Commenting on the Post Office's forthcoming move to the FSCS

Published:

27/10/2010

Topic:

Press Release,Savings

Commenting on the Post Office's forthcoming move to the FSCS, Kevin Mountford, head of banking at moneysupermarket.com said:

"A joint venture between the Bank of Ireland and the Post Office, means there are currently around two million UK depositors protected under the Irish Deposit Protection Scheme. From 1st November 2010, a substantial part of the Bank of Ireland's UK banking business, including the Post Office, is moving to a new subsidiary, meaning UK customers will now be protected under the UK's Financial Services Compensation Scheme (FSCS).

"There is a slight cloud hanging over the Irish economy at the moment, so it's encouraging to see the Bank of Ireland taking positive steps to reassure its UK customers that their savings are secure and now under written by the UK Government. The FSCS actually gives a lower level of protection than the Irish scheme as only the first £50,000 is protected per saver, per institution or £100,000 if the account is in joint names under the FSCS. In Ireland, due to a Government guarantee all savings are protected until the end of the year. However, existing Post Office savings customers will continue to receive this extra protection until the end of December. New customers should ensure they don't invest more than £50,000 as the level of protection offered to them is essentially being reduced from 1st November.

"That said there is good news for all UK savers because the amount guaranteed by the FSCS is due to rise next year to €100,000, a move which is aimed at creating parity across the various European depositor schemes. In the meantime, savers with over £50,000 in the bank will need to ensure that their money is spread between saving accounts, taking care to avoid using two products from the same provider - as only £50,000 (£100, 000 for joint accounts) protection is guaranteed from each institution. Consumers should check which banking group their accounts lie with, as two seemingly distinct providers might fall under the same banking umbrella."

 

-ENDS-

Download This Press Release

Download as RTF

Related Links

Related Resouces