Should i pull out of KE?

crazydad

hi
i have most of my savings in Kaupthing, following todays news about icesave, should i move my money back to my english bank for now until everything settles down?

thanks

gax23

crazydad wrote: »

hi
i have most of my savings in Kaupthing, following todays news about icesave, should i move my money back to my english bank for now until everything settles down?

thanks

I have. I'd rather lose 30p a year in interest than risk losing the lot.

MadSage

Maybe I'm wrong, but as I understand it, Kaupthing Edge shouldn't be affected by the situation in Iceland. What I do know is that our money in KE is covered under UK law, up to £50000 as of today. Essentially that makes them an "English bank". Also, KE still maintain today that their business is strong. Yes, they could be lying, but the fact that our accounts are covered by UK law is enough to keep me there right now.

Personally, I wouldn't panic yet.

crazydad

thanks for the repies. it's just that icesave haven't gone bust or anything, it's that they are more or less saying ' we've got your money but you can't have it back!!', so the government cover of 35000/50000 wouldn't matter because the money is 'still there'. or am i reading this all wrong?:embarasse

IT_nerd

Until today I would have told you not to. I would have told you to have faith in the british saver and relax.
But with the news about icesave (Myself having £1750 in there. Should I deduct it from my sig?) I would now say just withdraw.
Because if you don't 100 other morons will. Creating another run.

I kept mine in because I had faith. Faith in people not being sheeple.
Don't be naive like me.

yowza

Kaupthing website says:
KSF is a registered UK bank, with a UK banking license, and as such we are required by the FSA to hold adequate capital resources, and sufficient liquidity. The same FSA framework applies to KSF as to any other UK incorporated bank.
Your deposits are permanently held here in the UK. This means funds deposited with Kaupthing Edge UK are deposited with Kaupthing Singer and Friedlander Ltd (KSF), a separately incorporated UK company. KSF shares are owned by a single shareholder, its parent Kaupthing Bank hf. This is a similar structure as Abbey, who are wholly owned by their parent company, Santander.

That said, I've just actioned a CHAPS to withdraw 32 K leaving a minimum balance. I shall be overseas shortly for a few weeks and don't want any more worry.

My advice to savers is do whatever makes you happy (I survived the flower generation).

MABLE

Well I have today arranged by bacs to withdraw money from my instant access account only because this money is earmarked for a large bill due at the end of October. Also with my

MABLE

Well I have today arranged by bacs to withdraw money from my instant access account only because this money is earmarked for a large bill due at the end of October. Also with my fixed rate account I am very happy for that to remain.

I have spoken to KE staff and advise the situation but things can change and would really be caught out if I had to wait to get this money back.

mobfant

I've moved mine out via CHAPS today after paying £20. There are other UK banks with similar rates of interest that are safer than an Icelandic bank at the moment, and if you value safety ahead of interest rates, somewhere like Nationwide is far safer (though obviously not guaranteed). You're covered via the UK scheme if Kaupthing goes bust but that might take 3 months or longer to pay out, which sucks if you want to buy a house or something, and may not/probably doesn't pay interest over that time period so you'd be worse off than in a slightly lower interest account that is safer.

It's up to you. More peace of mind vs, well, not much really.

MadSage

I'm just keeping my eye on the situation. By that I don't mean just reading these forums. I'm keeping an eye on the KE website, their financial information, share price, and other websites in case announcements are made, and making my own mind up. At the moment, things look ok. They are having some difficulties, but apparently they have just received a loan from the Icelandic government which should be a big help. The fact that savers are starting to withdraw is a little worrying, because that will not help the bank, but KE pride themselves on their diversity. Like any sensible business/person, they don't keep all their eggs in one basket, so hopefully that will see them through.

downs523

just because there covered for 50k doesnt mean its ok, if it does go bust i bet it will take ages to get your money back. why have the hassle of that??

just withdrawn all my money from KE not worth the hassle of things to come