Kaupthing Edge, Should I Avoid?

altocumulus

Parisien wrote: »

Having read through this thread......can some of you more astute posters reassure me that my money is as safe with KE as it is with ANY other UK based and run bank?

No ifs, buts, maybes.....just a yes or no.......!!!

Thanks!

P

Yes.

As safe in KE as in a UK institution because all are protected under FCSC.

zaccy

Moneybox today, covered all this.

http://www.bbc.co.uk/iplayer/console/b00dpw9g

tpl288

Question: Does the limit in FCS only cover principal and not interest accrued? For example, (assuming the 50k increase does not apply yet) if you have 35k and you earned interest which takes you above 35k, will your interest accrued still be protected if Kaupthing goes bust?

Oblivion

tpl288 wrote: »

Question: Does the limit in FCS only cover principal and not interest accrued? For example, (assuming the 50k increase does not apply yet) if you have 35k and you earned interest which takes you above 35k, will your interest accrued still be protected if Kaupthing goes bust?

The guarantee limit includes the amount deposited and any interest earned on it. So if your interest earned takes you over the £35k (soon to be £50k) limit you will lose the excess.

Dave.

Stevenic

Oblivion wrote: »

So if your interest earned takes you over the £35k (soon to be £50k) limit you will lose the excess.

'will lose the excess'? Wouldn't 'may lose the excess' be more accurate?

altocumulus

Oblivion wrote: »

The guarantee limit includes the amount deposited and any interest earned on it. So if your interest earned takes you over the £35k (soon to be £50k) limit you will lose the excess.

Dave.

From the FCSC docs, the excess is not necessarily all lost - it does depend...

Consumers with deposits above the FSCS limit

7. Those protected depositors who have money deposited over the compensation limit will receive compensation promptly for the amount of their deposit up to the limit (currently £35,000), in the same way as depositors with funds below the limit. So all protected depositors will receive prompt compensation up to the FSCS limit.

8. Depositors with deposits above the limit may also receive additional funds above and beyond what comes from the FSCS compensation scheme. How much they receive depends on the rate of recoveries (also known as the dividend rate) from the estate of the failed bank and how those recoveries are allocated between the FSCS and the
depositor.

Oblivion

altocumulus wrote: »

From the FCSC docs, the excess is not necessarily all lost - it does depend...

Consumers with deposits above the FSCS limit

7. Those protected depositors who have money deposited over the compensation limit will receive compensation promptly for the amount of their deposit up to the limit (currently £35,000), in the same way as depositors with funds below the limit. So all protected depositors will receive prompt compensation up to the FSCS limit.

8. Depositors with deposits above the limit may also receive additional funds above and beyond what comes from the FSCS compensation scheme. How much they receive depends on the rate of recoveries (also known as the dividend rate) from the estate of the failed bank and how those recoveries are allocated between the FSCS and the
depositor.

My response was referring to the limit of guarantee, not what you might get back if the circumstances turn out to be more favourable.

Dave

altocumulus

Oblivion wrote: »

My response was referring to the limit of guarantee, not what you might get back if the circumstances turn out to be more favourable.

Dave

Ah !

but you said "So if your interest earned takes you over the £35k (soon to be £50k) limit you will lose the excess."

But what the 'eck - we all have to make our own minds up.... (baa)

codger

downs523 wrote: »

JUST FOUND THIS ON THISISMONEY, SAYS THE BANK MAY BE IN TROUBLE!!!
http://www.thisismoney.co.uk/saving-...9&in_page_id=7

I know this post (yesterday) was well intentioned. But I do wonder at the capacity of a thread such as this to inadvertently alarm more than it informs.

The link above leads to the headline: "Kaupthing Edge begins to crack", an allusion, presumably, to the thin Icelandic financial ice. Much further down in the column text, however, is this:

"Savers should not worry about the stability of the bank if they have less than the £35,000 compenstion limit deposited with it, a limit that will increase to £50,000 on Tuesday October 7th. Kaupthing operates fully under the UK FSCS scheme."

I'm a very happy, very satisfied, Kaupthing, Singer and Friedlander savings account holder. The "brand" is KE, but as far as any and every UK-based domestic account holder is concerned, KSF is the savings holder. So as the UK subsidiary of KE, KSF is covered by all the rules, regs and protections of every other UK bank.

Curiously, in all the gloom and doom that has been harvested on this thread and elsewhere on the 'Net, the acronym KSF gets very, very little play. Instead, it's all KE. Even the title of this thread is a misnomer.

My own experience of, and conclusions drawn from, dealing with KSF are:

1) A superb online operation
2) A great savings rate
3) 100% full UK financial protection up to £35k now / £50k next week
4) A 30-day notification period re novation if -- if -- such was ever to happen. (If I can't be ar$$d to react to such a notification within that period then that's my fault, no-one else's.)

Like many others here, I'm staying with my KSF account.

In my case, it's one of three savings accounts with different UK banks (emphasise: "UK banks") and the amount held is considerably less than the protected maxima. It would be inconvenient for me should any of those banks collapse and I'd have to await my 100% compensation -- but inconvenience is one thing, end-of-the-world doom-mongering, quite another.

Which prompts the question: what is is with this country anyway that in times of trouble there are so many who seem actually to enjoy ratcheting everything up to ever greater and more dramatic heights?

altocumulus

From the BBC MoneyBox programme - Iceland banks .... http://news.bbc.co.uk/1/hi/programmes/moneybox/7652519.stm