kaupthing edge too risky now???

Dave_®f©

I withdrew all my money from Kaupthing on Wednesday for three reasons...

1. All the uncertaintanty of the Icelandic banks at the moment.
2. HBOS offering 7% in their fix for three months (I know it's tied up for 3 months and not instant access but I don't need it anytime soon). Now this is Moneysaving!
3. The impending increase of 50k protection for UK institutions next week.

Andrew64

Kaupthing may be forced to sell Singer & Friedlander:

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/3136795/Iceland-lines-up-bank-rescue-deal.html

jack111

http://news.bbc.co.uk/1/hi/programmes/moneybox/7650331.stm
listen to the interview

formulaonefan

ian-d wrote: »

I'll be taking my money out, but not because of panic, but because I can now combine it with one of my other accounts once the £50k limit comes in on Tuesday :T

May I know which other saving account bank do you use? I had my savings on KE but now want to move. Which other UK savings account is best and safe?

Richard_Cocks

Dave_®f© wrote: »

I withdrew all my money from Kaupthing on Wednesday for three reasons...
3. The impending increase of 50k protection for UK institutions next week.

Given that KE falls under this protection (and the increase) why should this be a reason for moving away from them?

alared

I also posted this on another thread:

I noticed when I logged-in today that I had to agree to their new T&C`s updated from 4th June.
It`s a 21 page document.
DAK if there are any other changes in them that could affect matters now?

This paragraph caught my eye.

3.2 Novation
[FONT=Arial,Arial][FONT=Arial,Arial]Kaupthing Singer & Friedlander Limited may, by notice to you, novate the contract between it and you [/FONT][/FONT]
[FONT=Arial,Arial][FONT=Arial,Arial](comprising the Terms and Conditions) to Kaupthing Bank hf. This means that from the date of the notice to [/FONT][/FONT]
[FONT=Arial,Arial][FONT=Arial,Arial]you, all of Kaupthing Singer & Friedlander Limited’s rights and obligations to you will be transferred to Kaupthing [/FONT][/FONT]
[FONT=Arial,Arial][FONT=Arial,Arial]Bank hf, with whom you will have a contract comprising the Terms and Conditions. From that date, your rights [/FONT][/FONT]
[FONT=Arial,Arial][FONT=Arial,Arial]and obligations under the Terms and Conditions will be with Kaupthing Bank hf. Kaupthing Singer & Friedlander [/FONT][/FONT][FONT=Arial,Arial]

[FONT=Arial,Arial]Limited will notify you of that novation through one of the Communication Methods. You consent to that [/FONT]
[/FONT]

[FONT=Arial,Arial][FONT=Arial,Arial]novation. [/FONT][/FONT][FONT=Arial,Arial]

The way that reads to me is that they can just send you an email saying you`ve been novated and because you`ve already agreed by signing their latest T&C`s you`re tranferred to come under the Iceland compensation scheme.[/FONT]

[FONT=Arial,Arial]So you go to bed one night fully protected by the FSCS £50k guarantee,you get an email during the night and you wake up under the Icelandic system.[/FONT][FONT=Arial,Arial]

Time for a move me thinks!

[/FONT]

alared

sloughflint wrote: »

Alared, I've just logged in after reading your post and got no such message.

I expect it depends when you opened your account.

i.e. before 4th June 2008 or after.

Either way you must have signed their T&C`s which means they can shift your account to the Icelandic system.

KingL

If you have logged into your account since June you will have been prompted to agree to the "new" (at 6 Jun) Terms and Conditions. You would have agreed to them and moved on. There have been no material changes in the TnCs since June 08. The novation clause was in version prior to June 08, too. They said that the purpose of the change in June 08 was to reduce the required minimum balance.

As alared's post is cross-posted in another thread, I'll cross-post my response here, too:

That's how I read it too. In the interests of balance, it's worth pointing out that in their faq (#13, reproduced below) says that they would give 30 days notice in the event of it actually happening. It's also worth saying that, the icelandic system gives you exactly the same amount of protection as FSCS (as it is topped up by the FSCS). I expect it would be more hassle and delay to implement, mind. (Note that the £50k protection doesn't apply until Tuesday).

agsnu

alared wrote: »

[FONT=Arial,Arial]The way that reads to me is that they can just send you an email saying you`ve been novated and because you`ve already agreed by signing their latest T&C`s you`re tranferred to come under Iceland compensation scheme.
So you go to bed one night fully protected by the FSCS £50k guarantee,you get an email during the night and you wake up under the Icelandic system.

Time for a move me thinks!
[/FONT]

No, you're being alarmist. Any theoretical deposits held by Kaupthing Bank hf will be topped up to the full level of protection afforded by the FSCS. The only difference is that you will have to claim the first €20,000 from the Icelandic protection scheme, and the remainder (£50k-€20k) from the FSCS.

Once again, you will have the same amount of overall protection no matter whether your deposits are held by Kaupthing Singer & Friedlander Ltd or Kaupthing Bank hf.

Andrew64

agsnu wrote: »

The only difference is that you will have to claim the first €20,000 from the Icelandic protection scheme,

I wonder how that would be done!