Kaupthing in Administration

nzseries1

jamieslucky7 wrote: »

I have a fixed term account maturing next august? Can I wave goodbye to this interest if KE go under?

Accrued interest is protected up to the date of collapse by the FSCS, but not from the date of collapse to the date of reimbursement.

Gwhiz

jamieslucky7 wrote: »

I have a fixed term account maturing next august? Can I wave goodbye to this interest if KE go under?

I do too. I suspect that ING will have to honour the fixed rate but possibly at a different interest rate but as the savings business has been bought outright I would have thought interest was safe!

soolad

everyone seem to be asking questions and no one giving answer ? I think we need some expert in here

Gwhiz

nzseries1 wrote: »

Accrued interest is protected up to the date of collapse by the FSCS, but not from the date of collapse to the date of reimbursement.

So you need to get lost interest from FSCS? How do you find out what interest acrued if it's paid annually and therefore does not show on your account?

456cat

I've managed to speak to a customer advisor but he doesn't have any more information than we have at the moment. He said that there are rumours about ING going around the office, but there has been nothing official yet. I asked about withdrawals and he said that as far as he knows we can still withdraw and accounts are not frozen.

nzseries1

Gwhiz wrote: »

So you need to get lost interest from FSCS? How do you find out what interest acrued if it's paid annually and therefore does not show on your account?

Well, we don't know for sure, because it's unprecedented. But, to work out the interest, you'd need to know what your balance was every day since your last interest payment, then you'd need to use certain mathematical formulas which I'm not going to post here to determine your interest. I hope you've got your entire KE statement printed out!

Andrew64

Here's the latest:-

http://www.timesonline.co.uk/tol/money/savings/article4907115.ece

Rescue plan for Kaupthing savers

"ING Direct UK is a subsidiary of Netherlands-based ING Group. Following the transfer, savings of up to EUR100,000 (£78,000 of deposits) held with Kaupthing or Heritable will be protected by the Dutch government.

ING operates under the passport system of financial compensation, which requires UK savers to seek compensation from a foreign country first in the event of a banking collapse. If there is a shortfall between the payment from the overseas scheme and the £50,000 guaranteed by the UK government, savers receive the difference from the Financial Services Compensation Scheme.

As the level of compensation offered by the Netherlands is higher than in the UK, in ING's case the entire amount would have to be sought from the Dutch government."

Rafter

I imagine your existing account, any interest etc will transfer to ING who will get in touch with you about whether you will be offered the same rate, terms and conditions as before.

The main thing is to be reassured that you will be able to access your money with perhaps only a small delay, whereas Icesave customers may have to make an FSCS claim and wait a while (without interest) for their money.

R.

northern5

So ... here we are again a day later! I've just left the Icesave thread and have now hopped on here to hear the latest regarding KE!

At least this time we know we are protected, but I'm sure I'm not the only one who puts cash into these accounts and pulls the cash in and out as needed. If KE stop money being taken out now then I'm going to run into problems very soon!

Sadly for KE, I started a BACS transfer of my funds yesterday. Again, not because I'm worried about loosing it, but because I can't wait months for the FSCS to cough up should there be a problem.

Personally I'm glad that we have this forum to talk about this and share the news articles.... without this I would feel very isolated and in the dark!

XXXX

gris wrote: »

Administration is a very different kettle of fish and was never mentioned.

Really?

http://news.bbc.co.uk/2/hi/business/7658725.stm
'The Treasury, Bank of England and Financial Services Authority have taken their action to protect the UK customers of Kaupthing Edge by putting into administration its UK banking group, Kaupthing Singer & Friedlander (KSF), which holds the deposits of Kaupthing Edge's UK customers. '

Since now KE has been taken over by ING, no compensation is necessary. The variable rate offer maybe inevitably lowered assuming your fixed rate will not be changed before the end of your term?