Can Someone Advise Me Urgently Please

OliverDog_2

Hi

Please could somebody give me some advice. I wrote on here last year as I deposited my life savings into the Kaupthing Bank in Iceland (NOT a Kaupthing Edge Account) as my husband was working there at the time.

We have seen our deposit of £70,000 reduce to £35,000 as of last week reduce because of the falling Krona. We have just watched the BBC News and do not understand how we can be protected by the Iceland Government for the whole of our savings on one hand, then on the other the Prime Minister states that Iceland might go into Bankruptcy. Surely if this happened we would loose all our money?

I have just been on the bank website, our money is now only worth £27,000 but if we loose this we have nothing anywhere else. Does anyone think we should withdraw it asap or should we leave it because of the guarantee, we have no financial experience as you can see by the mess we (I) have made.

Please could someone help asap as we cant sleep..

Many thanks

temba

I am not the person to advise you, though I'm sure someone here will be along soon to help you. I just wanted to say how sorry I am that you have found yourself in this situation. You are the victims of this big mess through no fault of your own. Try not to worry. Someone will be able to advise you.

Wishing you lots and lots of luck, and a good night's sleep.

Reaper

I don't really know what to suggest as nobody can ever really predict a market or currency. Holding a bank account in a foreign currency always brings risk because you are subject to the whims of currency fluctuations.

The Krona has been dropping steadily for some time now. I'd be tempted to withdraw it if it was my money, but you could leave it for another day or two to see what the government is going to do. If they do enough it might just reassure the markets and stabilise the currency - who knows?

Or maybe you feel you have had enough sleepless nights in which case withdraw it now and accept the loss in exchange for piece of mind and a good night's sleep.

RayWolfe

If you live and spend in Pounds, take it out. Put it back into Pounds and keep it in pounds. If however you live and spend in Iceland your money has not devalued, except for the inflation about which you can do nothing other than return home.
Don't risk any more than you have to and you have taken the twin risk of saving in a foreign currency and in an apparently failing country.
Sorry to be the bearer of bad news but I can't see it getting better for you.