Kaupthing Edge+Rubbish bank

OOps. Just opened an account with them, because I was worried having more than 35k in Principality.
I haven't actually put any money in yet; was about to in a day or two,
You've got me thinking now.

You know what. I think life was much simpler when there was less choice.
I have started on this rollercoaster of chasing interest rates around.
Before, I just had my savings somewhere, and just forgot about it.

This 'progress' is doing my head in.

I like many others here have had no problems with the accounts. Any minor hitches have been quickly sorted out - and you get hitches with all banks, not just KE.

Jake'sGran wrote: »

This bank do the weirdest things. Their statements are laid out in a most peculiar way. I had trouble with them deducting tax from monthly payments but this was then sorted in May. In August I transferred a large amount to their 12 month fixed rate and they have shown on the statement that tax will be deducted from the interest amount in 2009. They say they did not get my R85 until Sept 3rd even though they have been paying interest gross since May on my ordinary account. Can't do with the hassle. I have decided to dump them. To get my tax back I now have to complete a tax return but when? The interest will not be paid until Aug 09 unless they come to their senses in the meantime. They can't possibly have sent the money to the Revenue.

The R85 must be completed for each account, you should not expect KE to register the fixed rate for gross interest because your other account is. If the monthly interest on your other account was incorrectly taxed you must still claim it back from HMRC unfortunately, maybe the tax paid on interest is sent by banks to HMRC on a monthly basis.

For the fixed term account, as the interest is only payable on maturity in 2009 they have plenty of time to process the form.

batleyboy wrote: »

Just opened account with Kaupthing, about to deposit some money in but mentioned it to my FA who told me to reconsider because he had over heard at an investment meeting that Kaupthing were struggling for cash, hence the good interest rates and if they went belly up your £35k would be protected but could be awkward to access/ recover

I'm guessing the reference to the £35k being awkward to recover is because they think Kaupthing opted for the 'passport exemption'. If so your FA is wrong. They did not and the £35k is entirely guarenteed by the UK financial services compensation scheme, the same as any UK bank.

They are confusing it with the other Icelandic bank, Icesave. Given that error I doubt any of their other rumours are worth taking any notice of.

There was a scare about the Icelandic banks going under back in March/April but that seems to have gone away since. With hindsight it sounds like speculators were exagerating the dangers to make a quick buck. Famous last words maybe, but I have money with Icesave and feel relaxed.

One of the best companies I've ever dealt with, what a ridiculous KE bashing thread - you'll find 99% of people here very happy with them.

I'd highly recommend them.

As for "pumpndump's" advice, I have a whole office of business colleagues who also save with them.

If you have a problem, why not ring them up, rather than moan, they sort things out instantly over the phone, answering calls within 2 rings.

As for the other posts: KE aren't in trouble, there are so many scare reports in the media about Iceland, which is comic considering the mess UK banks are in. What a ill informed FA to suggest such nonsense, perhaps steering you towards a more lucrative commission based investment? - Edited to add - Clearly as Jem16 mentions below a tied financial adviser, not an IFA.

Get a grip people and stop scaremongering.