branches of Irish banks such as Allied Irish and the Bank of Ireland found that customers were flocking to the branches to try and open accounts and enjoy extra protection on their savings.

The majority of people were using the phone and going online to try and set up savings accounts at Irish banks, according to recent reports. Mr Ford went on to state: ‘All our clients are asking if they should move their money. They are aware that basically Northern Rock and the Post Office are the only fully underwritten banks in this country. The Irish banks now look to be the safest in Europe.’

The move by the Irish government has now put increased pressure on Downing Street, with consumers calling for the UK government to also offer the same sort of guarantee. However, some officials have said that this will not happen, although the government is looking to increase the savings guarantee safety net from £35,000 to £50,000 by the end of the year.

Tags: irish government, Brewin Dolphin, pressure, bank of ireland, Brewin, uk