Post Office 100 per cent guarantee extended for savers

[TrueBlueTerrier]

The 100 per cent guarantee which savers with Post Office accounts enjoy through Bank of Ireland has been extended.

The deal, backed by the Irish government, was due to expire tomorrow, but will now run until the end of the year.

But savers in fixed-rate bonds with the bank will enjoy the Irish government's 100 per cent guarantee on their savings until they mature.

Extended: The 100% guarantee deal with Post Office due to expire tomorrow will now run until the end of the year.

The Bank of Ireland is transferring its UK banking operation into a new UK subsidiary - Bank of Ireland (UK) plc - which it expects to be up and running by November 1.

At this time, savers were expected to have their cover limited to the £ 50,000 offered under the UK Financial Services Compensation Scheme.

But once Bank of Ireland (UK) is in operation, they can claim the first £50,000 from the UK scheme if the bank goes bust, and any balance over that from the Irish government until the end of the year.

From next year, the UK scheme limit will rise to € 100,000 (£83,000).

Anyone in Bank of Ireland easy- access accounts will have their cover limited to this amount.

Savers who buy National Savings & Investments ( NS& I) products through the Post Office are unaffected by these changes. Their savings continue to enjoy 100 per cent cover by the UK Government.


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