Icesave-please help/advice!!!!

meunier

I am in the same situation as Bite of the Apple, much as a goodly number must be, I suspect.

I am no financial wiz kid - and sit here feeling in my gut - my instinct - that the passport protections mentioned - given the extraordinary events in Iceland of the past couple of days - might well not - with all due respect - be able to be practically honoured - no matter how much the people working for these institutions at heart might wish it to be otherwise. (Strangely, I still have this dogged belief that people are good - I know, I know: Call me stupid!).

Nonetheless, I just wondered if people felt that the website might be down so Landsbanki (or is it 'the government of Iceland'?) might be able to sell the business to accrue cash instead of merely additional liabilities? Is that still a practical thought? Was it ever? I would be so grateful for your kind advice, Martin or anyone. If, in fact, the money 'does not exist in reality' is there anything to actually sell? Was not Icesave created by the purchase of another company in the UK? I know, I know: Please forgive my ignorance. If this information is currently apined somewhere else - perhaps you could direct me to it.

Moreover - can I also ask anyone wiser than I - (practically the totality of the civilized world I fear) - if - because of the 'passport' guarantee - the entity we know as 'Icesave' would actually be able to be sold at this juncture. Additionally, if it were able to be sold would the new owners be able to take on a regular guarantee under the terms of the regulatory bodies for pre-established savers. Is that possible? (Again, please forgive me if this is too silly a question - but I fear I am ignorant.

Much thanks in advance for any and all advice.

Hillfly

BiteOfTheApple,

I'm not quite in your position but I do sympathise. I had my family's life savings in an Icesave account.
Having evaluated the situation over the weekend I decided that based on the figures the Icelandic govnt position was very high risk. I am a low risk investor - hence I had put my savings into the highest easy access account I could find - i didn't invest in the markets or ISA's. Now I have a degree in Economics so I'm no idiot when it comes to these matters (although I now work in IT so I can't pretend I'm some banking whizzz) and I would be the last person to advise people to panic and create a run on the bank which would end in disaster for everyone.
All that said I decided that I would withdraw my funds and add to the worsening situation as I didn't fancy the hassle of attempting to reclaim my money from a untested international Passport system (which in the evnt of an Icelandic govnt bankrupty may prove worthless) and then get the remainder from an untested UK system - added to that I need instant access to a portion of the funds in the next few months.

I woudln't be too quick to condemmn th elikes of MSE for singing the praises of the ICEsave accounts. They have been excellent up until now - and let's face it - no one saw this situation coming. People predicted a downturn and a housing slump - but no one predicted the banking system itself would begin to fail (and anyone who says they did is most probbaly embelishing what they actually expected IMO).

Some final thoughts are that despite this vain of fear running through us all - it is still pretty unlikely the world would let Iceland fail as a financial entity - not impossible - but unlikely - they all have too much to lose if it did. That said I'm just too risk averse to take the small chance.

Good luck all.

WaltD

nilrem wrote: »

Trixie, stop worrying; there are a lot of irresponsible people spouting anti-Icesave propaganda at the moment, the media love to do this; even when there is no truth in what the report!

Like many others here I have substantial savings in Icesave (above the guaranteed amount) and I have no intention of moving the cash away from them.

What a difference a couple of days makes!

Bleg

So I guess we all now just have to wait and see what happens as we no longer have access to our funds. I am seriously worried as all these protections schemes are untested and the whole financial world is facing unprecedented circumstances. I really do not think there is anyone out there who really knows what is going to happen. Alot more financial institutions are going to find themselves in trouble and lets face it where is all this money going to come from to compenstate everyone. The so called compensation packages are not in a bottomless pit. Are they?? -or am I missing something. I am hoping for the best but honestly - I am preparing for the worst which is why I am now sitting in a pool of sweat even though it is freezing outside. Good luck everyone.

hawkesbaynz

I had about £100K in an IceSave Fixed rate in the spring when rumour and speculation was running about icelandic banks (particularly in the Daily Mail if I can recollect). However as it was fixed I braved it and transferred out £65K in July when the fix finished.

Just read in FT thant Landsbanki has been nationalised. For the benefit of the population of Iceland
http://www.ft.com/cms/s/0/34681bc8-944d-11dd-953e-000077b07658.html

However after a couple of months nervousness in the spring I could not afford to do this again, particularly with my wife's increasing agitation. Transferred £37K by CHAPS at 10pm last night. Nil balance in my account this am.

I am not happy in being a lemming but I cannot afford to lose £37K of a house deposit. If the bankers and politicians were trustworthy I would not, but unfortunately these professions do not attract the best moral calibre of folk.

A friend in New Zealand lost about $200K to a financial institution which went bust earlier this year. I cannot afford it to happen to me. I have doubts whether there are sufficient funds in the Icelandic Passport scheme to cover us all.

Wondering where to put my money next............. dig a hole in the garden?

Pete_Biggs

This is the latest development:
http://news.bbc.co.uk/1/hi/business/7656387.stm

I have money in an Icesave ISA I can't afford to lose. I hope this announcement is good news...

tradetime

nicholbb wrote: »

The first line (after the redirect paragraph) is:
[Investment or investing[1] is a term with several closely-related meanings in business management, finance and economics, related to saving or deferring consumption.:

Ah, fair enough, it's the English, isn't it, not your first language? No problem, "related" differs from "same as"
Now in the sentence you have quoted it says investment is related to savings or deferring consumption. The latter part is important for you to grasp, as it alludes to the fact that in economic terms saving is deferring consumption. Thus, since putting money under your mattress would also be deferring consumption, by your grasp of economics putting money under your mattress would also be investing. Look out Warren Buffet, not!

nicholbb wrote: »

This is followed by:
Investment is the choice by the individual to risk his savings with the hope of gain

Quite, here again the sentence itself alludes to the difference between savings and investments, in that you can if you choose, put the former into the latter.

nicholbb wrote: »

I'm sorry for thinking Wikipedia was simple to understand, and I'm sorry if you didn't understand that even banks were a risk.

Not at all, I have always thought that it was simple to understand, there is a list of languages to the left margin, perhaps if you tried the page in yours it would be clearer. Everything in life is a risk to a greater or lesser degree. Life could be said to simply be a complicated game of risk management

nicholbb wrote: »

If you really want to know more about the subject then I suggest you enrol on an economics course (or a history course will teach you about the depression in the 1920s).

Thank you for your kind suggestion, I have a degree in Economics & Finance thanks, that's kind of "like" an economics course, could even say it is "closely related", but I'd refrain from saying "same as" since I don't know which economics course you are referring to.

nicholbb wrote: »

Also check your terms and conditions you're probably refered to as an invester there as well (I can only say this for KE as I invested my money there and so only read these):

3.1.4 to improve efficiency and/or reduce costs;
...
d) to give extra benefit to investors (including making the terms of Account easier to understand);

9.7 Information which is published on the Website in no way includes advice to buy or sell particular financial instruments, and you are solely responsible for making investment decisions which are based on information published on the Website.

Ah yes the bank uses the term "investment" That's to give less informed individuals such as yourself the grand idea that they are participating in an investment, and therefore stand to make great amounts of money.
From my previous post, and borrowed from your ever so informative link

In many instances the terms saving and investment are used interchangeably, which confuses this distinction. For example many deposit accounts are labeled as investment accounts by banks for marketing purposes

EagerLearner

Pete_Biggs wrote: »

This is the latest development:
http://news.bbc.co.uk/1/hi/business/7656387.stm

I have money in an Icesave ISA I can't afford to lose. I hope this announcement is good news...

It seems that nationalising it protects nationals (100%?), much the same as Northern Rock did, but this still leaves me with £16k (ish) protected by Icelands Regulation under the passport system and then, if they pay up, the UK will protect me for £34k up to the £50k level?

cwcw

hawkesbaynz wrote: »

I had about £100K in an IceSave Fixed rate in the spring when rumour and speculation was running about icelandic banks (particularly in the Daily Mail if I can recollect). However as it was fixed I braved it and transferred out £65K in July when the fix finished.

Just read in FT thant Landsbanki has been nationalised. For the benefit of the population of Iceland
http://www.ft.com/cms/s/0/34681bc8-944d-11dd-953e-000077b07658.html

However after a couple of months nervousness in the spring I could not afford to do this again, particularly with my wife's increasing agitation. Transferred £37K by CHAPS at 10pm last night. Nil balance in my account this am.

I am not happy in being a lemming but I cannot afford to lose £37K of a house deposit. If the bankers and politicians were trustworthy I would not, but unfortunately these professions do not attract the best moral calibre of folk.

A friend in New Zealand lost about $200K to a financial institution which went bust earlier this year. I cannot afford it to happen to me. I have doubts whether there are sufficient funds in the Icelandic Passport scheme to cover us all.

Wondering where to put my money next............. dig a hole in the garden?

I transferred out at about the same time last night too and my balance has also gone down and shows as processed, but does this mean the money has safely left Iceland?

Birdie100

We obviously hope it has, and indeed we will ultimately get the money, because of the guarantees. I would also expect that should the passport system not payout, then the government will be forced to payout from the FSCS. All in all, intrigued by what will happen next. And to think we did this for a measly £35 extra a year...