Will we see our Icesave cash before Christmas

rboysdad

Where did you hear this? If so, I won't get my savings back for 2 and a quarter years and lose a huge amount of interest - doesn't sound kosher to me!

rboysdad

Thanks meunier. Sounds logical to me. I can't see the fscs wanting to penalise people for locking their money up (at lower rates in my case over a longer period) just for fun. I am certainly seeing moneybox live in a different light since Sunday!

cwcw The message that reimbursement will be fast tracked has come out in several different places, so let's hope it won't take forever. It is part of the compensation scheme though that these things won't necessarily be as quick as one would like. Drat!

st

I am a little fed up at the lack of information relating to the refund of our savings -mine was 10500 and 1500 isa especially when a week ago Darling announced all savers would be refunded -OK like everyone else i read the news and the forum but it jsut seems to have gone very quiet -called the FCSC and guy there told me andf quote " sorry i have no information please check our web site for updates" !

seems to be the political scoring and "brownie points" was a nice plus for the goverment last week .

Gambit

Agreed, there does seem to be a lack of information at present. I am just hoping that they are working hard behind the scenes and will release more details this Friday as they have promised... fingers crossed!!

Ratatosk

rboysdad wrote: »

Where did you hear this? If so, I won't get my savings back for 2 and a quarter years and lose a huge amount of interest - doesn't sound kosher to me!

This may be the link, which suggests that interest would be paid. However it may be the case, as has been mentioned by another poster, that the collapse of the bank means that all the T&Cs are null and void and the money may be paid back along with everybody elses.

http://www.fool.co.uk/news/your-money/savings/2008/10/03/is-it-safe-to-lock-your-savings-away.aspx

Quote:
"In relation to fixed rate bonds, if the bank in question goes bust, the FSCS will effectively take over your bond for the remaining term. If no access to your money is permitted at any time before maturity, you will need to wait to the end of the term before you can make a claim under the FSCS for compensation. You will then be entitled to claim for the capital deposited in your bond plus the interest you would have earned over the term up to the new maximum of £50,000."

captainkevos

BREAKING NEWS ON SKY . Gordon Brown says FSA looking at proposals to increase the £50,000 guarantee ....

cos69

Ratatosk wrote: »

This may be the link, which suggests that interest would be paid. However it may be the case, as has been mentioned by another poster, that the collapse of the bank means that all the T&Cs are null and void and the money may be paid back along with everybody elses.

http://www.fool.co.uk/news/your-money/savings/2008/10/03/is-it-safe-to-lock-your-savings-away.aspx

Quote:
"In relation to fixed rate bonds, if the bank in question goes bust, the FSCS will effectively take over your bond for the remaining term. If no access to your money is permitted at any time before maturity, you will need to wait to the end of the term before you can make a claim under the FSCS for compensation. You will then be entitled to claim for the capital deposited in your bond plus the interest you would have earned over the term up to the new maximum of £50,000."

Thanks for posting that, although in order to avoid confusion I prefer to get my information direct from the FSA. They say pretty much the same as you quote above from the fool

"8. Will you compensate me for any interest I have earned on my account? Interest owed to the depositor as at the date the bank is declared "in default" by FSCS will be paid as part of the compensation amount. Notice accounts will be paid as if notice had been served on the day the account was frozen and payment will be made, including interest, at the end of the notice period. Fixed term accounts will be paid at the maturity date with the interest that would have been paid by the bank at maturity date."
http://www.fscs.org.uk/consumer/FAQs/Deposit_claims_FAQs/

The Icesave fixed term bonds however were paying a much higher rate of interest than the government would normally borrow its money for (eg National Savings) so cannot believe they will let the bonds run to maturity. That FSA statement however is quite clear

AB31

cos69 wrote: »

Thanks for posting that, although in order to avoid confusion I prefer to get my information direct from the FSA. They say pretty much the same as you quote above from the fool

"8. Will you compensate me for any interest I have earned on my account? Interest owed to the depositor as at the date the bank is declared "in default" by FSCS will be paid as part of the compensation amount. Notice accounts will be paid as if notice had been served on the day the account was frozen and payment will be made, including interest, at the end of the notice period. Fixed term accounts will be paid at the maturity date with the interest that would have been paid by the bank at maturity date."
http://www.fscs.org.uk/consumer/FAQs/Deposit_claims_FAQs/

The Icesave fixed term bonds however were paying a much higher rate of interest than the government would normally borrow its money for (eg National Savings) so cannot believe they will let the bonds run to maturity. That FSA statement however is quite clear

Yes, from this it's is clear that interest will be paid on those accounts which involve a notice period, or have a fixed term, from the date of default until the maturity date. Provided the FSCS is ready to pay out these deposits within those timescales, those people shouldn't lose out at all. The people who appear set to lose are those with instant access accounts who won't get interest after the date of default, according to a strict interpretation and from what FSCS staff have actually said. However, it's arguable that non-payment of interest in the latter situation is inconsistent with the Chancellor's promise that " .. no retail depositor would lose any money as a result of the closure of Icesave".

nicky_boo

AB31, I find your interpretation rather optimistic. I hope you are right. However, reading Martin's weekly e-mail today, I thought fixed rate savings customers will either lose all interest if their term is not complete or get interrest only until Icesave's default date.

I need to check if my understanding of your interpretation is right:
Let's say that someone had opened a 1 year fixed rate saving account with Icesave at the begining of October, are you saying that when we manage to get our money back, let's assume before Christmas, this person will get his/her capital + 1 year worth of interest although their money would have been tied up for only 2-3 months? So, then, these people will be making money out of this crisis. Or alternatively, can we interpret what FSCS says in the following way: FSCS or I don't know who, will hold the money until the maturity date and then you get the money+interest. This seems complicated to manage though.

I am looking forward to getting some clarification on his subject. I feel it is highly lkely that us fixed rate saving customers will lose the interest. I hope I am wrong.

nicky_boo

Apologies... I read Martin's e-mail again. It sounds like we will get some interest even if it is only accrued. So, we are only losing out for this period of waiting for compensation. I hope it will not take 6 months like some web sites predict.

By the way, like myself, if you are one of the people who are confused about where all the money has gone, the following article is really useful:

http://news.bbc.co.uk/1/hi/magazine/7670313.stm