Icesave---Instant Access Compared to Fixed Term

polyphonic99

Update from the BBC's Moneybox program 18th October.
MoneyBox presenter Paul Lewis interviewing fellow MB journalist Bob Howard
“Well Paul the good news for people with fixed term bonds is that they will get the interest paid up until the date they mature, but the bad news is, that as things stand, people who rely on monthly interest payments as income, won’t get this interest now until the bond matures. So if you recently took out a 3 year bond that could be in 3 years time and for people with ordinary savings accounts, interest stopped being payable from the 8th of this month, when Icesave was declared in default.”
http://news.bbc.co.uk/1/hi/programmes/moneybox/

The piece is about 12 minutes into the program
It would have been more reassuring if Paul Lewis had been interviewing someone directly from the FSCS, but one assumes Bob Howard was quoting what the FSCS had told him.

dougz_2

Well that would be in accordance with the FAQ previously discovered on FSCS website (see other icesave threads for the link).

meatandtwoveg

So if you have a fixed term bond account, not maturing for say 12 months, but you opted to recieve your interest monthly, now instead, are you saying you will recieve your whole stash back in full, along with all interest owed at the end of the term?

Is this in writing, just means you will have to borrow the earned not paid monthly interest for one year, then when you get the interest, you pay the loan back?