Kaupthing & Icesave: MoneySavingExpert.com Official Note

paddcomp

I too have money in KE, most in a 3 year fixed term. I am worried, as I've recently lost £10K on my investments in Unit Trusts so cashed them and put them money in a safe place, Kaupthing!

Don't currently want to transfer again but if a claim via the FSCS was necessary what evidence would be required. As the banking is online I have no statements, would a screen dump suffice?

TIA


Martin is innocent:money: :A

Mercenary

I have very recently opened a KE account and am quite happy about leaving my money in the account as it is a registered UK bank and therefore subject to the UK rules.
KE does not appear to have a problem at this moment in time and anyone having a knee-jerk panic attack and taking their money out of KE will just contribute to creating possible actual difficulties for yet another bank! :rolleyes:
Look what happened to Northern Rock....it all snowballed because of mass panic, whereas if people had calmed down just a little and actually thought about what probable result their collective actions would cause to happen....namely the precise situation that they were so afraid of......then maybe things would have turned out differently.

There are too many ill-informed people who really do not have the first clue about what happens to their money when they put it into a bank account. They obviously think it just sits there, not moving and accruing interest until they want it back.

whirlingdervish

Its nearly the end of the day and i would just like to wish the savers in Icesave the best of fortunes. This compensation system must work, otherwise the whole industry is under a cloud and done for. Who would put savings anywhere but in a British govt. guaranteed account that has a Bank of England failsafe. No one is going to put more than £50,000 or £100,000 (joint) in any bank.

I am no smug expert.

I thought I was being very cautious in spreading my life savings between three accounts. I told my friends "I was not putting all my eggs in one basket" The accounts I chose were

1. Northern Rock Silver Saver

2. HBOS fixed rate ISA for 2 years

3. Bradford and Bingley Internet account

All of them failed and were taken over or Nationalised.

So I know the feelings that some of you Icesave savers have at the moment when you wonder if the safety net is really there or not. The Northern Rock debacle towards the end made me feel awful as i thought I was to lose a lot of money that I had worked very hard for (not as an investment banker may I add!!)
You may not sleep tight, but I hope there is good news for you in the coming weeks.

Best wishes

wolfman

~Chameleon~ wrote: »

Why the hell are people trying to blame Martin for this??????????????????

Did he stick a gun at your head and force you to invest in Icesave??? NOOOOO he didn't!!!

People are frustrated so it's understandable. They may not truly mean it, it's just a way of venting frustration.

As far as Martin is concerned I have found his advice to be great. Obviously this advice has backfired though. His position and living are made around giving financial advice. The referral links for IceSave for example. So to give bad advice in such a situation is costly. It's not his fault, but he has to feel responsible a little as it was his advice.

It was a difficult one to predict though. For me, I'm just annoyed that my money has been locked up. Something I should have a right to access, I don't.

I just hope someone, even the UK government bails the savers out. My tax money has gone towards bailing out plenty of other banks, why not my savings in IceSave. Ok, so it's an Icelandic bank, but I work and live in the UK. Losing my savings will affect me and my attitude to the UK market in a big way.

gaz77

CuriousMeerkat wrote: »

Hello,

I have around £13,500 in an Icesave ISA. The way I understood it, the amount up to £16,000 (ish) was covered by the Icelandic compensation scheme - and in the event it had to be used, it may take longer to get your money back.

My concern now, is the rumours that the Icelandic government will not be able to afford to pay this money out. If this is the case, there is a reciprocal relationship with 3 other Nordic countries to step in. If this doesn't work, then anyone with savings in Icesave under £16,000 will not get money back unless the UK government does something.

Would that be a fairly accurate summary?

I have £7000 in an Icesave ISA. I've been thinking about where the compensation will come from too. I've put things down the way I see it - I'd appreciate it if someone could put facts and figures to this:

1. I assume that the first step will be to liquidate. Although Icesave's investments may have lost value, they must still be worth a lot. I would imagine they should be able to pay off a good chunk of the compensation with this alone
2. The next step is the Icelandic compensation scheme. One post I saw said there was only about £80m in it
3. I suppose the Icelandic central bank and government are the next steps. People seem to be concentrating on this point as it could bankrupt the country
4. Next is the Nordic bank scheme. I would hope he Nordic banks would be big enough to cope
5. If the Nordic banks can't cope, would the Nordic government's bail them out?
6. Final source is the UK government and FSA. They've said they'll guarantee amounts between 16k and 50k. I can't imagine that the government (especially with an election on the horizon), would let people people with <16k lose out - there would be accusations that they only help out the rich. After the 10p tax fiasco, I can't see them letting taxpayers lose out.

Looking at all of this, I'm fairly confident I'll get most if not all of my money back. I do feel for those with over 50k in Icesave though.

I can accept losing the interest, but not having access to the money may be a problem. Will the payout all come at once, or would they make it in installments?
I'm self employed, and put money earned during the year into savings accounts to pay my tax bill. I'll need a payout by January if they want my tax. I'd imagine I'm not alone in this position

dunstonh

His position and living are made around giving financial advice.

No its not. Martin doesnt have the qualifications or the authorisation to give financial advice. Neither does he have that liablity. it isnt the purpose of this site to give financial advice. Martin is a journalist. This site is about providing information.

There has been a trend in recent times, mainly brought about by newer forum contributers that may have led to that "advice" perception. The focus on getting best interest rate or cheapest insurance without consideration for quality is more forum driven than article driven. It is also a fault of the comparison websites which focus too much on best price or best rate.

There was nothing wrong in what Martin did. The information and detail was there and people could choose to read it if they wish.

On Ch4 news it came across as if Martin was taking the blame for the comparison websites which print raw data rather than his own material and website.

br1anstorm

The depressing feature of the events of the last few days has been, again, the deadly combination of Peston's tabloid-style quest for "scoops" which he then reports in dramatic terms, and the tendency for media journalists' first line of questioning to be "who is to blame" (as in Jon Snow's interview of Martin on Ch 4 News). More measured analysis and less sensationalist presentation would have been wiser and more useful.
br1anstorm

Dustangle

whirlingdervish wrote: »

The accounts I chose were

1. Northern Rock Silver Saver
2. HBOS fixed rate ISA for 2 years
3. Bradford and Bingley Internet account

All of them failed and were taken over or Nationalised.

None of them have "failed". You money in these institutions is as safe, or even safer, than before. It is appalling that after all that's happened in recent months you characterise these British institutions as unsafe places to put money. The ones who have something to worry about are those who lent money to non EU banks.

Rhino666

cas84utd wrote: »

I just spoke to KE.

For those wishing to terminate your KE fixed rate savings early, there is a 1% interest penalty and interest will be calculated and added up to the termination date.

Can someone clarify this for me please. Does this mean that a one year bond closed six months in has interest paid for six months at 6.67 % ?

KeithP

Rhino666 wrote: »

Can someone clarify this for me please. Does this mean that a one year bond closed six months in has interest paid for six months at 6.67 % ?

Rhino, send an email to KE asking them your question.