Icesave isa is safe?

best025 · 1 April 2008 at 10:17PM

Hi all
I've read lots of articles about Landsbanki(icesave) might go bust, is it true? I've got 3000 pounds isa with them. Do you think I should withdraw it? or if it still safe to have a saving with them? Cheers

natman · 1 April 2008 at 10:18PM

I am in the same boat -
Just transferred in £3150, and about to pay in £3600 come 6th April 2008. Would also like some info - advice

Exo · 1 April 2008 at 11:28PM

It has been discussed before, try here.
http://forums.moneysavingexpert.com/showthread.html?t=777309&highlight=Icesave
and here.
http://forums.moneysavingexpert.com/showthread.html?t=806373

In my opinion, your money is just as safe there compared to any UK bank, probably safer.
I have a greater sum in their fixed term account.

Your money is guaranteed up to 35K under the financial compensation scheme.
Assuming the worst scenario, as no bank has ever gone bust, we do not know how efficiently the compensation scheme will work but I would imagine it would take about 6 months before you got you money back.

ianmr65 · 2 April 2008 at 12:49AM

In the current credit crunch climate a seriously large number of banks in the world are at a much greater risk of 'Going bust', than this time last year

There are a two exceptions here in the UK.

National savings
Northern Rock as long as they both continue to be owned by the goverment

And one here in the UK that is so big that them going bust is not an option for the planet.

HSBC.

I would have thought that of the rest Barclays, RBS, amd Lloyds are the safest, by dint of size more than anything else.

HBOS teetered badly a couple of weeks ago, and might well have 'gone bust' if the authotrities hadn't nipped it in the bud so effectiffly.

And so all the rest, of the banks and building societys here in the UK are certainly vunerable to 'going bust' to a greater or lesser degree.

So if you're worried, and want their current high intrest rates. Northern rock it is.

steadysaver · 2 April 2008 at 8:59AM

In theroy if a bank does go under, and say I have £12000 in an ISA. When compensation is returned to me can I return the £12000 to an ISA. Or would the money lose its Tax free status?

Meltdown_2 · 2 April 2008 at 2:31PM

As far as I know, the government haven't specified how they would deal with such a situation. That was probably because they didn't want to imply that such a scenario was at all likely.
(If anyone knows differently please advise - I suppose it might be hidden away in some more general regulations.)

But in my view they would (if it ever became necessary) allow people to put it back into an ISA without penalty. It is purely a political issue, and politicians are in the business of getting re-elected.

Purple_Peril · 2 April 2008 at 3:03PM

I would have thought that some clever lawyers would be able to argue that they had set a precedent by allowing savers who had withdrawn from Northern Rock ISAs to return the money to an ISA and retain the tax-free status - but again, their lawyers would probably find some way to argue that didn't create a precedent.

webdigga · 2 April 2008 at 3:51PM

I have just transferred £15k into ICEsave and regardless of all the people saying not to worry, I am more than a little concerned.

netlang · 2 April 2008 at 3:52PM

I opened an Icesave Isa account over 5 weeks ago and requested them to transfer my existing Bradford & Bingley ISA. I could not get hold of anyone at Icesave for over 4 weeks as their lines have been so busy. I called Bradford and Bingley and they said they have not received any communication from Icesave regarding the transfer (Thank goodness it has now worked in my favour as I have decided to leave my money in the UK)

planemad · 2 April 2008 at 5:32PM

webdigga wrote: »

I have just transferred £15k into ICEsave and regardless of all the people saying not to worry, I am more than a little concerned.

If you are concerned mate then move out your money! simple as that and all your concerns are gone.:beer:

alared · 2 April 2008 at 6:19PM

If an Icelandic bank started to go under as in the case of NRock,do you think the Iceland government would prop it up with billions like our lot did?

I think not

get your money back to the UK,while there`s still time.
The big greedy hedge funds are trying to wreck the Iceland economy by spreading rumours simply to make even more money for doing very little.

Icesave isa is safe?

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