Icesave - A bit of bad news

Former_MSE_Dan

Just to keep you guys updated, the sky website has now changed the the following:

If Iceland goes bankrupt, the UK will not cover the first £16,170

zaccy

This article raises quite a few questions and the answers are not too reassuring.

http://www.timesonline.co.uk/tol/money/savings/article4898782.ece

below are a selection

"Q: I managed to withdraw my money from Icesave yesterday, but they say it takes four days to transfer. Will my money come through or will Icesave retain that cash because of today’s freeze on accounts?
A: An Icesave spokeswoman said she did not know for certain, but as the transfer process takes several days and things came to a halt today, there is a sizeable chance that the money will be stuck in the system."

"Q: How likely is that scheme to be able to pay out, given the upheaval in the Icelandic banking system?
A: Good question. The Icelandic scheme has only £88 million in the kitty to cover deposits totalling £13 billion"

"Q: Is Icesave bust right now?
A: No. The Icelandic Government is battling to save Landsbanki, Icesave’s parent company, along with the country’s other major banks. As long as it has not been declared bust, savers cannot make any claim on either the UK or the Icelandic deposit guarantee scheme. "

Stormy

God this is looking terrible, so much for thinking my money was safe, looks like I might have lost my entire life savings now.

!!!!!!! As a tax payer I helped bail out both Northern Rock and Bradford & Bingley and watch my money disapear down Icelands plug hole..

langtoft_lad

luvpump wrote: »

At This Juncture i would Just be Happy if you got ur Money back !!! never-mind "Wrappers" ..

There was no need for that :rolleyes: - I already said I can breathe a sigh of relief that I "should" get my money back...

...but it's a perfectly reasonable and civil question to ask if it is likely to lose it's tax free wrapper & whether I'll be able to transfer any compensation received into another ISA.

Five years savings and 20% tax relief is not insignificant.

Stonk

If I lose £16,170 that the FSCS should be paying (in its stated role of topping up the Iceland compensation scheme), then my position will be that the goverment owes me that money, so I will be withholding payment of all kinds of tax until I'm even with them. They can whistle for it.

Fella

Stormy wrote: »

God this is looking terrible, so much for thinking my money was safe, looks like I might have lost my entire life savings now.

!!!!!!! As a tax payer I helped bail out both Northern Rock and Bradford & Bingley and watch my money disapear down Icelands plug hole..

All isn't lost yet Stormy. Hopefully we'll get some (real) concrete news soon.

I can't believe the Govt will not comment EVER

And I can't believe that when they do comment they're going to tell IceSavers that they are screwed

So all is not lost yet. Even though it's been a spectacularly bad day so far.

isofa

Can't really understand why the Sky website is being quoted as a source of authority. Hardly surprising there are mistakes on their website.

Surely better to stick to broadsheet and experts, such as the FT?

EagerLearner

MSE_Dan wrote: »

Just to keep you guys updated, the sky website has now changed the the following:

If Iceland goes bankrupt, the UK will not cover the first £16,170

But the country itself is unlikely to go bust if the EU leaders all pull together as they surely should now.
I want the UK government to reassure me with facts, not the media, come on UKPLC.

Stormy

EagerLearner wrote: »

But the country itself is unlikely to go bust if the EU leaders all pull together as they surely should now.
I want the UK government to reassure me with facts, not the media, come on UKPLC.

Iceland isnt in the EU!

zaccy wrote: »

This should be the site to get the official statements from

http://www.fscs.org.uk/

Except there aren't any.

Why?

I guess its too early, no one seems to know whats going on..

DigitalJedi

EagerLearner wrote: »

But the country itself is unlikely to go bust if the EU leaders all pull together as they surely should now.
I want the UK government to reassure me with facts, not the media, come on UKPLC.

For me this is now the most important thing to get news about.

How secure is the country of Iceland? In the event (unlikely or not) that the government of Iceland cannot meet its commitments, will other nations EU or otherwise help prop it up? Even if only because of the fear of the ramifications on the global economy.