Kaupthing Edge, Should I Avoid?

moanymoany

Iceland has a population of 320,000 people. It's not a lot to pay everyone 100% of their savings.

I would move my savings - but everyone has to make their own decision.

Vectra

ebyard wrote: »

Under your bed. Safest place for it.

Ho Ho not round here matey I would rather put it in, errr can't think of of a risky Bank at moment

isofa

downs523 wrote: »

everyone is going to lose there savings

Phew! As long as it's not their savings, we'll all be ok...

To add to this informed debate, we are all going to pay taxes if we don't already.

And, I hate to break it to you, but we are all going to die, eventually too.

Vectra

Ha Ha well put isofa

LucyTheDwarf

isofa, you've ruined my life. Now I know I'm going to have to continue paying taxes, I've quit my job, and now I know I'm going to die, I'm never leaving the house again, to minimise the risk

susanjfp

TCA wrote: »

Can anyone enlighten me as to whether this 100% guarantee is likely to apply to Kaupthing's Isle of Man subsidiary and their offshore saver account?

Very unlikely as the Isle of Man has its own (very poor) compensation scheme. the details can be seen here

Channel Isles compensation scheme looks shaky too.

campins

donaldtramp wrote: »

Come on, someone out there must know whether or not interest is covered by the bank protection scheme.

If it isn't my GFs cash and my cash will be moving very sharply out of Kaupthing Edge. We've both got substantial sums (below the 50K limit and we're not married so 2 separate protections) in there and I WANT my interest.

If it isn't guaranteed what's the point of me lending MY money to them?? I don't expect to have to take risks when depositing money in banks.

As for all the people telling me not to worry about my money, get real. Have you not seen what is happening in the stock markets rght now? Biggest ever drop in the Footsie in one day ever. Somethings happening!
http://news.bbc.co.uk/1/hi/business/7655288.stm

Icelands stock index suspended from trading.
Iceland as a country has done a "Northern Rock." This tiny country is now carrying the debt of 5 times its GDP. BBC News 10 mins ago.

I don't think these banking/shares problems have bottomed out by any means and I'm going to make sure I do the best I can out of it.
So if anyone can post up an answer as to whether the interest is protected or not would be most appreciated....

It looks like you may lose interest if it has not been paid, have a look at their web site http://www.fscs.org.uk/consumer/

Poosmate

I would hate to win the lottery jackpot at the moment! I wonder where the Queen has her savings? Or the Beckhams? Or J K Rowlings?

I'm in debt up to my waist so I don't have the problems everyone else has with huge savings. I am buying my house but it's my home not an investment so no problem there either. I can afford my mortgage and my debts at the moment but I am still worried about what is happening around me.

Watching the news atm and from tomorrow £50k will be safe in each establishment (this time - last time they said each account). He just said each account again! Doh! This is confusing. I'm kind of glad I'm in debt!

Baton down the hatches everyone, it's going to be a tough ride!

Good luck all,

Poo

codger

papolo wrote: »

Can every Kaupthing Edge haters shut up now!

If the poster's first language is Icelandic, then I'm not surprised the English is a bit mangled.

Still, and with due regard to Martin's plea that everyone here should treat everyone else with appropriate courtesy, I have to admit that where this particular gibberish is concerned, I haven't laughed so much for a long time.

I'm still with KE as an online instant access savings account holder. Albeit that savings level has just been slashed by 95% because -- and this clearly seems not to have occurred to papolo in his igloo -- I am the LENDER of funds to Kaupthing Edge. Not the BORROWER.

KE is paying me to BORROW my money.

As such, I have a responsibility to myself as a LENDER not to unnecessarily take risks with my money, my family's welfare, and my family's future.

Currently, banks all around the world are ceasing to LEND to each other because they're uncertain about the provenance of the borrower.

The fact that the banks themselves caused this loss of confidence is beside the point: right now, only a fool will lend (i.e., deposit his / her savings) with any institution where that level of uncertainty is too much for comfort.

Unfortunately for KE, the still unresolved question of account novation notification continues to bedevil it. The question goes to the very heart of KE's provenance: either the amount on deposit is to be transferred out from UK FSCS 100% protection to a clearly flawed Icelandic compensation scheme without notice, or novation will occur only after KE's UK subsidiary has given 30 days' notice.

Only an idiot would view this situation in terms of "love" and / or "hate" but to judge by some of the posts on this thread, they're pretty well represented here. . .

MiserlyMartin

So cutting through the confusion:

1. We are protected up to 50k via the FSCS
2. This may be slow to adminster because this is run by the treasury (buffoons at the government)
3. We might also lose the interest which is the whole point in putting the money away in the first place

So therefore if one can pre-empt a bank going under it would be wise to move out to save the hassle of the above?
And where to that is paying a good rate but is safe?