Worried about Overseas Banks: I want to play safe!

Caudle

Hi all you money gurus. Can you help me with this (I'm sure I'm not the only one in this position).

Having read, on this forum, all about Kaupthing Edge :eek: , I've moved all the money I had in my account with KE (well all but £100)... a total of around £34k.

I also have concerns about having some of my money, in these uncertain times, in outfits such as ING Direct (about £13k) and FirstSave (about £34k). The former is based in Holland and the latter in Nigeria.

I know ING is not highly regarded on here, and I am minded to close that account although I only recently opened it so am getting 6.5% - but I am worried because it uses the Passport Exception. Am I right to close it?

And what about FirstSave, which is 100% covered by the FSCS? Does anyone have an account with them and, if so, do you have any concerns?

jamesd

The money is covered by compensation schemes so it's safe enough. You might want to diversify further so you have less money to wonder about if one or more of the banks that you use does have trouble.

With ING using the passport scheme you should check with them to find out how much their scheme covers.

The main issue here is what will cause you to lose sleep, not the safety of the money.

Baldur

jamesd wrote: »

With ING using the passport scheme you should check with them to find out how much their scheme covers.

€38,000 plus any balance up to £35,000 being topped up by the FSCS, from this table on the main site.

Caudle

Thanks for the replies so far.

I realise FirstSave is fully covered by FSCS (up to £50k) but their interest rate has just dropped to 6.0%, and is the lowest paying of any of my accounts. That, coupled with the fact that the FirstSave is ultimately owned by a Nigerian bank, makes me slightly inclined towards withdrawing my money.

Any other FirstSave account holders on here? If so, what do you plan to do?

mrgrill

Caudle wrote: »

I realise FirstSave is fully covered by FSCS (up to £50k) but their interest rate has just dropped to 6.0%,

Does this mean that the money I have in there is now getting this rate as opposed to the 7.1% or whatever it is, I was getting when I opened it?

Caudle wrote: »

Any other FirstSave account holders on here? If so, what do you plan to do?

I'm not sure what to do regarding firstsave. I have a fixed term bond for 12 months. If I'm not getting this lower rate there isn't much point of keeping it. If I'm still on the higher rate, then I may just keep it open.

brookhaven

This has just arrived in todays e-mails from FirstSave...

> We are writing to advise that in accordance with Section 9 of the
> FirstSave General Terms & Conditions, we are required to give you
> at least 30 days advance notice of any changes which may affect your
> account and could be to your disadvantage.
>
> The change is to paragraph 6c of the Terms & Conditions, which
> relates solely to Fixed Rate Bonds and their early closure in the
> instance of the account holder moving abroad. Please be advised,
> that in addition to the existing penalty of 90 days loss of
> interest, there will also be an administration fee of £250.00. This
> change will be effective from 1st December 2008.
>
> In order to view a copy of these Terms & Conditions, please visit
> our website at https://www.firstsave.co.uk

(e-mail Dated 3 Nov 2008)

isofa

jamesd wrote: »

With ING using the passport scheme you should check with them to find out how much their scheme covers.

Baldur wrote: »

€38,000 plus any balance up to £35,000 being topped up by the FSCS, from this table on the main site.

ING Direct say something different from their FAQ here: http://www.ingdirect.co.uk/general/faqs/?section=savings

"ING Direct is:
* We are covered by the Dutch Deposit Guarantee Scheme.
* Under the scheme our customers receive €100,000 (£77,700 approximately) of protection per person."

Baldur

isofa wrote: »

ING Direct say something different from their FAQ here: http://www.ingdirect.co.uk/general/faqs/?section=savings

"ING Direct is:
* We are covered by the Dutch Deposit Guarantee Scheme.
* Under the scheme our customers receive €100,000 (£77,700 approximately) of protection per person."

They would say something different, as things have changed dramatically since 6th October, when the posts which you quote were made....

isofa

Baldur wrote: »

They would say something different, as things have changed dramatically since 6th October, when the posts which you quote were made....

It was on the 7th October 2008 that the Dutch Minister of Finance increased the guarantee to 100,00 Euros per person, (for one year only)...