Last year I put 200k under my matress and my mate put 200k in Icesave.....

StevieJ

egduj wrote: »

Apparently all interest earned up until Icesave became insolvent will be paid in full. (Working Lunch this afternnon)

I know I am just trying to wind him up, ironically I only have interest in there I moved the rest a couple of weeks ago.

genny

egduj wrote: »

Apparently all interest earned up until Icesave became insolvent will be paid in full. (Working Lunch this afternnon)

Will that also be the case for fixed term deposits, or just instant access Icesave accounts?

drsue_2

All accounts

danny69

genny wrote: »

Will that also be the case for fixed term deposits, or just instant access Icesave accounts?

I would think fixed term deposits would be the same.

StevieJ

danny69 wrote: »

I am annoyed that every single taxpayer in the UK should have to suffer due to a bad decision made my savers to deposit money into a foreign bank. There are no UK branches, and many people on here already had the opinion that these banks werent worth using, even though they offered good interest rates, the investment was always risky.

Hey Danny, this was an email I received from The Motley Fool earlier in the year, it infers that if Iceland defaulted then our Govt would cough up i.e. the govt will pay up less anything you receive from Iceland. It also mentions your mattress theory. Maybe we should sue the MF

Quote:
Originally Posted by StevieJ
I asked because I received the following paragraph within an email from the Motley Fool that appeared categoric.

[FONT=verdana,arial,helvetica,sans-serif]The Financial Compensation Net[/FONT][FONT=verdana,arial,helvetica,sans-serif]If you are worried about safety, the Financial Services Compensation Scheme (FSCS) is designed to safeguard your money. If your bank were to go bust, the first £35,000 of your savings per UK financial institution would be protected in full.[/FONT][FONT=verdana,arial,helvetica,sans-serif]In respect to Icelandic accounts, Kaupthing Edge deposits are currently held by UK company Kaupthing Singer and Friedlander Ltd, and qualify for the maximum protection of £35,000 under the scheme. This is the same for FBN and ICICI bank.[/FONT][FONT=verdana,arial,helvetica,sans-serif]Money held in the Icesave savings (currently paying 6.05% on balances from £1) falls under slightly different rules, as the account is initially covered under the Icelandic Deposit Guarantees and Investor-Compensation scheme. This means that the first €20,887 (currently £16,398) is protected in full by Iceland's regulator.[/FONT][FONT=verdana,arial,helvetica,sans-serif]However, savers also have a further guarantee under the FSCS, which offers 100% of the first £35,000, minus any payments made under the Icelandic scheme. [/FONT][FONT=verdana,arial,helvetica,sans-serif]Either way, these accounts have exactly the same protection as UK deposits.[/FONT][FONT=verdana,arial,helvetica,sans-serif]Take advantage of the fact that because of the credit crunch, banks are eager to get their mitts on your cash at the moment. And as long as you stay under the £35,000 compensation limit, your savings will be fully protected.[/FONT][FONT=verdana,arial,helvetica,sans-serif]And finally, don't be put off by the gloomy headlines about the credit crunch. After all, your money won't earn any interest if it's hidden under your mattress.[/FONT]

Avalanche99

I hope noone raising arguments about the taxpayer now having to foot the bill for other people's "risk taking" never leave the house, as they would be taking the risk of being run over by a car, thus necessitating medical treatment on the NHS, paid for by the taxpayer. Likewise, I hope they are all non-smokers, non-drinkers, in short, never indulge in any activity carrying even a slight risk, as I wouldn't want them to become a burden on the rest of us.

StevieJ

To be fair I think smokers and drinkers have more than paid their way with taxes over the years.

danny69

3 years ago, Icelandic banks had trouble raising capital due to nobody wanting to lend to them because they saw them as risky investments. What they did was offer good interest rates to UK savers, and many have been taken in hook, line, and sinker.

StevieJ

danny69 wrote: »

3 years ago, Icelandic banks had trouble raising capital due to nobody wanting to lend to them because they saw them as risky investments. What they did was offer good interest rates to UK savers, and many have been taken in hook, line, and sinker.

Nice one, Iceland - Fisherman - Hook line and sinker.
I am not with this, Icesavers received high interest and will receive full compensation, what is the problem?

dkmax_2

Avalanche99 wrote: »

I hope noone raising arguments about the taxpayer now having to foot the bill for other people's "risk taking" never leave the house, as they would be taking the risk of being run over by a car, thus necessitating medical treatment on the NHS, paid for by the taxpayer. Likewise, I hope they are all non-smokers, non-drinkers, in short, never indulge in any activity carrying even a slight risk, as I wouldn't want them to become a burden on the rest of us.

A more suitable analogy is with insurance - as the compensation scheme is - high risk people normally pay higher premiums. Those people seeking higher returns from these risky Iceland banks should have been paying more into the scheme.

Is it fair that their unsustainable interest payments have to be covered by the tax-payer too? Good job they weren't offering 50% APR.