Icesave-please help/advice!!!!

lokiman

According to Sky News, the FSCS has just announced that it expects Icesave to default on the deposits made by UK residents, and that affected depositors will have to go through the compensation process to be reimbursed.

Scooby64

jrs101 wrote: »

The website has been down all day. Its an absolute f****** disgrace keeping us UK people here in the dark ! Some kind of update or whatever on their website is the least they could do....

And say what? - truth is they won't know WHAT they are going to do yet. My guess is that they are about to default on some major loan from another filancial institution. All that is happening is the equivalent of Chapter 11 in USA of CVA in the UK. They need to restructure (if they can) and that requires analysing the figures and meeting with potential investors.

I know it's frustrating, but it all takes time

terricfan

If FSCS doesn't compensate then collectively we're 300,000 votes so hopefully we're all dispersed in marginal constituencies.

chmmy

I too did a CHAPS transfer yesterday evening for £3k . It has left icesave, but not shown up in my bank account. Gutted.

cazzybabe

PintoPotts wrote: »

TO CLARIFY RE: The first £16000

I have phoned and spoken to the FSCS the made it VERY clear in no uncertain terms that they will only be able to help with the amounts between £16000 to £50000, the amounts £1 to £16000 is the responsibility of Iceland.

They made it 110% clear that if Iceland fails, they will not step in and cover the first £16000.

So the first £16000 is in the hands of Iceland and there is NO safety net offered by the UK.

I have £10000 in Icesave cash ISA's and I am worried!

Oh S**T !!!!

forevergrey

I also made a CHAPS withdrawal yesterday morning and it was in my linked account at 4.00pm. I can't see any way this can rebound. In fact when I made a CHAPS withdrawal in error instead of BACS I was informed that once initiated, a CHAPS cannot be stopped.

homer_J123

EagerLearner wrote: »

We have £16700 in an ISA with them and £6,000 fixed term account = £22,700. So that seems to be within the £16 - £50,000 remit. BUT what happens with interest? Obviously my ISA has interest within that £16,700 and I worry whether I will get that back The fixed interest account matures next month...

Of your £22,700, Iceland is responsible for the first £16,000 of that, if Iceland goes under (pardon the pun) you will lose £16,000.

The FCSC will ONLY re-imburse you the £6,700 (i.e. £22,700 less the first £16,000).

bazster

Okie wrote: »

the definition of risk-free, in purely economic terms, is where your capital base is not exposed to risk of depreciation (excluding the effects of inflation). For consumer savings, the status of 'risk free' is ultimately underwritten by some kind of institutional guarantee from a government or regulator. Under this definition, government bonds, NS&I accounts, and deposit accounts held in commercial banks/building societies/credit unions are all considered to be risk free. Whether you chose an account with a rate of 3% or 5% does not change it's fundamental risk free characteristics.

Risk is to be distinguished between "credit risk" (the risk that you lose money because a debtor defaults) and "market risk" (the risk that you lose money because you sell an asset for less than you paid for it).

Consumer savings are not subject to market risk, hence the (erroneous) belief that they are risk-free. However, they are most certainly subject to credit risk. Having them underwritten by some institution doesn't eliminate the risk, it simply shifts it to someone else.

renard_2

Those of us who think we are safe because we have a BACS transfer in progress:
study the information about BACS given here by the Financial Ombudsman:

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/38/standing-orders-direct-debits-38.htm

If I read it correctly, the actual withdrawal from Icesave and credit into your linked account does not take place until the third banking day! :eek:

So, if Icesave has gone bust, does that mean that transfers currently in progress will be "bounced" by them on the third day?

richleeds

I presume no ISA interest will be paid if we have to claim compensation and we will have to be happy with getting our initial investment back only?