ICESAVE now "formally" in default

Reaper

Unknown but unlikely. From my FAQ:

Q4: What about interest? Is that protected too?
A: Most accounts calculate interest on a daily basis even if it is only added monthly/yearly. My understanding is these will pay up to the date of collapse and that was confirmed here. However you are not likely to be paid anything for the time between the collapse and receiving the compensation.
But post 12 below says no interest may be paid, wheras here it was rumoured some interest will be paid even after they have gone bust! I will update this when the answer is known for sure.
Note that the capital plus interest total is only guaranteed up to the £50,000 limit.

PS Don't worry about the £50,000 limit mentioned. This was a generic answer - the limit with Icesave has been waived.

Seajays

LGG wrote: »

someone who talked to the fscs said they will get intrest after the bank froze at a standard fscs set rate of around 3.5 %

I wonder if that came from this FAQ on the FSCS site. Note that this is the investments FAQ, and not the Deposits one (which does not mention interest).

8. FSCS has added a 'Rate of Return' to the loss for which it is paying compensation. Why is this added and how is it calculated?

If you lost your money because of, for example, unsuitable advice given by a firm, or theft, you will also probably have lost the opportunity to receive interest or some other return on that money. To reflect this loss, as part of the compensation we pay, FSCS adds a rate of return to the money you lost. We calculate this by reference to the interest you may have received if your money had been in a risk-less alternative, such as a bank or building society account.

The FSCS rate of return is one month sterling LIBOR (London InterBank Rate) minus 2%, minus income tax. LIBOR is a "standard" rate that is widely used and easily verifiable. We reduce this rate by 2% to reflect the interest rate that an "average" savings account might pay. We take off income tax because most consumers pay income tax on savings accounts.

We review the rate of return periodically.

http://www.fscs.org.uk/consumer/FAQs/Investment_claims_FAQs/