Icesave-please help/advice!!!!

Meadows

http://www.guardian.co.uk/money/2008/oct/07/savings.banks1
The government faces having to explain to thousands of British consumers how they have may lost savings following the collapse of the Icelandic back Landsbanki.
More than 300,000 Britons are thought to have had their cash in the bank's UK savings arm Icesave.
Most thought they would have up to £50,000 of their savings covered by the Financial Services Compensation Scheme (FSCS) in the event the bank failed.
However, since Landsbanki went into receivership this morning it has emerged that the compensation scheme was not quite as originally billed.
The UK's FSCS confirmed today that it is only responsible for "top-up" payouts to customers of Icesave.
It said this afternoon it was only gearing up to cover amounts over and above the €20,000 (£16,264) protected by the Icelandic government's deposit protection scheme.
This means that if the Icelandic government was unable to meet its obligations to UK savers they would only get back any holdings between €20,000 and £50,000; those savers with less than €20,000 would receive nothing.

Some UK savers are understood to have had as much as £300,000 in their Icesave accounts, and the bank is thought to have a large number of tax-free Isa customers.
Undermining trust

Unless the Financial Services Authority steps in to act, today's development threatens to undermine trust in a banking system already reeling.
It is unclear at this stage how the FSCS allowed savers to believe that the first £50,000 was covered by the scheme. It said this afternoon: "As an Icelandic bank Icesave is not automatically a member of the FSCS, but it opted to become a 'top-up' member.
"This means that eligible retail savers with Icesave's UK branch whose savings exceed the Icelandic limit would benefit from top-up compensation from the FSCS covering the amount over the Icelandic limit up to the new FSCS compensation limit for deposits of £50,000."
This afternoon there was still some doubt as to whether the scheme would be triggered at all. If the bank continues to trade with the Icelandic government's backing the compensation would not be required.
The founder of Moneysavingexpert.com, Martin Lewis, called on the UK government to clarify its position.
"It's unfairly leaving people panicked and worried - the UK should be prepared to step in if necessary. So far the Treasury isn't saying whether it will pay that money if Iceland can't," he said.

"Countless small savers have a few thousand [pounds] in Icesave's best-buy cash Isa. The Isa scheme was set up by this government to encourage savings, and as such it has responsibility."

The fear now is that Iceland, whose entire annual economic output is only £8bn a year, will be unable to fund its compensation scheme.
A £4.9bn bill to compensate UK account holders of Icesave would far exceed the country's dwindling foreign reserves.
Many are now hoping that the central banks of Denmark, Norway and Sweden will step in to support their troubled neighbour.

All we can do for now is speculate and worry, I and my husband have a total of £33,000 in Icesave, but as it is in three accounts totalling about £16,500 for both of us, it looks as though we may not see any of this back. And at the ages of 52 & 53 we can not easily replace these funds, we have worked hard to build up some funds towards retirement, I like many thought that we were being safe with our money and looking for a good rate of interest. What we have in UK accounts may not be that safe yet who knows.

I took out these accounts on information within this site, and feel that Martin could have given us a little more of a heads up to the state of things, I get regular news letters from the site and never once have I seen anything to say beware! Why not Martin? You have given us plenty of heads up on gas & electric why not Icelands economy.

cs15

Super_Ted wrote: »

I'm not sure how much more clear I can be for you.
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There is nothing inherantly safe about a bank, they can and do fail leaving depositors, shareholders and other counterparties in the soup.
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Some banks are safer than others, people investing in the Icelandic banks chose less safe banks and got a higher rate of return. I agree the FSA could and should have done more to regulate the risk to the UK citizen especially after the level of deposits got so large that it was clear any failure would impact the innocent taxpayer. But eventually the buck stops with the account holder.
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Repeating that you want your owned property back does not change the fundamental objective reality which is that you gave your money to people that could not be trusted with it. Sorry.
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I hope you get your money back.
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ST

Nope.
I didn't give it a to a bank that could not be trusted with it and the buck does not stop with individuals or me matey. I gave it to a bank which was approved and advertised by the UK financials industry and markets. So the buck stops with this industry not individual members of the public that if they put money in a bank expect it to be safe and guarenteed. If I put money in a shame scheme I expect risk. I put the money with the bank that offered the best rate on offer, that is what many people do. You make it sound like we were reckless fools for putting money with a bank that is backed by a nation and the whole of Scandinavia, I think most people 6 months ago wouldnt have thought that was reckless, including what Mr Martin said on here. I don't get out of bed every day to work for some bank to lose it and then require someone like me inferring I was reckless when I havent been.

Richchad

Super_Ted wrote: »

I am very sorry for the people who have lost money, I wish there was a magic wand to get it back for them. Unfortunately there is not.
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ST

No one has lost any money yet......:D

backfoot

Super_Ted wrote: »

No this thread was started by a person looking for advice before the bank went kaput. The good advice they got was ridiculed and shouted down by economic illiterates and I suspect some people reading this website may have kept their money in Iceland on the strength of those posts.
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Without one sign of contrition those fools are now berrating me and others for speaking the truth.
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I am very sorry for the people who have lost money, I wish there was a magic wand to get it back for them. Unfortunately there is not.
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ST

It just doesn't sink in does it? Your motive is not only to deride those who have fallen foul of this crisis but more to pile on your self righteous comments that you got it right and some other 'internet people' didn't. So very well done. There you are you won,your clever,your wonderful.

Think about it later,perhaps before you sleep, and consider what an insensitive and unpleasant tw*t you are.

Rachman_2

Not read all the pages (yet) but has Martin made any comment, on here or in the press, about his previous recommendations on where to plough your money and keep it ? He of all people ought to know that people do what the media tell them to do and to chase interest that was so far above what the rest of the 'sensible' market was paying would come with a catch.... well, here it is.

I am also not surprised at the outcome - the OP asked a sensible question - a lot of people who (with respect to them) knew absolutely nothing about macrofinance, the Icelandic banking and financing situation, the Financial Services and Markets act or had even bothered to read the terms of the pithy and relatively useless guarantee scheme decided to give out what in any other ether would be practically investment advice. Then they go all MSE and be touchy feely with hugs when it goes t1ts up.

I have been told off, been told I would be blocked from people's screens etc. on here, for telling the truth. Are so many of you still in denial and thinking it's someone else's fault and who will save me ?

Genuine question - have any of those people emailed the OP to apologise for doing that ?

Seriously, MSE needs to learn something from this - like it failed to do with the betting on football matches one - if you DON'T have a clue, don't just pipe up with what the tabloids say or at least qualify your 'advice' - some people just believe the written word and it causes them problems.....

Super_Ted_2

ElusiveLucy wrote: »

Sorry, but I beg to differ here - When I took out my Cash ISA I wasn't told that my savings could go down as well as up, as I would have done if I had taken out a risky investment. My Cash ISA was supposed to be my "secure" savings, I have a small amount of money in stocks & shares ISAs which I am prepared to take a risk with.

Like many others on here, I have worked really hard to save the £25k I have/had with Icesave. Whatever you do, don't follow my financial choices in the future - first Equitable Life and my pension, and now Icesave and my savings :eek:

I appreciate where you are coming from but as I and other people have pointed out there are two types of risk to consider when you pass your money to someone else.
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Firstly is what they are doing with it going to go up or down in value? I.e is it going into shares, are shares rising falling, does the person know what they are talking about re. share values?
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Secondly are they themselves trustworthy, how many other peoples cash are they looking after? Can they handle such large ammounts, will they skip the country with your cash.
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Historicaly speaking banks do quite regularly go bust. They are just another type of company.
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Not everything can come with every warning, the coffee in your coffee cup is hot, the floor is wet etc....
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ST

wolfman

It's a difficult situation to be in.

I left my savings there. I didn't want to follow the flock and pull out my savings. As to whether that had any impact I don't know, maybe I should have taken out my savings as the wheels may have already been in motion.

It's not so bad for me. My folks have just under £50k in there. For me, I'll have a chance to earn back an ISA or two in my life time (although it's a bloody pain), but my folks, close to retirement it's a big blow. Especially as pensions aren't worth what they once were.

I just hope everything gets covered. It'll certainly alter my perception of the current government depending how it's handled.

vishy01234

cs15 wrote: »

Nope.
I didn't give it a to a bank that could not be trusted with it and the buck does not stop with individuals or me matey. I gave it to a bank which was approved and advertised by the UK financials industry and markets. So the buck stops with this industry not individual members of the public that if they put money in a bank expect it to be safe and guarenteed. If I put money in a shame scheme I expect risk. I put the money with the bank that offered the best rate on offer, that is what many people do. You make it sound like we were reckless fools for putting money with a bank that is backed by a nation and the whole of Scandinavia, I think most people 6 months ago wouldnt have thought that was reckless, including what Mr Martin said on here. I don't get out of bed every day to work for some bank to lose it and then require someone like me inferring I was reckless when I havent been.

Absolutely 100% well said - you are so spot on and say it as it is. That SuperTed idiot has been gloating at everyone's expense throughout this entire thread and I have found it repulsive.

csiman

please stop feeding that troll superted. I have reported him for just being a complete scumbag. These types must lead a very miserable lonely existence so take some pity by not filling his ridiculous life with forum fodda.

homer_J123

Super_Ted wrote: »

I appreciate where you are coming from but as I and other people have pointed out there are two types of risk to consider when you pass your money to someone else.
.
Firstly is what they are doing with it going to go up or down in value? I.e is it going into shares, are shares rising falling, does the person know what they are talking about re. share values?
.
Secondly are they themselves trustworthy, how many other peoples cash are they looking after? Can they handle such large ammounts, will they skip the country with your cash.
.
Historicaly speaking banks do quite regularly go bust. They are just another type of company.
.
Not everything can come with every warning, the coffee in your coffee cup is hot, the floor is wet etc....
.
ST

Do you think your average joe would know the answers these questions?

Do you 'really' hand on heart feel that you should investigate Icelands 2nd biggest bank in such a way?

Have you, do you, do such things when you open bank accounts in the UK?