Fixed term KE

temba

Far from wanting to add to the panic going on over Kaupthing, I do have a question that I haven't found the answer to:

Is the £50000 FSCS guarantee here to stay? I ask because I have £7000 in a Kaupthing account, and I was just about to buy a fixed term account for 36months. I am only happy to do this if I know my money is safe for the whole time it is there.

Thanks
T

temba

I am afraid I didn't understand the only response I've had.

Anyone else? I only want to know if there is any time guarantee on the £50000 safety.

nzseries1

There used to be a clause in the terms and conditions that KE could transfer your savings to Kaupthing Bank hf, a bank not covered in its entirety by the FSCS scheme. However, this clause no longer exists in the terms and conditions.

Theoretically, KE and change their terms and conditions again at any time with 30 days notice. So the answer to your question is no, there is no 100% hard and fast guarantee.

But in my personal opinion, I would still go for the 3 year fixed rate, since you can withdraw at any time.

(also, Rebecca's post at #2 is spam - ignore it)

Reaper

That's because the only responder was spam that is being added to every thread.

The levels of compensation can be increased/decreased whenever they feel like it. However this change has been long planned - it is not just a quick reaction to the crisis. It is also not a limited time offer (unlike the Irish guarantee) so you should be ok.

There is a bit of turmoil in the Icelandic banks today though. If I was you I would wait for 2 days before deciding to go ahead. Everything should be clearer by then.