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Post Office Web Saver Account - Safe?

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We've just opened an Online Saver account with the Post Office and are about to move circa £50k into it however, the account is actually with the Bank of Ireland UK.

Whilst I understand that the account is covered by the FSCS scheme, up to £50k, looking at the current situation in Ireland, I'm not convinced that this is the time to be moving funds into any Irish bank.

Opinions please?

Mods, whilst this may be OT, please leave on main board for a couple of hours as I believe this is relevant to those who have deposits or STR funds with the PO, thanks.

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Opinions please?

Do you really want to find out how many forms and time it is going to take to go through the compensation scheme.

I would not put any money into it.

Edited by VeryMeanReversion

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If it all collapses investing £50k in beans would be a good buy. Food is a very trade-able commodity in a barter economy.

If this is all your savings surely you would be better breaking it up spreading it around a bit?

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When I last looked, the 50K limit was just one of a number of hurdles, the biggest being the £4.08 (or so) Billion limit for all claims.

so a £140 billion bust?....thats a payout of about £1500 each.

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If the bank does go under then you will have your money tied up until the government releases it (even when being streamlined that's going to be longer than instant access) and the interest will not be paid at the time.

I suspect it's a long shot that the place will fail, but I would wait until the Irish deal is sorted before depositing.

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But then I have to say, I wouldn't. But then I no longer keep any money in any bank or building society other than for expenses. I keep it in various broker and spread betting accounts ready to flee at the press of a button. This thing is not over in my opinion. But then I might be 'extreme'.

I am of the same opinion as you and was actually thinking about sticking some money in PayPal / other online (non bank) accounts and maybe with a currency trading account but can you explain a little more what broker account options there are out there and how to know they aren't putting their customers money into he same dodgy accounts we are trying to avoid each night?

Nat West online instant access gives you about 2.8% and less worries for now.

Natwest is owned by RBS and they are in up to their necks in the Irish mess hence why George is looking to directly loan to the Irish as I don't think we can afford to cover RBS going bust - it's "too big to fail" :unsure:

Edited by GeordieAndy

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Cheers for that as that gives me enough to start my own research in order to make my own informed decision. Scary times and even worse when you have worked so hard and finally have some savings to realise they could all be wiped out in hours with a crash / bank run :o

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I'm not qualified to advise on which broker is best.

I have to say I liked Hargreaves Lansdown the best when I looked into it because when I was checking this all out 1. they did not bet on their own account (unlike any bank, Fidelity, life insurers L&G, Standard Life etc etc). 2. They spread any money not invested in your account amongst 5 UK blue chip ('too big to fail') banks overnight. Any money invested is 'yours'. They also had a range for sipps, isa, fund accs etc. I don't have a specific forex account.

What they did with that money was for me more important than how fast, how cheap etc etc.

so you are saying that in a major bank run, involving the big banks, that money invested in stocks and commodities is safe?

is it realisable?

can you buy bread with the promise of payout from a fund?

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so you are saying that in a major bank run, involving the big banks, that money invested in stocks and commodities is safe?

is it realisable?

can you buy bread with the promise of payout from a fund?

I hear what you are saying however I already have cash and PMs (40%) but am not comfortable squireling all my savings into family gardens / safes etc so I need somewhere else to protect my hard earned savings so have you got any other ideas?

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Are you mad? We've known each other a long time Bloo Loo (some say too long :))

No - you would have to try and place your bets accordingly. e.g. not safe = perhaps invest in a gold etf, invest in UUP the dollar bullish fund, (ditto yen, chf), or a short stock etf.

Then pray your winnings are actually paid out. There is a limit to which even I can conceive in terms of bearishness and if it comes down to guns and protecting my physical gold, I think I'd rather commit suicide tbh.

I was trying to make the point you have now made, there is no SAFE place for funds.

I too have funds in other than money, although, Im not rich like you.:rolleyes:

The point about surviving to the stage after a destruction of currency is having something that you can trade afterwards.

I wonder if my funds would survive (I use some Fidelity funds for savings, and my pensions are in funds too)....

I found that one fund ( widely publicised) claiming to be "safe" had in fact bought into MBS....they were forced to find cash to make it back up when MBS started to crash, but what if there was no fund with which to make it up?

indeed, being a third hand investment, how could I cash it up?...who would be paying the fund to even exist while the crash happened?

Course, its a bit like the old films of nuclear holocaust....the guidance says...if you are injured, proceed to your nearest hospital where you can get emergency treatment...failing to mention the Hospital is gone, and even if there, Doctors will be tending there own and be as injured as you are!.

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Natwest is owned by RBS and they are in up to their necks in the Irish mess hence why George is looking to directly loan to the Irish as I don't think we can afford to cover RBS going bust - it's "too big to fail" :unsure:

But Nat West trades under a separate licence and therefore has its own cover under the FSCS.

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But Nat West trades under a separate licence and therefore has its own cover under the FSCS.

Do you actually think the Government can guarantee anyone anyways under the FSCS?

I am of the opinion it is all just hot air and the moment there is (not if) a bank run weekly withdrawal limits and a long bank holiday will be imposed on us so they can try and work out what to do, all whilst the £ is devaluing and Soros etc are betting on our demise :o

Edited by GeordieAndy

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Do you actually think the Government can guarantee anyone anyways under the FSCS?

I am of the opinion it is all just hot air and the moment there is (not if) a bank run weekly withdrawal limits and a long bank holiday will be imposed on us so they can try and work out what to do, all whilst the £ is devaluing and Soros etc are betting on our demise :o

If we got in that mind set then nobody would sleep at night. At some point in this society you have to trust someone.

Lets draw comfort from the fact that in the last banking crisis all normal savings were protected 100%.

I am careful but I try not to be paranoid.

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Lets draw comfort from the fact that in the last banking crisis all normal savings were protected 100%.

I am careful but I try not to be paranoid.

  • £50,000 savings were supposedly "protected" not 100%

  • You say paranoid I say suspicious ;)

Edited by GeordieAndy

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Yes I looked into the make-up of the various safe 'cash funds' when I read that standard life customers were going to have to take a haircut because of their exposure.

I was pleased to see that L&G cash fund had no exposure to MBS. But what I did find was that they were very heavily exposed to the precarious Irish banks.

A series of letters ensued. Classic rants I have known....:lol: (I was a single man Irish bank run at the time!). A senior manager at L&G rang me (unheard of) to basically inform me 'off the record' that they were reducing their exposure. The fund manager no longer works on the fund either I noticed. And suffice to say, they did not move fast enough to keep my business. It's not their money, see. They also bet on their own account along with all the other assurers to try and boost returns and that put me off.

347txqf.jpg

there you have it.

PROOF that they KNEW about the issues.....the main one being that the IRISH GOVERNMENT GUARANTEE was impossible to fulfil in the event of need.

so WHY are they still invested ( By THEY, I mean the exposed banks).

there can only be one reason...the speculation on higher rates and the sure knowledge that the Government locally will pay out their ransomm.

One bailout leads to another...they cant ALL be bailed out...indeed, they dont need to be if BANKRUPTCY is enforced the DAY the bank IS bankrupt.

which was 3 years ago for many banks.

so here we are, on the end of ANOTHER bailout, bigger and better, and this time, there are 4 countries at risk.

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  • £50,000 savings were supposedly "protected" not 100%

  • You say paranoid I say suspicious ;)

I'm sure I remember that, during the crisis, Gordon Brown said all savings were protected .

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I'm sure I remember that, during the crisis, Gordon Brown said all savings were protected .

he also said he'd saved the world and abolished boom and bust

I consider his credibility in such matters to be slightly beneath the local nutter in the pub who insists he has been abducted by aliens and spends his evenings dribbling into a shandy while rocking back and forth in the corner.

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Well what else can one do apart from spread it out in lots of less than £50,000 and avoid obviously risky investments.

Its relatively easy if you have say £50,000, but in excess of say £250,000 you have to do something with it to avoid the corrosive effects of inflation.

Did I not read that the FSCS is going up to £100,000 at the end of the year.

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Well what else can one do apart from spread it out in lots of less than £50,000 and avoid obviously risky investments.

Its relatively easy if you have say £50,000, but in excess of say £250,000 you have to do something with it to avoid the corrosive effects of inflation.

Did I not read that the FSCS is going up to £100,000 at the end of the year.

lucky for the people then that 99% dont have 50K stashed.

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so you are saying that in a major bank run, involving the big banks, that money invested in stocks and commodities is safe?

is it realisable?

can you buy bread with the promise of payout from a fund?

The point that strikes me about your statement is that you are tacitly conflating two things : stocks+commodities and funds.

Funds can be impacted by all kinds of counterparty risks, even if they are invested in assets that benefit from whatever turmoil is going down.

Stocks unavoidably have counterparty risks, but they do have their own money-making ability (provided their products services actually have a demand), and it's that ability you have a share of when you hold individual stocks. Commodities? Well, they just "are"(provided they don't spoil). As with stocks, demand will determine whether they have any tradeable value at any point in time.

When I last looked, the 50K limit was just one of a number of hurdles, the biggest being the £4.08 (or so) Billion limit for all claims.

so a £140 billion bust?....thats a payout of about £1500 each.

What's all that about Bloo? Is it a limit as a consequence of a compensation pot size (limited by the levy size) or what?

Edited by Sledgehead

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The point that strikes me about your statement is that you are tacitly conflating two things : stocks+commodities and funds.

Funds can be impacted by all kinds of counterparty risks, even if they are invested in assets that benefit from whatever turmoil is going down.

Stocks unavoidably have counterparty risks, but they do have their own money-making ability (provided their products services actually have a demand), and it's that ability you have a share of when you hold individual stocks. Commodities? Well, they just "are"(provided they don't spoil). As with stocks, demand will determine whether they have any tradeable value at any point in time.

What's all that about Bloo? Is it a limit as a consequence of a compensation pot size (limited by the levy size) or what?

sure, thats why I seperated the items.

but in a general monetary collapse, and we are thinking a sort of universal collapse here, not just local, then what is anything worth.

the shares in firms would be worth what if the firms cant trade, a at consumer level and b at stock level?

same with commodities....I can buy a can of beans and use that as barter, but a fund or stock in the beans market???

I like to think of the difference between a physical...lets say lead rather than the G word, and a fund trading in lead, or a website claiming to have MY lead stashed. which is the most reliable...well, it must be the lead in my pocket!!

the pot size for compo...well, bearing in mind ALL money comes from you and me, not governments, and we all have what...£10,000 debt as a nation per person ( cant remember the figure), how can we pay compo to everyone is the currency collapses and banks are suffering a general run...each of is going to be short £10K

It cant work.

so the PTB must keep the illusion going.

Im feeling depressed now.

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