Will we see our Icesave cash before Christmas

cwcw

captainkevos wrote: »

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

Less looking and more DOING please, Gordon. Where's our cash?

tr98

nicky_boo wrote: »

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.

I was really hoping the FSCS would simply pay off all the accounts we held, regardless of the maturity dates of fixed-rate accounts.

Otherwise, for those of us having multiple fixed rate accounts, we would have to submit a separate compensation claim form, as each account matures?

Yuk!

dougz_2

nicky_boo wrote: »

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.

That is what the answer on the FSCS website clearly states should happen with fixed term accounts. I don't see it as that complicated to arrange, they could just shift them to another bank, like they did with KE to ING.

dancingdandare

Hello to all

I have not heard anything new about the ICE SAVERS for a while...Does anyone know what is happening now. Do we still need to wait until we get the forms through or should we ring the FCSC up? Seems to be bigger problems in the world at the moment than our lost savings. Even so I would still like to know where they are with the process and when we might have to fill in the infamous claims form....

Also I heard lots of things about interest; I had a easy access monthly interest paid account. Yet I did not get my last months. Are the FCSC really going to pay interest up to the default date at the rate of the icesave account and after that at FSCS approved rate until payment is made? Or have I got it wrong, could someone please verify.

Cheers Dan

Stormy

I too would be interested to learn more about whats going on, this is half the problem with Icesave etc is just the *lack* of information that we are being given, the FSCS website is a complete joke.

AB31

nicky_boo wrote: »

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.

I don't know whether you are still seeking clarification but the position as set out in your second paragraph above is definitely not what I was suggesting. I was merely picking up on the post before mine which referred to FSCS's own written procudures for paying interest on deposit claims, as set out here: http://www.fscs.org.uk/consumer/FAQs/Deposit_claims_FAQs

If you look at Q.8, it says:

"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".

Take as an example a 12 month bond paying, say, 6.5% gross which was opened on 3 October 2008. This statement above is saying that you'll get your money back on 3 October 2009 (the maturity date) including interest at 6.5% applied up to 3 October 2009. The fact that Icesave went bust on 7 October doesn't mean you'll get your money any sooner than 3 October 2009.

Secondly, take a notice account paying 6.0% requiring 3 months notice which was opened on 15 September 2008. If the date of default was 7 October then the FSCS take it that notice was effectively given on 7 October and you'll get your money back on 7 January 2009 with interest applied at 6% up to the latter date.

Third, take an example of an instant access ISA paying 6.15% gross variable interest paid annually on 31 March, and assume the ISA was first deposited on 15 July 2008. Here you'll get interest up to 7 October 2008, and nothing beyond that date, regardless of the actual date of repayment (whether the delay in repayment is 3 or 6 months or whatever).

NB: In the first and second examples, if the FSCS aren't actually ready to pay out the capital + interest sums on the stated dates (eg because of persisting delays beyond their control) then you won't get interest beyond those two dates: 3 October 2009 in the first case, and 7 January 2009 in the second.

All this is based on what is actually written in pre-existing FSCS procedures (as set out above in their Q&A). In actual practice, they could vary the payout procedures in ways that one can only speculate upon. For example, they may decide to pay out all deposits regardless of term/notice period as soon as they can. But if they do so then it could give rise to problems of consistency/fairness in the payment of interest on different types of account post default date. For this reason I think they'll stick to the "rules" as illustrated above.

saxmund

Stormy wrote: »

I too would be interested to learn more about whats going on, this is half the problem with Icesave etc is just the *lack* of information that we are being given, the FSCS website is a complete joke.

I agree; they might not have much to tell us at the moment, but the last update on the website was 11 October. If they can post an update on a Saturday, you would have thought they could manage a daily update, even if it doesn't say very much.

st

cwcw wrote: »

Less looking and more DOING please, Gordon. Where's our cash?

Agree the lack of informatiion is distrurbing after all the enthusiasm from Darling and Brown-who after all are politicians .
can MARTIN not get on to this, for all us ICESAVERS we jsut seem to have being forgoten and in uncertain limboland.

[Deleted User]

we feel the same way. Lots of euphoria at the initial prospect of getting the money back but very disappointed now at the lack of information and lack of projected time scale. This uncertainty is making a lot of savers nervous and I don`t just mean icesaver savers

st

kittie wrote: »

we feel the same way. Lots of euphoria at the initial prospect of getting the money back but very disappointed now at the lack of information and lack of projected time scale. This uncertainty is making a lot of savers nervous and I don`t just mean icesaver savers

again can Martin please get onto this for us all ---the FCSC seem useless when I called them the guy told me he "had no idea or information and to keep checking the web site for updates "
seems to becoming a fiasco!