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!
MoneySavingExpert.com: Latest Kaupthing and Icesave News
Options
Former_MSE_Dan
Posts: 1,593 Forumite
Hi folks,
I know the last thing we probably need here is another thread, but as you all know this has been moving very fast over the past few days.
The Are your Savings Safe? guide has been updated regularly has the news has evolved, and I wanted to post the latest info up here too. I hope this helps clear up any confusions that still exist.
If there any further big developments i'll post them below.
STOP PRESS. Updated 10.00pm Thurs 9 Oct. Kaupthing Edge savings bought by ING Direct
Yesterday, the savings held in Kaupthing Edge accounts were bought by Dutch bank ING Direct, as have those in Heritable Bank (which was part of Landsbanki, which also owns Icesave). This was widely reported, then confirmed by the Treasury in a statement at lunchtime. It said:
"Kaupthing Edge deposit business has been transferred to ING Direct, a wholly-owned subsidiary of ING Group, which operates through its branch in the UK. ING Direct is working to rapidly ensure that it is business as normal for all customers."
This means there is no need for Kaupthing Edge customers to claim money from the FSCS, savings will simply transfer to be adminstered by ING. Read the full statement
How will this money be protected?
After uncertainty on Wednesday, ING Direct have now confirmed that ex-Kaupthing Edge savers will now be protected under the Dutch Investor Protection Scheme.
This means in the unlikely event that ING Direct goes bust, 100% of the first €100,000 (around £78,000) will be guaranteed. This would have to be claimed from the Dutch authorities.
STOP PRESS. Updated 10.30pm Thurs 9 Oct. ALL Icesave money guaranteed by UK government.
Icesave is reported to have gone into technical receivership, meaning its assets have been taken over by the Icelandic government and it has effectively been nationalised (like Northern Rock was), see this FT article. It's likely it will be declared insolvent in the near future.
Crucially, on Wednesday, Chancellor Alastair Darling said that ALL cash in Icesave will be guaranteed by the UK government i.e. not just the first £50k. This has now been confirmed by an official Treasury statement, including the following:
Plus, if you have money in an Icesave cash ISA, it is very likely that it will retain the tax-free ISA status. The Treasury has said:
This is also what happened with Northern Rock. Read the full statement, and all updates will appear here and be included in the free weekly email.
What has happened so far?
On Tuesday 7 Oct, the bank stopped withdrawals, that doesn’t mean it is now bust, though at very best it's probably a 50-50 likelihood. Aside from the Chancellors pledge, here are the crucial points.
There is no finalised procedure set up yet, and as there hasn't been a pay out of this scale from the FSCS before there's a fair bit of uncertainty. It's likely the FSCS will contact everyone who had savings in Icesave, sending an application form for you to return with your details. The FSCS Consumer page is being updated with news, plus all new details will appear here and in the weekly email.
I know the last thing we probably need here is another thread, but as you all know this has been moving very fast over the past few days.
The Are your Savings Safe? guide has been updated regularly has the news has evolved, and I wanted to post the latest info up here too. I hope this helps clear up any confusions that still exist.
If there any further big developments i'll post them below.
STOP PRESS. Updated 10.00pm Thurs 9 Oct. Kaupthing Edge savings bought by ING Direct
Yesterday, the savings held in Kaupthing Edge accounts were bought by Dutch bank ING Direct, as have those in Heritable Bank (which was part of Landsbanki, which also owns Icesave). This was widely reported, then confirmed by the Treasury in a statement at lunchtime. It said:
"Kaupthing Edge deposit business has been transferred to ING Direct, a wholly-owned subsidiary of ING Group, which operates through its branch in the UK. ING Direct is working to rapidly ensure that it is business as normal for all customers."
This means there is no need for Kaupthing Edge customers to claim money from the FSCS, savings will simply transfer to be adminstered by ING. Read the full statement
How will this money be protected?
After uncertainty on Wednesday, ING Direct have now confirmed that ex-Kaupthing Edge savers will now be protected under the Dutch Investor Protection Scheme.
This means in the unlikely event that ING Direct goes bust, 100% of the first €100,000 (around £78,000) will be guaranteed. This would have to be claimed from the Dutch authorities.
STOP PRESS. Updated 10.30pm Thurs 9 Oct. ALL Icesave money guaranteed by UK government.
Icesave is reported to have gone into technical receivership, meaning its assets have been taken over by the Icelandic government and it has effectively been nationalised (like Northern Rock was), see this FT article. It's likely it will be declared insolvent in the near future.
Crucially, on Wednesday, Chancellor Alastair Darling said that ALL cash in Icesave will be guaranteed by the UK government i.e. not just the first £50k. This has now been confirmed by an official Treasury statement, including the following:
Plus, if you have money in an Icesave cash ISA, it is very likely that it will retain the tax-free ISA status. The Treasury has said:
-
"
This is also what happened with Northern Rock. Read the full statement, and all updates will appear here and be included in the free weekly email.
What has happened so far?
On Tuesday 7 Oct, the bank stopped withdrawals, that doesn’t mean it is now bust, though at very best it's probably a 50-50 likelihood. Aside from the Chancellors pledge, here are the crucial points.
- The bank is still operational.
- No compensation arrangements have been triggered (this only happens if the bank isn’t still operational).
- If compensation arrangements are triggered it will therefore be after the new £50,000 level introduced today, though the Chancellor has now guaranteed it all.
- All UK savers are thus techncially protected up to £50,000 per person in Icesave (£100,000 for joint accounts).
- The first €20,000 (this may’ve been upped to €50,000 on some reports of a European meeting on Tuesday) should come from the Icelandic compensation scheme, but in the event that Iceland can't meet its obligations then the UK government will provide the cash.
- If a claim is needed, it will probably involve filling out just one form to the FSCS, you would not have to write to Iceland. If that does happen, full details and any necessary template letters will of course be included here.
- VERY IMPORTANT. To ensure you have a record of the money in there, and hopefully smooth out any compensation procedure, log into Icesave immediately and print out your current statement.
There is no finalised procedure set up yet, and as there hasn't been a pay out of this scale from the FSCS before there's a fair bit of uncertainty. It's likely the FSCS will contact everyone who had savings in Icesave, sending an application form for you to return with your details. The FSCS Consumer page is being updated with news, plus all new details will appear here and in the weekly email.
Former MSE team member
0
Comments
-
Hey folks,
A little bit of this has changed now so these are the latest stop press notices. We are now working on a specific Icesave/Kaupthing article, which will appear when it is done!
KAUPTHING EDGE
STOP PRESS. Updated 6.00pm Thurs 9 Oct. Kaupthing Edge savings bought by ING Direct
Yesterday, the savings held in Kaupthing Edge accounts were bought by Dutch bank ING Direct, as have those in Heritable Bank (which was part of Landsbanki, which also owns Icesave). This was widely reported, then confirmed by the Treasury in a statement at lunchtime. It said:
"Kaupthing Edge deposit business has been transferred to ING Direct, a wholly-owned subsidiary of ING Group, which operates through its branch in the UK. ING Direct is working to rapidly ensure that it is business as normal for all customers."
This means there is no need for Kaupthing Edge customers to claim money from the FSCS, savings will simply transfer to be adminstered by ING. Read the full statement.
How will this money be protected?
After uncertainty on Wednesday, ING Direct has now confirmed that ex-Kaupthing Edge savers will now be protected under the Dutch Investor Protection Scheme.
This means in the unlikely event that ING Direct goes bust, 100% of the first €100,000 (around £78,000) will be guaranteed. This would have to be claimed from the Dutch authorities.
Did you attempted to transfer cash out before it went bust?
A large number of MoneySavers are worried that savings they attempted to transfer from Kaupthing to other accounts in the past few days, either by BACS or CHAPS, now appears to be missing from both Kaupthing and the destination account.
We have spoken to both the FSCS and APACS, the payments organisation, and both are very confident this money will be repatriated to your Kaupthing (now ING Direct) accounts. There is no final confirmation on why the money is currently floating about the ether, but first signs are that the CHAPS system itself is still working fine and the money is still residing with Kaupthing.
APACS also said that any charges for CHAPS transfers (usually around £20) are deducted from the money that is transferred, not actually charged on top as fees. Therefore when the money gets reunited with you, they would expect it to be the full amount.
ICESAVE
STOP PRESS. Updated 6.00pm Thurs 9 Oct. ALL Icesave money guaranteed by UK government.
Icesave is reported to have gone into technical receivership, meaning its assets have been taken over by the Icelandic government and it has effectively been nationalised (like Northern Rock was), see this FT article. It's likely it will be declared insolvent in the near future.
Crucially, on Wednesday, Chancellor Alastair Darling said that ALL cash in Icesave will be guaranteed by the UK government i.e. not just the first £50k. This has now been confirmed by an official Treasury statement, including the following:
Plus, if you have money in an Icesave cash ISA, it is very likely that it will retain the tax-free ISA status. The Treasury has said:-
"
This is also what happened with Northern Rock. Read the full statement, and all updates will appear here and be included in the free weekly email.
What has happened so far?
On Tuesday 7 Oct, the bank stopped withdrawals, that doesn’t mean it is now bust, though at very best it's probably a 50-50 likelihood. Aside from the Chancellors pledge, here are the crucial points.- The bank has now been declared in default by the FSA.
- Compensation arrangements have now been triggered, and the FSCS will update savers on how to get their money back.
- If compensation arrangements are triggered it, the Chancellor has now guaranteed all the cash in the accounts, even that above the standard £50,000 FSCS compensation limit.
- Early indications form the FSCS are positive that all interest earned up until thy day of default will be paid as part of the compensation.
- The first €20,000 (this may’ve been upped to €50,000 on some reports of a European meeting on Tuesday) should come from the Icelandic compensation scheme, but in the event that Iceland can't meet its obligations then the UK government will provide the cash.
- If a claim is needed, it will probably involve filling out just one form to the FSCS, you would not have to write to Iceland. If that does happen, full details and any necessary template letters will of course be included here.
- VERY IMPORTANT. To ensure you have a record of the money in there, and hopefully smooth out any compensation procedure, log into Icesave immediately and print out your current statement.
There is no finalised procedure set up yet, as there hasn't been a pay out of this scale from the FSCS before. The FSCS has said it will be publishing more information tomorrow (Friday 10th), it's likely it will contact everyone who had savings in Icesave, sending an application form for you to return with your details. All new details will appear here and in the weekly email.Former MSE team member0 - The bank has now been declared in default by the FSA.
-
Update for Kaupthing customers worried about Chaps payments
18.30, 14 October
In case anyone hasnt seen the update yet from ING Direct, the following message has now been posted for ex-Kaupthing customers
PAYMENT UPDATE
We have been working hard to restore normal service for Kaupthing Edge customers and resolve the issues around delayed payments.
In addition to the payments already made, we are now able to confirm that all payments will arrive in their destination bank account by close of business Friday 17 October. There are a very small number of manual payment instructions which are still being processed and which will take slightly longer.
Once again we apologise for the inconvenience and distress this delay has caused. It has taken us longer to resolve the issues at Kaupthing Edge than we expected due to the significant disruption caused when the business was taken into administration. Understandably, customers have been asking for clarification on when this issue was going to be resolved, but this is the first time we have been in the position to give firm assurances.
Thank you for your patience and we can confirm that customers will not lose interest as a result of this delay.Former MSE team member0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.1K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.1K Work, Benefits & Business
- 599.1K Mortgages, Homes & Bills
- 177K Life & Family
- 257.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards