IceSave ---- Time to Withdraw?

alared

http://business.timesonline.co.uk/tol/business/columnists/article4273175.ece

chesky369

Nothing new in this article - nothing we haven't read dozens of times before and even I knew the figure of £88m. It's a bit of a non-article really, even admitting "Landsbanki is highly rated and there is no reason to think that it could go wrong". So no real point to the story.

tradetime

Same old recycled "exclusive", I thought news reporting was about telling people things they didn't know. perhaps Mr Hosking has just woken up from a coma?

Oblivion

No, my money is staying in Icesave and I'm now adding Kaupthing Edge to my portfolio.

There's more risk attached to several traditional UK banks than there is to the Icelandic banks. For example, B&B are looking very shaky right now and A&L seem hell-bent on destroying themselves through inept management and outdated systems. I've just pulled my money out from both of these.

Dave.

planemad

Agreed this is a semi recycled article.

We should be worrying more about the UK institutions.

Maybe this is scaremongering by someone to try to recoup some funds from abroad to UK banks by making people panic that their money is not safe with Icesave.

earlgrey_3

No you shouldn't take all your saving out but you should do the same risk versus reward calculation with any savings/investment.

Assuming that goverment bonds are 100% safe you should require a slightly higher return for placing your dosh with a bank. You should require a higher return still from a bank where there are any other factors that might increase the risk or for corporate bonds.

Anyone with any sense would have done those calculations for any non-uk bank. The not so savvy will just whistle in the dark, cover their ears, and hope.

meboy99

I think I already know this but can I just ask for confirmation please.

Is Kaupthing Edge covered 100% (35k) by the FSCS? and therefore there is no need to recover the first part from Iceland in the unlikely event of it failing, which you would have to do with IceSave?

noh

meboy99 wrote: »

I think I already know this but can I just ask for confirmation please.

Is Kaupthing Edge covered 100% (35k) by the FSCS? and therefore there is no need to recover the first part from Iceland in the unlikely event of it failing, which you would have to do with IceSave?

Yes you are correct. That is the current position with Kaupthing Edge.

Nigel

Plasticman

After several days of prodding and digging, I have, finally, ascertained the vital statistics of this fund, the Depositors’ and Investors’ Guarantee Fund. It describes itself, not very accurately, as “prefunded” but actually has £88 million in the kitty. That’s to cover deposits totalling £13.6 billion, 154 times as much.

Whereas:

The FSCS doesn’t keep a pot of cash sitting ready and waiting. Instead, it has the power to operate a 'compulsory levy' on banks, insurers and others signed up to the scheme, as and when it needs the money.

So the FSCS doesn't even have the £88 Million............

And:

However, here it gets a little complicated. The FSCS has a cap on how much cash it can levy per year from financial institutions; from 1 April 2008 the overall capacity was set at just over £4 billion. Yet in the FSA’s review document (page 77), it admits that £4 billion wouldn’t even cover the twenty-fifth biggest UK deposit taker!

So the UK scheme isn't looking fantastic either. That's why Mum's gone to Iceland

DavidAC

If a foreign bank using the FSCS passport system did go bust and the home countries system could not pay out, would the FSCS pay up to the full £35K compensation?

tradetime

DavidAC wrote: »

If a foreign bank using the FSCS passport system did go bust and the home countries system could not pay out, would the FSCS pay up to the full £35K compensation?

Probably not.