We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Is there a risk involved in with investing in foreign Banks like IceSave??help needed
Options
Sunny2good
Posts: 86 Forumite
Hi guys,
i have roughly 15K to put away for a year. I am a basic tax payer. Id rather save with a High Street bank then with foreign banks who i havent heard of.
people suggested Icesave and after doing some research, i am hearing all sorts of things about Ice save bank that it is a risk investing with them as they are an overseas bank. I am getting to hear If you invest in a UK bank that fails, your deposits are covered in full up to £35k. If you invest in an Icelandic bank that fails, your deposits are covered in full up to £16k. IceSave reckon that the savings account is covered by both schemes although the web site says clearly that IceSave is part of an Icelandic bank.
Icesave are paying 6.70% gross AER on maturity and 6.50% gross AER per month for a fixed 1 year term investment. Looking at other options, i came across Abbey's 6.50% gross AER account. How bad is that compared to the offering from IceSave. would anyone tell me how worse off i would be if i £15K with abbey instead of icesave?
what do you guys think about IceSave anyway, just because a bank offers the highest interest rates, then they are not the best people to trust with your money. There are other factors to consider. A bank may be offering the highest interest rates because it is more desperate for funds than other banks. That is just what i think, let me know what you guys think about it
your comments will be appreciated.
Thanks,
Sunny
i have roughly 15K to put away for a year. I am a basic tax payer. Id rather save with a High Street bank then with foreign banks who i havent heard of.
people suggested Icesave and after doing some research, i am hearing all sorts of things about Ice save bank that it is a risk investing with them as they are an overseas bank. I am getting to hear If you invest in a UK bank that fails, your deposits are covered in full up to £35k. If you invest in an Icelandic bank that fails, your deposits are covered in full up to £16k. IceSave reckon that the savings account is covered by both schemes although the web site says clearly that IceSave is part of an Icelandic bank.
Icesave are paying 6.70% gross AER on maturity and 6.50% gross AER per month for a fixed 1 year term investment. Looking at other options, i came across Abbey's 6.50% gross AER account. How bad is that compared to the offering from IceSave. would anyone tell me how worse off i would be if i £15K with abbey instead of icesave?
what do you guys think about IceSave anyway, just because a bank offers the highest interest rates, then they are not the best people to trust with your money. There are other factors to consider. A bank may be offering the highest interest rates because it is more desperate for funds than other banks. That is just what i think, let me know what you guys think about it
your comments will be appreciated.
Thanks,
Sunny
0
Comments
-
You're fully covered to £35k with Icesave. It's just that part of the cover is by Iceland, the remainder by the UK. And Landsbanki have registered a complaint about the apparently wrong comments in the media that should it be necessary, you would wait longer than the UK scheme to be compensated.Sunny2good wrote: »people suggested Icesave and after doing some research, i am hearing all sorts of things about Ice save bank that it is a risk investing with them as they are an overseas bank. I am getting to hear If you invest in a UK bank that fails, your deposits are covered in full up to £35k.Icesave are paying 6.70% gross AER on maturity and 6.50% gross AER per month for a fixed 1 year term investment. Looking at other options, i came across Abbey's 6.50% gross AER account. How bad is that compared to the offering from IceSave. would anyone tell me how worse off i would be if i £15K with abbey instead of icesave?
(6.7%-6.5%) * £15,000 * 80% = £24.
I have ~£20K with them currently. I currently have no plans on moving it elsewhere (except perhaps to pay off a low interest loan or if I decide to buy an equity ISA quicker than I currently plan to.)what do you guys think about IceSave anyway, just because a bank offers the highest interest rates, then they are not the best people to trust with your money. There are other factors to consider. A bank may be offering the highest interest rates because it is more desperate for funds than other banks. That is just what i think, let me know what you guys think about itConjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
No disrespect 'Sunny' but why did you not do a little searching here before asking your question, the "how save is Icesave issue" has been covered in depth over the last few months and all the answers to your questions are in those threads, just do a search on Icesave and you will find plenty of good discussion on the subject.
FWIW I am more than happy to keep a large proportion of my savings in Icesave and am very confident in their safety.
0 -
Abbey are owned by a Spanish bank so that also makes them 'foreign'. Do you worry about investing your money with them?0
-
But Abbey/Cahoot aren't relying on the passport scheme which is what's causing most of the disquiet amongst the more pessimistic corners of the media.Abbey are owned by a Spanish bank so that also makes them 'foreign'. Do you worry about investing your money with them?Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
Abbey are owned by a Spanish bank so that also makes them 'foreign'. Do you worry about investing your money with them?
erm yea i do know they are owned by Satander, but they are a high street bank, with multiple branches who have people in it that i can talk to face to face. IceSave is an internet or a telephone only bank.
anyway, thanks for that, really helped alot.0 -
No disrespect 'Sunny' but why did you not do a little searching here before asking your question, the "how save is Icesave issue" has been covered in depth over the last few months and all the answers to your questions are in those threads, just do a search on Icesave and you will find plenty of good discussion on the subject.
FWIW I am more than happy to keep a large proportion of my savings in Icesave and am very confident in their safety.
nilrem,
i just wanted to get a fresh perspective on things as some of the information i found about this issue was quiet old.
thanks for sharing that you trust them with your money
0 -
Paul_Herring wrote: »You're fully covered to £35k with Icesave. It's just that part of the cover is by Iceland, the remainder by the UK. And Landsbanki have registered a complaint about the apparently wrong comments in the media that should it be necessary, you would wait longer than the UK scheme to be compensated.
(6.7%-6.5%) * £15,000 * 80% = £24.
I have ~£20K with them currently. I currently have no plans on moving it elsewhere (except perhaps to pay off a low interest loan or if I decide to buy an equity ISA quicker than I currently plan to.)
Paul_Herring,
thanks mate. just the information i wanted.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.2K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.2K Work, Benefits & Business
- 599.2K Mortgages, Homes & Bills
- 177K Life & Family
- 257.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards