# An Post gaining ground in the savings market



## kdoc (18 Jul 2011)

According to this article in today's Independent, people are moving to State savings in increasing numbers.

http://www.independent.ie/business/irish/an-post-now-holds-10pc-of-savings-as-banks-lose-deposits-2823945.html


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## Lightning (19 Jul 2011)

This is the irony of all irony's 

Irish people think a default is looming so they are placing their savings in the Irish national debt. 

I think only a small portion of the general public realise "Post Office Savings" = NTMA Savings = Irish soverign debt. 

I think many people also fail to realise that "Post Office Savings" are owned by the same people who own the banks. The state.


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## Brendan Burgess (19 Jul 2011)

Hi Ciarán

Got to agree. Lots of people have told me that they are moving their money from the banks into the Post Office for safety reasons. I thought that I had just met a few odd people. But it seems to be widespread.


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## farmerette (19 Jul 2011)

was told the other day that thier is an increased interest in prize bonds , same deal


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## The Ghoul (19 Jul 2011)

CiaranT said:


> This is the irony of all irony's
> 
> Irish people think a default is looming so they are placing their savings in the Irish national debt.
> 
> ...


That's your opinion, I think people who are more informed than you think they are. NTMA products are probably at least as safe as savings in any Irish bank.

As per your own Key Post, interest rates from some of the NTMA products are very competitive. If there are DIRT or other tax changes in the next budget, they could become even more attractive.

In my experience, the customer service from An Post is far superior to the customer service from the banks. The procedure for withdrawing early from fixed term NTMA products is clear and An Post staff are efficient and professional.

Whereas if you try to withdraw your money early from a bank fixed term deposit account no doubt the bank staff will lie, fudge, waffle, stall, delay to try to keep your money. 

Even *opening* a deposit account in a bank can be a painful process as they ask all manner of irrelevant personal questions or try to persuade you to invest in a tracker bond instead of the account that you want. There is none of this with An Post. 

Also, what's the alternative to NTMA products for risk averse savers. The sort of people who put money in deposit accounts are not the sort to gamble on gold or equities.

Maybe an offshore account in euros or a different currency? Interest rates will be low. Tax may be high and a hassle to sort out. If you choose a different currency you're now in the area of currency speculation. And nobody knows what will happen in the event of a "doomsday scenario". An Irish default could result in contagion that affects the country/bank that you put you money in. Nobody knows how the polictians will react or what laws will be passed.


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## Bobby1 (19 Jul 2011)

The Ghoul said:


> That's your opinion, I think people who are more informed than you think they are. NTMA products are probably at least as safe as savings in any Irish bank.
> 
> As per your own Key Post, interest rates from some of the NTMA products are very competitive. If there are DIRT or other tax changes in the next budget, they could become even more attractive.
> 
> ...



Think CiaranT's point is more to do with the perception people have that An Post is somewhat "safer" then Irish banks, when in they are not, all are owned by the same owner...the state!

Account openings can be a painful process in banks because of all the regulation imposed upon them also... they cannot sell a term deposit of 12 mths or greater without either offering a form of review or advice session, or getting the customer to state they were offered a review service and declined it, An Post, not regulated by the Central Bank as a deposit broker do not have to do this...which in my view is a bit bonkers


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## TSThomas (19 Jul 2011)

People trust the Post Office, they don't trust Banks (anymore). I don't think there is anything more to it than that for many people.


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## Fatphrog (19 Jul 2011)

Or maybe some of them are putting their money into An Post for patriotic reasons since they are committed to Ireland. This was suggested by a celebity economist a few months ago.


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## RMCF (25 Jul 2011)

Perhaps they think that if there is any 'burning' to be done in the case of a default happening, then a Gov Savings Scheme will be further down the list than some of the other places they could put their money?


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