IceSave ---- Time to Withdraw?

LongTermLurker

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?

Yes, the FSCS will cover you for up to £35000 after the host country's scheme has paid, so if the host scheme paid zero, it would be made up by the FSCS - in theory! Bearing in mind that the host scheme will pay in a foreign currency, that would have to be the case because the first payout will vary.

DavidAC

I think this is an important question so I have just emailed the question to the contact on the https://www.fscs.org.uk internet site.

planemad

That how its been explained to me, the FSCS top up to the value of £35k so if the host country pay nothing than the FSCS have to pay the whole amount.

So in a nut shell you seem to have a double wrapper of protection.

Lavendyr

I have had the opposite explanation from the FSCS directly by email, having asked that very question. Essentially, if the bank goes bust and the Icelandic compensation scheme could not pay out, the FSCS would *only* pay the top-up amount, that is the difference between €20,877 and £35k. It would not pay the whole amount.

(Edit: I should add that this does not keep me from holding an ISA and easy access saver with Icesave!)

planemad

Maybe someone can PM Martin and get clarification for us all so we all know where we stand.

alared

One thing that did come out crystal clear in the NR debacle is that no one believed what Alistair Darling or the government said and carried on queuing to withdraw their cash.

And who can blame them!

isofa

nilrem wrote: »

I really don't understand why people are always so worried about keeping their investment to the FSC 35k limit and all the worry about their bank/building society going bust, IMHO the whole issue of compensation is academic anyway, if any major financial institution goes bust and savers lose money the mass stampede by the public to withdraw their cash from all other institutions will cause such problems that any guarantee would be worthless anyway!

The banking system is built on trust, if that trust goes and people withdraw their cash from the institutions the economic disaster would be so great that their would not be enough in the fund to pay out and the government would not be able to bale everyone out!

One only has to look at the mass panic the NR problems caused, even people with a few pounds were withdrawing their cash and no saver lost out, imagine the overwhelming panic that would ensue if a major bank went bust!

I am more than happy to keep my cash with Icesave, the people who write these articles have to find something to fill their pages even when it is just recycled scare stories, the NR problem was made 10 times worse by the media (IMHO)

Exactly my point of view! :beer:

edda

Can't we just lump all these scare stories about Icesave together in one thread?

Someone must have really upset the media for them to keep dragging up the same old song over and over again.

talana

Yes, it seems we've seen the same old scare story appearing in many articles for a long while. And no doubt we'll see the same thing again and again in future. Doesn't make a scrap of difference to me, I'm happy to keep my savings with Icesave.

Out of interest, Icesave have just recently launched in the Netherlands as well. Will the Dutch media pick up the same scare stories I wonder? Early days but seems they're doing fine there too!
http://www.icesave.nl/english/news-announcements/?NewsID=23&y=0&p=0

home_alone

Its been a few weeks since the last icelandic "im doomed I tell you doomed" thread was hoping they would stay away. Damm I surpose this post puts it back to the top again.

gary