Passport Scheme - Banks to Avoid - Includes ING

MRLX69

Since ING has bought the deposit accounts from Kaupthing Edge, does that mean my savings in Kaupthing will now operate via the passport scheme?

TehJumpingJawa

I think the most positive thing that should come out of the mess with Icesave is the abolition of the passport scheme.

Former_MSE_Dan

Hi MRLX69

Yes. The Dutch scheme guarantees up to 100,000 euros, so you would have that level of cover. So in the event of it going bust you'd have to claim from the Dutch scheme

Dan

South_Bound

I really really really really want to trust the system and leave my KE money with ING, but there is just such a big part of me that is saying that the Passport scheme is flawed and not to be trusted. I nearly shut my bond yesterday, but stopped myself. Am going through the same motions again.

Presumably the significant change in the protection from FSCS to passport is a change of T&Cs and I can just walk from the bond with no issues. Will let you know if I ever make my mind up.

notarf

I'm an Icesave customer and was aware of the EEA 'Passport' scheme.
Fortunately in this case Icesavers are going to be fully compensated.

But something I don't understand about the 'Passport' scheme (still very relevant because ING etc are in it) is how it would be applied to a joint account.

For example if we have a total of 34k in a joint account, is it the case that the first 16.5k is covered by the 'passport' and the rest by the FSCS - or could it be the nightmare scenario that because the account is 'joint' the passport element would be per person (ie 16.5k each) ? In other words the FSCS would only be expected to pay out £1000 after the first £33000 (2 x 16.5k) was 'covered' by the passport scheme !!!
This would be a major disadvantage of having a joint account in an EEA passport scheme - surely not.
Could someone clarify this ?

My_head_hurts

Why does the FSA think that the right action to take, when UK registered banks are in trouble, is to transfer the deposits in those banks to foreign-owned banks (i.e. ING and Santander).
Is it because they were the only ones interested?
And how come the process is virtually instantaneous for some (B&B, KE) yet can drag on for months for others (HBOS, building societies)?

echelon101

Babycakes wrote: »

The passport scheme needs to be shut down now and replaced with full FSCS protection. No protection - no right to set up a bank in the UK.

Sod off Iceland - we dont want your sort here. Thieving baskets

I would go further and suggest that there needs to be a unitary banking protection scheme in Europe, to prevent Icesave 2.0, backed up by a sustainable international banking code.

Count_Dante

Just want to add that ING are an excellent credit risk, better than most UK banks. This was not the case with the Icelanding banks, which were dreadful risks.

Debt_Free_Chick

Count_Dante wrote: »

Just want to add that ING are an excellent credit risk, better than most UK banks. This was not the case with the Icelanding banks, which were dreadful risks.

Just curious ..... how are you measuring "risk"?