Kaupthing Edge, Should I Avoid?

coolio_2

talana wrote: »

Yawn!
Gosh, have we been warned? Really?
Nothing new, nothing we haven't heard time and again for months now, over and over and over and over and over...........

Only the last week have they been downgraded so things ARE NEW

http://www.thisismoney.co.uk/saving-and-banking/article.html?in_article_id=452977&in_page_id=7

coolio_2

papolo wrote: »

It is common for a bank to owes more than eight times its capital value. Many UK and international banks operate under this margin.

PS. Ireland does not have a airport

It is common for it not not have M1 for the full amount. There is a difference.

And Ireland has many airports

Vectra

Those with nothing in Kaupthing should not keep making stupid remarks, meaning those of us who have funds deposited have studied the market carefully and are more than happy with this Bank and its performance.
On the 1st I transferred the monthly paid interest
to my linked acct where it will appear in a couple of days ready for me to spend as part of my income.No fuss straightforward as always whats the problem.

coolio_2

Vectra wrote: »

Those with nothing in Kaupthing should not keep making stupid remarks, meaning those of us who have funds deposited have studied the market carefully and are more than happy with this Bank and its performance.
On the 1st I transferred the monthly paid interest
to my linked acct where it will appear in a couple of days ready for me to spend as part of my income.No fuss straightforward as always whats the problem.

I am so jealous, I wish over 20k was nothing to me to but alas *sigh* I am not as rich as you and last time I checked I was able to post my own views here.

The 'problem' is that Kaupthing Edge has been downrated by the ratings agencies and there are a few articles that have come out in recent days warning people their money may well not be safe with Kaupthing Edge. Educating people is all about making them aware of the pros and cons

Lynt_3

Why hasn't Martin said anything if KE is in such a dire situation?
It is still top of his list of best instant access accounts.

I opened an account a couple of days ago, and I was going to put 20k in today, but all this just confuses me.
I might just put it in my Egg account, with rubbish interest, and wait.

roddydogs

Lynt wrote: »

Why hasn't Martin said anything if KE is in such a dire situation?
It is still top of his list of best instant access accounts.

I opened an account a couple of days ago, and I was going to put 20k in today, but all this just confuses me.
I might just put it in my Egg account, with rubbish interest, and wait.

Even if Martin knew something we dont about KE-do you really think that after months of recommending it as a best buy, he would suddenly say "Get your money out quick"-thereby starting a "run" on that bank?

isofa

I guess he'll leave that to scaremongers on the forums instead... just hope the majority of intelligent people (surely there are some), can make up their own minds... I'm very happy with my 6.55% interest rate there, and certainly not leaving, it is as safe as most UK banks and anywhere else.

jack111

Lynt wrote: »

I might just put it in my Egg account, with rubbish interest, and wait.

The new egg account gives you 6.30%.
http://new.egg.com/visitor/0,,3_94368--View_2081,00.html

You can move money from you old account into the new one. I threatened to leave and was suddenly told about a policy change that existing account holders could create a new account online and have the 6.30% rate applied to them.
Ignore the last bit that it only applies to new accounts and new money

I think 6.30% AER is a good rate.

Prosymna_2

[delurk]

Looks like Kaupthing is at very serious risk of default:

http://ftalphaville.ft.com/blog/2008/10/03/16633/how-do-you-say-this-sucker-is-going-down-in-icelandic/

Obviously savings with them up to £35k are covered by the FSCS, but like other people here I'm not keen to be a guinea pig, so have moved my money out.

I'm not trying to be alarmist but there is potential for serious hassle here for Kaupthing savers if the worst happens.

[relurk]

Young_Offender

Regarding the novation clause and whether this would change protection levels, their website FAQs say the following:

'We have no intention of moving your deposit to Kaupthing Bank, and though in the unlikely event that we were to do so, we would give you at least 30 days notification.
If this did happen you would remain a Kaupthing Edge customer and your account number, details and call centre contacts would not change. Your money would remain safe, and protected up to exactly the same amount as the UK Financial Services Compensation Scheme (which currently pays up to £35,000). The only material difference to you, would be the structure of the compensation itself, which would be provided by two schemes (sometimes referred to as a passport scheme):

• The first level of protection is provided under the Icelandic Depositors’ and Investors’ Guarantee Fund. The maximum protection under this scheme is 100% of the first €20,887 (or the sterling equivalent) of your total deposits held with us.
• The second level of protection is provided by the UK Financial Services Compensation Scheme. This scheme "tops-up" your protection so that the protection under both schemes is equal to 100% of the first £35,000 of your total deposits held with us.
• Under EU law compensation for any losses incurred due to the failure of a bank should be paid within three months - regardless of whether it is through a passport scheme or the UK Financial Services Compensation Scheme. '

So you'll be warned if they're going to novate, and even after any move you'd still have the passport protection. I'm staying put.