Icesave/Kaupthing - is Martin to blame?

Caudle

31May2008 wrote: »

i've just checked on the banking and savings section of moneysaingexpert.com to see kaupthing edge is still martin's 'top pick' at 6.55%

i know kaupthing is currently in liquidation but what about that rate - you can't argue with it!

But, if it true that KE deposits have been taken over by ING, then it is possible that ING's compensation system will cover them... in effect you will be wholly reliant on the Dutch compensation scheme.

I am a bit surprised that Martin's best buy is still KE. Perhaps he needs to take other factors (i.e. not just the interest rate) into account now that the financial climate has changed? Just a thought!

MacPherson

I watched Jon Snow interview Martin about Ice Save last night.

I felt Snow made a nasty, personal and unnecessary attack on Martin. I did take a cash ISA on the back of Martin's tips but I accept that it was completely my decision. Whatever happened to personal responsibility? Maybe that's the real reason behind the credit crunch - everyone seems to have forgotten what it is.....

Dan29

Cloudane wrote: »

I feel like such an anorak, but is there an archive or youtube video of the C4 interview?

http://link.brightcove.com/services/link/bcpid1529573111/bclid1838545851/bctid1842740999

3'21" in.

gris

Dan29 wrote: »

http://link.brightcove.com/services/link/bcpid1529573111/bclid1838545851/bctid1842740999

3'21" in.

Wow thanks for the link - hadn't seen it yet - Martin got stitched up big time :eek:

ThrobsBlackHat

NonGeographicalMan wrote: »

Him saying the quality of a bank does not matter and only the rate of interest matters is ridiculous. Would he recommend the cheapest grade of petrol if it was proven to ruin your engine in only a few thousand miles?

He didn't say it didn't matter. He said he couldn't judge it.

Chi_2

Way it is the same.

Gareth56 wrote: »

No way is it the same, if you think about it for a femtosecond you'll see why. Domestic Banks vs Foreign Banks, you decide which offers the most protection for your money!!!

That's all well and good, but what makes you think the UK comensation system is any more robust than other countries (I don't say all coutries here, but I wasn't the one who used the blanket term "foreign banks" in the first place - a meaningless term, really since not all banks are the same)? Ireland has offered unlimited protection for deposits in it's banks after all...

I've thought about this for more than a femtosecond, too. You have your opinion, I have mine.

Caudle

I think the point is that it is pretty unlikely the FSCS would even have to spring into action if it is a UK bank.

The government will, most likely, take any action necessary to safeguard ALL savings... not just the first £50k.

With foreign banks the UK govt may not be quite so willing to bail them out like this. Icesave may be a one-off in that respect.

Gareth56

Chi wrote: »

Way it is the same.



That's all well and good, but what makes you think the UK comensation system is any more robust than other countries (I don't say all coutries here, but I wasn't the one who used the blanket term "foreign banks" in the first place - a meaningless term, really since not all banks are the same)? Ireland has offered unlimited protection for deposits in it's banks after all...

I've thought about this for more than a femtosecond, too. You have your opinion, I have mine.

It seems the word "foreign" appears to have upset your delicate constitution. Never mind I'm sure you'll get over it :rolleyes:

At least I know for a fact that my money is safe here in the UK up to £50K per UK institution. :j

Chi_2

Caudle wrote: »

The government will, most likely, take any action necessary to safeguard ALL savings... not just the first £50k.

With foreign banks the UK govt may not be quite so willing to bail them out like this. Icesave may be a one-off in that respect.

But their respective countries' government might (once again, you'll note I'm not saying all foreign banks or all countries are equal in this respect) - these banks don't just exist of international deposits, but have domestic arms, too.

Additionally, the UK Government does not have unlimitedly deep pockets (the US bailout of the banking system was half our GDP) - the number of banks that can be propped up is most certainly finite.

My point - that the OP seems to have missed - is that blanket statements like the one he made are smug, near-to-useless and derogatory. How about this (better, but still quite disparaging) rephrasing:

If someone decides to become a "rate tart" and put their money into a comparatively risky (however the hell we can measure that) or unprotected bank for the sake a a couple of extra % interest on their savings then if that bank goes t**s up then they have nobody to blame but themselves. Perhaps if people weren't so greedy then they may still have access to their money.

?

EDIT:

Gareth56 wrote: »

It seems the word "foreign" appears to have upset your delicate constitution. Never mind I'm sure you'll get over it :rolleyes:

At least I know for a fact that my money is safe here in the UK up to £50K per UK institution. :j

And I know my money is "safe" in FSCS-registered foreign banks too. So what's your point?

It isn't the word "foreign" I object to, any more than any useless blanket term.

Gareth56

I'm so glad your money is safe, that makes two of us, however it still doesn't disguise the fact that if you decide to become a "rate tart" and put your savings into a foreign bank to get that extra 1.5% or whatever and then that bank goes t**s up you have to accept the consequences. Personally I'll take my chances with the UK financial regulatory services when it comes to protecting my money.

QED