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Icesave Fixed bonds, Given a choice what will you do?
nilrem_2
Posts: 2,188 Forumite
It has been reported that many of us with Fixed rate bonds with Icesave may be given a choice of either cashing our bonds early or leaving them in till the actual maturity date and receive the interest accordingly.
The above has not been confirmed but I thought it might be interesting to see what people would do if that is what happens.
As mentioned we may not get a choice with Fixed rate but please vote what your intentions would be if we did. Thanks.
The above has not been confirmed but I thought it might be interesting to see what people would do if that is what happens.
As mentioned we may not get a choice with Fixed rate but please vote what your intentions would be if we did. Thanks.
Given a choice will you cash in your Fixed bonds early or wait till maturity? 64 votes
I will cash mine in ASAP.
20%
13 votes
I will leave my bonds until maturity, (given that they are safe)
62%
40 votes
I am not sure what I will do.
17%
11 votes
0
Comments
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If they allow the bonds to continue would they still pay monthly interest?
One answer says "given they are safe" - who would be taking over the liability? Or would it stay with an Icelandically nationalised Icesave?0 -
Exact text from the Money Box broadcast 25 Oct 08 on the subject of Fixed rate bonds.
Money Box presenter Paul Lewis interviewing Money Box reporter, Bob Howard
Paul : But Bob, there is still some uncertainty regarding Icesave customers with fixed rate bonds...
Bob: Yes, Paul, the FSCS says lots of customers are saying they want to cash these in and it says it is working out a way for this to happen.
Those who want to keep their bonds as they are, we understand they will get interest up to the date they mature, but we don't know yet what happensto the interest for anybody who decides to cash their bond in early.
23:30 http://www.bbc.co.uk/iplayer/episode/b00f25vz/Money_Box_25102008/0 -
I voted to keep until maturity, 5th May 2009. However, this depends on who's looking after it and what the interest arrangements are. My particular fixed is the payment at maturity option so possibly less complex than the monthly interest?
Keeping my options open though until it's all been finalised.0 -
The only way I would leave my fixed term account intact until maturity would be if a bank/BS with full UK compensation backing were appointed to oversee these accounts.“You can please some of the people some of the time, all of the people some of the time, some of the people all of the time, but you can never please all of the people all of the time.”0
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~Chameleon~ wrote: »The only way I would leave my fixed term account intact until maturity would be if a bank/BS with full UK compensation backing were appointed to oversee these accounts.
Indeed when the poll states "Given they are safe" it would be as you mention (a bank/BS with full UK compensation backing). There wasn't room to elucidate when wording the poll questions
0 -
Indeed when the poll states "Given they are safe" it would be as you mention (a bank/BS with full UK compensation backing). There wasn't room to elucidate when wording the poll questions
And also assuming they will maintain the same rate of interest we had under Icesave
Although, having said that, I've just checked my Icesave account and I'm on the old rate of 7.01% and there are two fixed term accounts with Anglo Irish Bank that currently beat that rate :think: ... but would that be a case of out of the frying pan and into the fire! :rotfl:“You can please some of the people some of the time, all of the people some of the time, some of the people all of the time, but you can never please all of the people all of the time.”0 -
Given that the Bank of England interest rate is forecast to fall because of the recession, I reckon a 7.1% rate is worth hanging onto, always with the proviso that our savings would be 100% guaranteed.0
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I voted not sure.
The majority of my savings in Icesave are in my ISA, though I do have four fixed term bonds varying from 6.5% to 7.01%
If these are allowed to run full term where exactly does the interest come from? The compensation scheme, or would another financial institution be responsible? If the latter would they be prepared to honour the interest rates we were promised?
With the real likelihood of interest rates falling then as long as these bonds are 100% guaranteed, then allowing them to run full term is the obvious choice to make; I do however understand if people would prefer to just take their cash and put the whole thing down to experience.
On balance I think I'd leave them run full term as long as there is that 100% safety net.:p0 -
I have ~£9500 tied up in yearly bonds while I was trying to set up a 'ladder' (They mature once a month around the 7th of Feb-Oct. I never got the chance to set up a rolling one.)
Are they actually 'safe?'
I'm not sure, so the options presented don't really offer me a true answer. Voted to 'keep them,' though I may just get the money now and stick it in a tracker fund; it seems to be the next best thing to lose my money on.. Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
Im leaving mine in - I only have to wait until the end of the year.Had £80,000 in Savings - All GONE!!! BYE BYE:A Single, 27, Aspie, Gooner :A0
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