Icesave---Instant Access Compared to Fixed Term

daveoc22

Apologies for starting yet another thread but I don't think this has been mentioned, if it has please close this thread.

I'm in a 2 year fixed account with Icesave and I'm wondering if these accounts will be treated the same as instant access when it comes to paying back.

After all, I wasn't expecting to see my money for around 15 months more,which is very different to those people with an instant access account.

Is it possible that in the negotiations at present going on between the UK and Iceland it might be agreed that fixed term customers will get their money back but only on their maturity date?

noh

daveoc22 wrote: »

Apologies for starting yet another thread but I don't think this has been mentioned, if it has please close this thread.

I'm in a 2 year fixed account with Icesave and I'm wondering if these accounts will be treated the same as instant access when it comes to paying back.

After all, I wasn't expecting to see my money for around 15 months more,which is very different to those people with an instant access account.

Is it possible that in the negotiations at present going on between the UK and Iceland it might be agreed that fixed term customers will get their money back but only on their maturity date?

It's possible they may deal with the fixed term accounts that way. We will just have to wait and see.

Nigel

meunier

Surely they will want to disengage this matter have have the money returned to UK banks? Or am I just a fool. If this is the case, then would they not have to honour the interest - and see that those on monthly interest payouts were paid in a timely fashion. I cannot conceive they would want to get involved in such adiministrative difficulties given all the vast 'other' myriad of details that they currently face.

Or am I wrong?

Perhaps, as is often mooted, misery simply LOVES company.

KathysBoy

Unless they amend the rules you will normally have to wait until maturity. This is covered in the FSA Handbook, which contains the rules under which the FSCS operate. The handbbok is here

http://fsahandbook.info/FSA/html/handbook/


and the rule about fixed deposits says

"
COMP 12.3.1 For a protected deposit claim, the quantification date is the date the relevant person is determined to be in default, or the date the protected deposit was due and payable, if later.

Swipe

So much for getting my money back for another 12 months then. I just hope there's still some left by the time mine matures

del1001

KathysBoy wrote: »

Unless they amend the rules you will normally have to wait until maturity. This is covered in the FSA Handbook, which contains the rules under which the FSCS operate. The handbbok is here

http://fsahandbook.info/FSA/html/handbook/


and the rule about fixed deposits says

"
COMP 12.3.1 For a protected deposit claim, the quantification date is the date the relevant person is determined to be in default, or the date the protected deposit was due and payable, if later.

Let's hope they amend the rules then, one of my accounts is for 2 years, I really don't fancy waitng that long, seemed like a good idea at the time..

As a footnote, would they still continue to pay the agreed rate of interest for the whole term?

ed123_2

...if they follow this rule people will be paid the accrued interest to 8/10/08 (per FSCS spokesperson) and then receive nil interest for up to 2 years? This would seem to be an administration nightmare and go against Darlings statement that depositors would not lose anything re their accounts. (not strictly accruarate as they will lose approx. three months interst re compensation processing). He has overridden the £50k limit rule so one assumes he can overrule other FSCS/FSA rules????

LGG_2

ppl who contacted the fscs were told that after 8/10/08 they would still get intrest but at a fixed fscs rate of around 3.5-4%.

maybe try and contact them to get an direct answer for yourself

polyphonic99

Originally Posted by KathysBoy
Unless they amend the rules you will normally have to wait until maturity. This is covered in the FSA Handbook, which contains the rules under which the FSCS operate. The handbbok is here

http://fsahandbook.info/FSA/html/handbook/


and the rule about fixed deposits says

"
COMP 12.3.1 For a protected deposit claim, the quantification date is the date the relevant person is determined to be in default, or the date the protected deposit was due and payable, if later.
Let's hope they amend the rules then, one of my accounts is for 2 years, I really don't fancy waitng that long, seemed like a good idea at the time..

As a footnote, would they still continue to pay the agreed rate of interest for the whole term?

Thanks for this post. I am in the same situation, £30K in a 2 year fixed term account, with 15 months to run, taken out BEFORE any problems about the Icelandic economy came to light and when Icesave was the new darling of the media after ING had droped its rates. I had a quick look at the handbook. It now looks like you should have consulted a solicitor before opening a fixed term savings account in my view. I couldn't make head nor tail of it. I have never seen anything in the media warning savers that there was this risk. Why not? The only warnings they ever made was that it was OK if you were prepared to tie up your money for the specified period. I had no problem with that, but that was with the understanding I would earn interest for the whole term. Who will be earning interest on my deposit from now until its maturity date. Its very depressing: my income will now be reduced by about 25% for the next 15 months. I don't know how I will pay my bills.

So much for Labour ministers declaration that no one has lost a penny.

Countrybumpkin

I have just rung the FSCS and the person I spoke to said that you won't have to wait until the end of the term of the bond to get your refund. She also said that the FSCS will be paying the first £50,000 with any remainder being paid by the Treasury. She said that forms will be going out in a week or two. I hope she has got her facts straight!

frames1_uk

Thanks for that Countrybumpkin. Here's hoping it's not long!