Kaupthing Edge Advice

Martin_Discredited

Martin,

I think you have acted incredibly irresponsibly in respect of the advice that you give for UK savers. You are surely now completely discredited as any kind of "expert" at saving money.

On your advice I put all my savings into an account with Kaupthing Edge. I did this only one month ago because your site still had Kaupthing as the best savings account with no warning of any instability in the Icelandic banking system. I don't spend a lot of time reading the money section of the newspaper but if I did I believe I would have been able to read about Kaupthing's likely demise back in March. I rely on you to read the business/money section of the newspaper for me and advise me as an expert. You've dropped the ball in a big way on this one.

You were still advising people to open savings accounts with Kaupthing on Monday! Stating that they are protected by the UK FSA up to fifty thousand pounds. You don't mention that if Kaupthing went under with 3 Billion pounds worth of savings to reimburse it would probably take months if not years to get your money back, not to mention countless phone calls and paper work. How could this possibly be worth it for that extra one percent interest?

Perhaps you felt some kind of misguided responsibility to the Icelandic bank and you didn't want to instigate a mass withdrawal of funds from all of the thousands of people who have accounts with them because of you. If this is true then have clearly lost touch with the whole ethos of your site. Your responsibility lies with your readers not a bank or another country.

My money was transferred on Monday when I at last ignored your advice. It is now not in my Kaupthing account or in my bank account and the three day BACS period has passed. So, thanks for the worry, the hassle and the possible loss of my money. I hold you more responsible than the bank and your future advice will need to be checked by all. I think you will have lost a lot of people's trust because of this.

Crabman

Please take note of the following thread:

PLEASE READ : A note on Icesave postings

Martin_Discredited

I don't believe I got personal. Just stating the facts. If you disagree you could explain why?

Former_MSE_Dan

One of the main articles on the site has for the past year advised that, to keep your money safe, do not exceed the FSCS compensation limit of £50k (previously £35k)

I have spoken with the FSCS and APACS this afternoon and both are very confident that all money moved out of Kaupthing and Icesave accounts in the past week, that hasn't appeared in the destination account yet, will be reunited with the account owners. All details on this will be added to the Savings Safety article

pixiep_3

It's really a shame. I feel for Martin, this must be a stressful time. But, like "Martin Discredited" (what a terrible name for a money saver!!) I also put a HUGE chunk of my savings with Kaupthing Edge on, what I felt, was a recommendation from Martin. I feel (and others may disagree!) that saying "all UK banks are backed up to £50,000" is not enough information. I also didn't look into the existing instability with Kaupthing Edge as I, and you may think foolishly, trusted Martin's "recommendation".

The thing is, the £50,000 guarantee is now effectively worthless. Again, perhaps I am understanding this incorrectly, but the government has allowed Kaupthing Edge deposits to be taken over by ING Direct, which is a Dutch bank. So, this is now no longer covered by the £50,000 UK government guarantee. It is, however, covered by the Dutch government up to £78,000 (i.e 100,000 euro) but now there's the possibility of having to deal with the Dutch government, whereas yesterday we were covered in our own country. Scary stuff.

I remain optimistic that we'll get our money back at some point. But, if it takes months for this to happen, it certainly isn't the worth the extra few pounds of interest.

I remain a Martin FAN and I'd like to offer my moral support during this difficult time. However, perhaps you'd like to offer some links in future so your readers can check into any financial instability of any bank before they invest? I know I'm repeating what's already been said, but an advantageous interest rate means nothing if you end up needing to go through a long and complicated process to get your money back through the (British or Dutch!!!!) government.

jingle68

On your advice I put all my savings into an account with Kaupthing Edge

i dont agree with that bit. I have 30k in KE, put there after reading various comparison sites/ newspaper reviews.This website is one of many sources that i used to make my decision to use KE because KE was a 'Top Rated' savings bank.Martin didnt advise me.
I read the T&C,looked at the protection & was confident that my savings were protected.
Martin cannot be held responsible for the underhand/illegal actions of the bosses at KE. If is wasnt for the intervention of the FSA & our government seizing KE UK assets yesterday morning, a lot more of us would be in the same situation as ICESAVE depositors.
My view is still the same, my savings are still protected & still earning good interest(now with ING).

My money was transferred on Monday when I at last ignored your advice. It is now not in my Kaupthing account or in my bank account

so you ignored Martin's 'advice', now you cant trace your savings. How is that Martin's fault?

foreverbrassic

'My view is still the same, my savings are still protected & still earning good interest(now with ING).'

so are mine ...... i hope!

Thinker

I defended Martin earlier in the week. My view has not broadly changed. However, once KE went down things became very personal for me. Upon reflection I see that the Martin was correct in all the advice and information he gave - there is no doubt. However, on KE he missed a legal eventuallity Yes, your money is FSCS guateeed BUT if the bank were to sell or transfer assets this would become worthless if that insitution lies outside the UK. I was convinced that the FSCS guarentee would be honoured despite the move to ING - I was wrong and this is a legal matter. My advice to Martin, with respect, would be to have the 'what ifs' checked out by a coporate lawer before despensing your advice. Not enough homework done on this occasion by Martin I'm affraid. Plenty done by me but to no avail. Good luck all

Nala

To be fair any bank could have been sold to ING, surely? Santander own a few now don't they? What about if the Government had made a deal with ING to take over Bradford and Bingley? Would that have been Martin's fault too?

I have savings with both Icesave and KE (oh they saw me coming lol) I didn't have any advice from a financial advisor. I made my decisions based on the interest rates offered. I naively, yes I admit it, just went for the rates, call it greed or whatever. I was just trying to get the best out of my savings.

The rates for these accounts were published on MSE and in newspapers - no-one told me I HAD to open accounts with these institutions. I'd read the details relating to the compensation and was happy that I was covered/insured. Who knew that the Icelandic government would go back on their guarantee? If the t&c's had said the 1st so many euros will be forfeited for UK savers, of course I wouldn't have opened an account.

I'm waffling now so going off for a wander

polus_

I put money in Kaupthing Edge because it was a highly rated UK based bank and backed by the FSA!

If it wasnt for Martin I wouldn't have known not to put more then 35000 in, which I havent.

Im worried that now they have changed the T and C and being a fixed account I will probably loose my interest, and now the account is not fully backed by the FSA but why dont you, like me accept that it was your decision.

blondieleopard

will someone be prosecuting the directors at K/E and icesave for trading whilst insolvent...?????????????

and just have to say...cannot believe the cheek of the Iceland PM who expressed umbrage at our govt for seizing lansdbanki assets...using terrorist legislation..what a nerve....!!!

I must say....Gordon and alistair have gone up in my estimation for such daring do...did not think either had it in them....
and the UK govt should seize ALL other iceland assets in this country until this thieving country pays back the half billion quid to the councils....charities etc....
maybe the IMF will bail out liddle ol iceland who has got fat on uk money.....

and I feel sorry for IOM and Guernsey who not protected by compensation scheme... and sad stories coming out from there...

and that twit iceland professor on ch4 tonite saying that iceland is honouring its obligations....where has he been this last 72 hours ?????