Icesave-please help/advice!!!!

steve_hill

A nugget from Mikeyorks (with info direct from HMRC) on another Icesave ISA post is that it is possible and valid to self-transfer this year's ISA entitlement. Only this year's though, not previous years. I am moving two years out of an Icesave ISA on CHAPS tomorrow as don't want to wait for it to transfer through the normal channels. My take on the situation is that two to four weeks is about one to three weeks more than Icesave have, given the statement from the Icelandic PM today. Icelanders will certainly - and rightly - be looked after first.

Steve

simplykdc

Hi all,

I'm new to MSE (my wife is an avid reader!), and thought I'd join to add my two-penneth

I'm too spooked by the news today and (with careful thought) withdrew my life savings from icesave. It's not a huge amount (<£10k), but it took me 5 years to save and I can't risk loosing it at this point.

I've worked out this will only cost me about £400 over the next 3 years in lost interest (i.e. taxed interest). And if my wife has a child soon (which is on the cards :eek: ) I'd be 'loosing out' on less interest if I used her tax allowance whilst she's not working.

Personally, I'd rather have my money in the UK economy rather than an Icelandic bank where the risk of complications getting my cash back seems higher (I may be wrong, but for a few hundred quid, I'm willing to).

freddykrueger

I too have withdrew my ISA.....it's not much but enough for me to care about. Can I just ask above posters when you did the transaction that your balance has not been updated yet to reflect the withdrawal?

cwcw

Sordice wrote: »

Just my opinion but I really think that if you wanted your ISA out of Icesave then you should have transferred, as suggested by others above...

But its your choice, you've got to do what feels right for you

Yes, I was originally going to do just that as it's a shame to lose so much tax free allowance. But ISA transfers take weeks to go through (one year I had one that took 2 months) and by that time, who knows if Icesave will still be with us? I had to balance the low risk of losing my life savings and future of my family, against the certain risk of losing £30 a month in the difference between tax free and taxable interest on it. I didn't have the stomach to to risk it.

simplykdc

FK: Your balance won't be updated until they open tomorrow morning (and start the transfer).
When I closed my account, it said that I wouldn't be able to log-on again, so I'll just have to wait the 4 working days (Friday through BACS) to see if it reaches my account.

Birdie100

Yup, seems the withdrawals are winning out. If the Icelandic government can pull some magic for us depositors, I'll cancel my BACS transfer tomorrow. The withdrawals never happen instantly - never have - they will take 3-4 days (but CHAPS is obviously faster). If anyones interested too, there's a promo rate for standard savings at Egg - 6.3% - and it can be deposted/ withdrawn from via the new faster payments service. With a bit of luck, you won't have to lose more than a days interest on the balances, and if the situation improves, you can always pop the money back to icesave.

Slightly changing the tack though - what does anyone see in the likelihood of Landsbanki divesting icesave? I mean, say they announce tomorrow that they had sold it to a high street bank UK, the money exodus would end. The UK bank could have a substantial amount of extra liquidity to its balance sheet. Fair enough, the UK bank would pull the awesome fixed rate deals, but given the rates of Libor etc now being so high, I would have thought the extra liquidity would be useful.

freddykrueger

Thanks for clearing that up - I've left funds in the account but withdrew the majority of it as like your good self I can't run the risk (however small that may be).

simplykdc

Thanks for the info' on the Egg account - I'll be looking for the best standard savings accounts tomorrow!
The Icesave part of Landsbanki is worth £100'smillions (only savings and no loan risk), so, i agree they could easily make lots of cash selling it.
Too late for me though, I've jumped the boat already (right or wrong :rolleyes: ).

Birdie100

Sorry, just to point out the egg rate's a promo rate - not a long term rate. Aside from kaupthing, icesave or icici there isn't really any other long term instant access guarantees going I'm afraid. But, this will have to do in the short term.

johnoz

Well, depends what you mean by "long term" and "short term". The Egg 6.30% rate is fixed for 12 months from account opening, which is more than "short term" in my books, given these rapidly-changing times!