'Icesave... angry, frustrated and upset...' blog discussion

blondieleopard

in principle, I will NEVER put any money into Iceland again...no matter what rates they offer....

have withdrawn everything from Kaupthing

Philosophical_Matt

...large plaudits to the Chancellor. They strictly didn't have to pay up for the money defaulted by the Iceland protection scheme. I think they've acted pretty rapidly given the magnitude of the situation and am enormously relieved. I also think the bank bail out - but with hefty strings - is well put. People who accuse them of dithering should consider the response of the German government for instance.

Now my issue, as so many others will be cash flow, as I had about £20K in ISAs and savings there which I have been living off on a monthly basis whilst trying to set up my own business (exquisite timing I'm sure you'll agree). Next months rent...oh dear.

We shall see how long repayment will take...fingers crossed for a rapid resolution. I'll be glad to get my capital back at all - but I'm quite sure ISA holders will be given some mandate to move their savings into a UK ISA provider.

I also wanted to say absolutely no hard feelings to Martin. I did read the small print, and what reassured me was the mutual support of the Scandinavian governments. I felt that even in the worst case the governments of Norway, Sweden and Demark would pick up the bail out. I was wrong and am very surprised.

On a final note, whilst I'm sure few are feeling very charitable, spare a thought for the Icelandic people - who in the main are normal working people like us. When governments default on cast iron protection schemes and cannot drum up support except from Russia, the prognosis is grim. I think Iceland is going to return to being an isolated fishing backwater for a generation - as who would invest in them now.

Nice to get that all off my chest. Good luck all in retrieving their cash!

sjohnson57

Given my complete lack of confidence in any Icelandic bank, yesterday am i set up a CHAPS transfer from my KE account to withdraw the small amount i had in there. No sign of it in my KE account or my linked account, no response to my email query and contact centre permanently engaged. Anyone experiencing similar?

cosmetichamster

Hello
here's the official confirmation from the Treasury in full text, just released:

http://www.hm-treasury.gov.uk/press_101_08.htm

I for my part am breathing a huge sigh of relief - nearly 10k of my ISA money is stuck with Icesave. Their website has still not been updated, and their disinformation in the days leading up to collapse beggars belief - as is their (legally questionable) freezing of all our savings & investments.
If you can, take a screenshot of your online statement so you can prove your claims.
Hope the Treasury text helps. Good luck to us all.

cosmetichamster

Forgot to add that the Treasury specifically mentions that it WILL protect the tax-free status on payouts for Icesave ISAs:

"3. Arrangements are being put in place to ensure that all ISA customers of Icesave will continue to benefit from the tax-free status of their accounts.":j

I hope this reassures fellow Icesave ISA holders.

GWEPM

Alastair Darling has just said specifically that the rescue package will include repayment of British investors savings with Icesave above the £50K limit. Not that I have that much, but some here will be greatly relieved!

anniebeetham

I have an ICESAVE instant access account & an ISA with ICESAVE. I haven't looked what other people have said in response to Martin's blog but I hope that they are being supportive. No one can change the way Martin feels (angry, frustrated & upset) but we can say that there's no need to.
We are all grownups here - as Martin says, he gives the facts, the pluses, the minuses, advice on how to protect your savings, safety nets etc etc. The message has never been I think this is the best ever - you must go for it - about anything.
WE have to take responsibility for our own decisions.

lilmismayhem

Just copied the below from FSCS website





"Treasury announcement on Icesave

HM Treasury confirmed this morning that if, as expected, Landsbanki is soon declared in default, the Government will make sure that no retail depositor will lose any money as a result of the closure of Icesave.
The Treasury have also confirmed that arrangements are being put in place to ensure that all ISA customers of Icesave will continue to benefit from the tax free status of their accounts.
FSCS is working closely with HM Treasury, the FSA and the Icelandic compensation scheme on arrangements to get people their money back.
Please watch this page for further updates."

lilmismayhem

Ok, so now Kaupthing has collapsed but before that was announced the deposits from Kaupthing Edge (the UK depositors) were transferred to ING Direct. Also deposits from Hertiable owned by Lansbanki (who also own Icesave) were transferred to ING Direct. Why didn't this happen to Icesave deposits too?

Even though the FSCS and Chancellor are saying they are guaranteeing our deposits this is only "IF" Landsbanki are declared in default. They are not declared in default yet and no one seems to be answering the question - how long can they keep our money and do nothing? How long before they have to declare a default or open up our accounts?

If anyone has an answer to this I would appreciate it.

**By the way I am checking an Icelandic news website regularly called https://www.icenews.is. They have recently reported the UK guaranteeing Icesave customers accounts and the current confusion about default and guarantees. At the bottom of the article it says the Iceland PM will clarify the position at a newsconference at 4pm Icelandic time today**

passau91

It might be speaking too soon, but I do feel really relieved. I was going to comment last night that people should try not to have a sleepless night - the only result would be to be tired this morning without achieving anything concrete.

I wonder if there is hope that we will be told that our deposits are going to be taken over by another bank/building society as happened to Northern Rock and B&B...

I am mildly surprised that I feel MORE confidence in our current goverment now than I did yesterday - normally I wouldn't trust a politician as far as you could throw one and you would have thought that such sentiments would only intensify in such turbulent times, perhaps there is some hope for this lot after all...