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

Edinburghlass_2

From the "latest news" sticky in Savings...

How do I get my money back?

There is no finalised procedure set up yet, as there hasn't been a pay out of this scale from the FSCS before. The FSCS has said it will be publishing more information tomorrow (Friday 10th), it's likely it will contact everyone who had savings in Icesave, sending an application form for you to return with your details. All new details will appear here and in the weekly email.

http://forums.moneysavingexpert.com/showthread.html?t=1208883

dazmb

To all those who think we should not be compensated: shame on you. It was most certainly not 'recklessness and greed' that led to investors loosing out at Icesave.

That's a truly mean spirit you have. You are a akin are you not to a certain Mr Scrooge. An ideology he would have been proud of.... You half expect "are there not workhouses for those who have lost all their money in Iceland" to be uttered from their mouths any moment.

To coin a phrase, "there but for the grace of God go I...". Any number of financial institutions could go under, and if we have a 'last man standing wins' attitude to these problems then we will all be poorer both financially and as a community of everyday people just trying to do the right thing and save money.

Like almost everybody else I for one did NOT invest in Icesave by trading my savings' security for high interest rate greed. I invested in what was a slightly higher rate of interest gained due to what was said were the efficiencies that an Internet front-ended bank provides over it's high street equivalents. This has always been touted by such e-banks as Egg, ING and Icesave.

Obviously there have been failures by the FSA, the Icelandic FSA and the credit rating agencies. I checked very often on those ratings even when a few months ago there was alleged attacks by speculators on the Icelandic banks/currency.The credit ratings were never anything other than reassuring.

However, having said all that I do feel lucky to be getting my capital money back. And I would say to all those wanting every last penny in interest and fees/losses etc that perhaps in the spirit of goodwill we should draw a line under our compensation claim by accepting the capital as at bank collapse time and be happy to escape this mess still kicking.

This would allow more money to be available to those less fortunate than us in the offshore operations of these banks who DO stand to lose EVERYTHING.

Like these poor souls who won't get out of this alive sadly as things stand:

http://www.moneysupermarket.com/community/forums/t/landsbanki-guernsey-26064.aspx?PageIndex=1

Just my thoughts a few days on folks. So let's not all fall out over this. In effect we are ALL victims of this unholy mess that THE BANKERS & TRADERS have created, and that the everyday people now end up having to pay for for years to come.

d.edna

dazmb wrote: »

To all those who think we should not be compensated: shame on you. It was most certainly not 'recklessness and greed' that led to investors loosing out at Icesave.

What is it then?

That's a truly mean spirit you have. You are a akin are you not to a certain Mr Scrooge. An ideology he would have been proud of.... You half expect "are there not workhouses for those who have lost all their money in Iceland" to be uttered from their mouths any moment.

I lost sympathy 8 pages ago

To coin a phrase, "there but for the grace of God go I...". Any number of financial institutions could go under, and if we have a 'last man standing wins' attitude to these problems then we will all be poorer both financially and as a community of everyday people just trying to do the right thing and save money.

By what some people did and go offshore to avoid UK tax? then cry to the UK goverment for help (Not saying ICESAVE people did this)

Like almost everybody else I for one did NOT invest in Icesave by trading my savings' security for high interest rate greed. I invested in what was a slightly higher rate of interest gained due to what was said were the efficiencies that an Internet front-ended bank provides over it's high street equivalents. This has always been touted by such e-banks as Egg, ING and Icesave.

Obviously there have been failures by the FSA, [/quote]
Such as?

the Icelandic FSA

Iceland fail at exsisting

and the credit rating agencies. I checked very often on those ratings even when a few months ago there was alleged attacks by speculators on the Icelandic banks/currency.The credit ratings were never anything other than reassuring.

They were meeting repayments so why should the CRA say they aint good for the cash?

However, having said all that I do feel lucky to be getting my capital money back. And I would say to all those wanting every last penny in interest and fees/losses etc that perhaps in the spirit of goodwill we should draw a line under our compensation claim by accepting the capital as at bank collapse time and be happy to escape this mess still kicking.

Agreed DONT CRY FOR INTEREST

This would allow more money to be available to those less fortunate than us in the offshore operations of these banks who DO stand to lose EVERYTHING.

You sir speak sense

Just my thoughts a few days on folks. So let's not all fall out over this. In effect we are ALL victims of this unholy mess that THE BANKERS & TRADERS have created, and that the everyday people now end up having to pay for for years to come.

and the greedy people a few that frequent here

GX1

dazmb wrote: »

To all those who think we should not be compensated: shame on you...

It is not that I think you should not be compensated but that you should not be compensated over and above the amount the UK government committed to via the financial services compensation scheme i.e. £50,000 (the first Euro 20,000 of which ought to be paid from Iceland’s own compensation system). I really feel sorry for people who have lost savings above this amount but lets be clear, the limits of the financial services compensation scheme which were increased from £35,000 to £50,000 just a few hours before Icesave's collapse, were well known.

Over the last few years I chose to invest my money in an e-savings account with a major UK bank. The rate of interest is a little bit less than the top rated accounts on sites like this but that is more than made up for by the fact that the customer service is excellent and (due to its full membership of the Financial Services Compensation Scheme) the fact that I can sleep at night.

Lets face it, an extra 1% interest on savings of £50,000 (the limit for compensation under the FSA scheme and the maximum I would encourage anyone to invest in a UK regulated bank) is worth just £300 per year once tax has been deducted at 40%. Is that really worth risking your life savings for?

In closing, let me say that I hope everyone who has invested in Icesave manages to recover their investment via the UK and Icelandic compensation schemes and that when you do, you think long and hard about where you will invest it next. Please don't blindly chase the highest rate. Think about the security of the bank and the government guarentees backing it, and invest it wisely even if that means giving up that last percentage point of interest.

dazmb

Mr Edna, I like the massive majority of people i'd think (you are in a somewhat overwhelming minority view on these here' threads..) find your views totally inexplicable!

If the FSA regulated Nationwide Building Society collapsed and I had all my money invested in their E-Save account (which I do have some), and which gives a better rate of interest than their others due to it being an internet managed account would I have been being greedy? Would I not deserve compensation?

So, to summise -

Q: What does saving money in an FSA regulated UK taxed savings e-bank with an efficient banking operation that gives a slightly better rate of interest due to not wasting money on posh high street locations or glossy TV ads make you?

A: Greedy and reckless.

Oh yes, of course it does. What silly silly local authorities, businesses, charities and individuals for trying to get a bit of good value for our hard earned ££.

Not aiming this at you specifically Mr Edna (or GX1), but all I can say to those party poopers _party_who wish potential financial ruin on hundreds of thousands of hard working 'ordinary' people and don't like the idea of us being compensated...
Unlucky, screw you! Because we are being :T
And I for one hope that really p*sses these people off!

dazmb

GX1 wrote: »

It is not that I think you should not be compensated but that you should not be compensated over and above the amount the UK government committed to via the financial services compensation scheme i.e. £50,000 (the first Euro 20,000 of which ought to be paid from Iceland’s own compensation system). I really feel sorry for people who have lost savings above this amount but lets be clear, the limits of the financial services compensation scheme which were increased from £35,000 to £50,000 just a few hours before Icesave's collapse were well known.

Over the last few years I chose to invest my money in an e-savings account with a major UK bank. The rate of interest is a little bit less than the top rated accounts on sites like this but that is more than made up for by the fact that the customer service is excellent and (due to its full membership of the Financial Services Compensation Scheme) the fact that I can sleep at night.

Lets face it, an extra 1% interest on savings of £50,000 (the limit for compensation under the FSA scheme and the maximum I would encourage anyone to invest in a UK regulated bank) is worth just £300 per year once tax has been deducted at 40%. Is that really worth risking your life savings for?

In closing, let me say that I hope everyone who has invested in Icesave manages to recover their investment via the UK and Icelandic compensation schemes and that when you do, you think long and hard about where you will invest it next. Please don't blindly chase the highest rate. Think about the security of the bank and the government guarentees backing it, and invest it wisely even if that means giving up that last percentage point in interest.

Agreed, the point you make about above and beyond the pre-agreed ceilings is valid. Spreading your money is advised.

BMJT

"On Working Lunch just now they were discussing the interest issue - you will get back all interest accrued up to the date when icesave defaulted - i.e. this week. This is the case even if you're in a one year bond etc - you will still get interest calculated up to this week."

Thank you for this and damn right they should !! Of course i'm happy to get my money back, but in no way do I think think it's greedy to expect interest. As an operational bank this is the service they provided, they were operational until this week, I'll have my money up until that date please seeing as its calculated daily and technically attributed to my account anyway.

It's as if some of you are implying that the people who chose monthly interest will have that deducted from their claim, and that's just madness. No difference for us annual savers. It's an opportunity cost, that money WOULD be mine if I had saved elsewhere, so it is their liability.

Bank's charge every drop of interest they can on insolvent customers so it's a two way street in my opinion.

Guesthouse

GX1 wrote: »

But why should the tax payer, and investors who have acted responsibly placing their savings with UK banks like HSBC which have much stronger capital adequacy ratios but offer slightly lower rates of interest, pay for the folly of other private investors?

....and that's the Hong Kong Shanghai Banking Corporation HSBC we're on about. The name certainly implies a certain oriental background with no pride in British roots.

Sorry, being a bit cheeky there but I would have picked a better example......like Lloyds, HBOS or RBS...the sort of sound British institution that has a stiff upper lip and doesn't need any help............sorry.....what's that on the news.....?

floppity

I don't understand all the accusations of greed regarding interest rates from people who use this site! It's reason for being is to help ordinary people squeeze as much as they possibly can out of their hard-earned cash. I for one am very grateful for how Martin's information has helped me to do that in a number of ways. I chose to invest in Icesave because of newspaper best-buy tables.

BMJT

But why should the tax payer, and investors who have acted responsibly placing their savings with UK banks like HSBC which have much stronger capital adequacy ratios but offer slightly lower rates of interest, pay for the folly of other private investors?

Is that not what taxpayers are having to do the world over to try and restore some stability? How is there any other way out? The bail out's are an unfortunate but neccessary solution. They shouldn't nigate the rights and hard earned cash of the unfortunate few who are directly affected, afterall we pay taxes too.