UK holders of Post Office savings accounts will now have their deposits protected up to €100,000 as a result of a new statutory limit implemented by the Irish Government, because the Post Office operates under the Bank of Ireland’s banking licence.

The limit for the deposit guarantee scheme has now been increased from €20,000 to €100,000, or approximately £78,700, for customers of savings accounts which fall under the Bank of Ireland’s rules.

Announcing the decision, the Irish Government’s Minister for Finance, Brian Lenihan TD, said “I want it to be known that the Government is confident about the strength and resilience of the Irish financial system. The Government is committed to the stability of our financial system, so that money placed with an Irish credit institution would not be at risk.”

Previous to this decision, Britons with a Post Office savings account had the first £35,000 of their deposits guaranteed under the UK Financial Services Compensation Scheme, but they can now enjoy an extra £43,700 worth of protection.

Apart from those who save with National Savings & Investment, who have 100 per cent of their deposits protected by a Government guarantee, holders of Post Office savings accounts are now the most comprehensively covered savers in the UK.

Commenting on the new guarantee, director at Fairinvestment.co.uk, David Doulton, said “The news offers reassurance for Post Office savings account holders during this period of volatility. As savers become increasingly concerned about safety, a guarantee of more than double the UK amount will undoubtedly be welcome.”

© Fair Investment Company Ltd