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An Post Savings Bonds/Certs - Are they safe?

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  • 27-09-2010 2:37pm
    #1
    dlambirl
    Registered Users Posts: 2,062 ✭✭✭


    I have about some money that I want to put away safely, yet still make it work for me. I would like to put it in the An Post Savings Bonds/Saving Certs. Are these save??


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    #2
    eagle_i
    Closed Accounts Posts: 89 ✭✭eagle_i


    An Post Savings Bonds/Certs are state guaranteed. So it really depends on your perspective of the present Irish Government, do you believe they will honour the guarantee if the whole country goes belly-up? Sorry that is only scare mongering, in short the answer is yes they are safe. Please see this link to the NCA's website, which discusses the risk factor of all investments and the state guarantee schemes.


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    #3
    pathway33
    Registered Users Posts: 2,229 ✭✭✭pathway33


    bump. Are they still safe? There will probably be a bank default / restructuring of debt in 2013. A bank default means An Post savings are still pretty safe. A sovereign default means An Post savings may not be safe.

    Is it possible for the government to set it up so that ordinary depositors, cert / prize bond holders in An Post are not burnt while still defaulting on sovereign debt? In the same way INBS and Anglo depositors lost nothing.

    Thanks


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    #4
    Wheelnut
    Registered Users Posts: 977 ✭✭✭Wheelnut


    No one knows the answer to that, Pathway.

    The post Office are agents for the NTMA and when you buy a bond you buy part of the national debt, so you become a bondholder. If they decide to go with "burning the bondholders" you're banjaxed.

    On the other hand, Post Office bond/cert holders are generally the people who have been prudent enough to save or have put away a lump sum for their retirement. These are activities that any government would encourage because it takes a load off the public purse. So the government would shoot themselves in the foot by burning Post Office savers.

    So it may come down to whether the "default" decision is made on a fiscal or a political basis.


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    #5
    Zipppy
    Registered Users Posts: 2,054 ✭✭✭Zipppy


    Wheelnut wrote: »
    The post Office are agents for the NTMA and when you buy a bond you buy part of the national debt, so you become a bondholder. If they decide to go with "burning the bondholders" you're banjaxed.
    Jeez...hadn't looked at it that way before.....I've money in An Post deposit plus account.....maybe under the matress is a better option :(


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