Is your money safe in Irish banks?

Tuesday, 23 November 2010 12:00

When the last global financial crisis was in full swing there was a major panic amongst UK savers to find out if their savings were safe and guaranteed by the banks.

It seems that the savers amongst us are a little more conditioned to problems as there does not seem to be the same level of panic over whether consumers' money is safe in the Irish banks.

There is a good reason for this. The Irish Deposit Guarantee Scheme covers money deposited in the Irish Republic up to ?100,000. It seems that the fall of the banks in 2008 concentrated industry and legislative minds to protect savers.

In the UK, The Bank of Ireland provides savings products for the Post Office and overall more than two million UK customers invest in Irish banks. These savers deposits are covered by the UK's Financial Services Compensation Scheme (FSCS). They are protected up to the value of £50,000 at the moment, but in addition to this Post Office savers receive Ireland's "eligible liabilities guarantee", which offers extra protection above £50,000 until June 30th 2011.

The rules are slightly different if you have a fixed rate bond. If you took one out with the Post Office after 11th January 2010, the amount will be covered by Ireland's guarantee scheme until it matures. If you deposited money into a bond before this date you will be covered for values up to £50,000.

So, yes, unless you have invested a very large amount in just one institution your money is safe.

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