The Post Office

[Dudley]

I have an investment (albeit less than £50,000) with The Post office on a fixed term basis. Bearing in mind that they are owned by the Bank of Ireland and the current Irish financial crisis, should I be worried?

[factor-fiction]

The Post Office is owned by the Bank of Ireland? Do you have a link?

[sandyRoe]

No. It's subject to UK regulations.

[mike11111]

I wouldn't be too worried, although your investments might be repaid in potatoes, rather than pounds sterling.

[boxtops]

Yes it is factor, my PO credit card is managed by BoI.

[Buenchico]

Not at all. The Irish financial crisis was (in part) caused by the Irish Government injecting money into their banks. The problem now is that, while the banks have got money, the Irish Government hasn't. So (if others hadn't come to the rescue) you would have only needed to be concerned if you were owed money by the Irish Government (either through holding Irish bonds or through having business contracts with government agencies).

Alternatively, you might have needed to be worried if you'd got money invested into a BRITISH bank because, for example, the Royal Bank of Scotland has loaned the Irish Government a massive amount of money.

Chris

[gingejbee]

factor: The Post Office's savings accounts are run by the Irish bank mentioned.

[factor-fiction]

That's right- some accounts at the Post office are from the Bank of Ireland. I was just pointing out that as far as I know it's not the case that the Post Office is OWNED by the BOI.
BOI customers actually get better protection (100,000 Euros) than customers of UK banks (£50,000). However the guarantees are unlikely ever to be needed as I'm sure the govenments would step in to bail out a major bank

[DTCwordfan]

Uk goes to £75000 shortly....you are covered - even now

[dzug2]

I thought the BoI had set up a UK subsidiary and that PO accounts were now (or will be shortly) covered by the UK scheme rather than the Irish???

[Dudley]

Thank you guys, I am re-assured.

[spudqueen]

As of October the financial side of the Post Office (all the savings accounts etc) are owned by Bank of Ireland (UK) Ltd, which is separate from Bank of Ireland.

[trt]

I just came here to ask the same Q Dudley, you saved me the trouble, thanks :-)