Post Office savings guaranteed by Irish Deposit Protection Scheme

by Gill Montia

Story link: Post Office savings guaranteed by Irish Deposit Protection Scheme

Savers with the Post Office are now covered by the Irish government’s guarantee scheme.

The move has been made possible because the Post Office provides financial products through a partnership with the Bank of Ireland.

More than 500,000 account holders will benefit from the new arrangement; the Irish Deposit Protection Scheme guarantees all savings, unlike the UK’s Financial Services Compensation Scheme, which will pay out up to £50,000 per individual in the event of a collapse.

In the financial turmoil of last September the Irish government announced that it would guarantee all savings held in Irish banks until September 2010.

The scheme covers Allied Irish Bank, Bank of Ireland, Anglo Irish Bank, Irish Life and Permanent, Irish Nationwide Building Society and the Educational Building Society.

At the time, governments of other EU member states, including the UK, heavily criticised the move on competition grounds, as they had only limited guarantees in place.

However, the Irish economy has since deteriorated, making some analysts anxious about the viability of its commitment to savers.

Post Office accountholders have already been advised of the change by letter.