Icesave - 11 Days Later & We Are No Wiser

Paul_Herring

meunier wrote: »

I have just spoken with 'Angela' at the FSCS who told me that they have NEW information today and that they are instructed to say that any FIXED TERM Icesave account would be honoured with interest at the MATURITY of the term with the interest owed.

Did 'Angela' explicitly say that this applies to both monthly interest (as well as on-maturity interest, people who aren't too affected by this?)

If so, it does sorta look like the FSCS are making Mr Darling to be a liar when he said no-one would be 'losing out.'

meunier

Did 'Angela' explicitly say that this applies to both monthly interest (as well as on-maturity interest, people who aren't too affected by this?)


Yes, as I understand it, Angela did quite clearly state this. Indeed, I repeated what she said back to her - just so there was no misunderstanding - and she said that it was correct.

bryanb

If Angela is correct it will increase their (FSCS) administration load greatly. I have 4 accounts, 3 maturing at different dates and one instant. My wife has similar.Therefore 8 different claims from one household.

AB31

meunier wrote: »

I have just spoken with 'Angela' at the FSCS who told me that they have NEW information today and that they are instructed to say that any FIXED TERM Icesave account would be honoured with interest at the MATURITY of the term with the interest owed.

This is not really new information. It's been reported and discussed in numerous posts on this Forum over the past week. See Q8: http://www.fscs.org.uk/consumer/FAQs/Deposit_claims_FAQs/ , which sets out the position on interest.

It's simply that FSCS have at last got round to acknowledging this feature of compensation system in the present situation, and briefing temps like Angela on what to say to people with fixed term accounts. The problem is that people with instant access accounts will not qualify for interest unless there is some change in the existing rules. It's news on this matter that would be interesting.

Paul_Herring

bryanb wrote: »

If Angela is correct it will increase their (FSCS) administration load greatly. I have 4 accounts, 3 maturing at different dates and one instant. My wife has similar.Therefore 8 different claims from one household.

Hah.

I have 11 accounts. One instant, one ISA, and 9 year bonds, maturing once per month from January to September.

I await with interest (pun intended) to see how exactly they're going to manage this.

altocumulus

I just WISH they'd get on with it at the same level of urgency that they are pumping money into the banks themselves.....

bryanb

It's possible that without the income from my icesave accounts I would qualify for Pension credit. Anyone got any ideas regarding whether deposits I am unable to access should be declared for this purpose?

AB31

sloughflint wrote: »

I suppose this is the part:
I know all we can do is speculate but I can interpret it differently depending how I read this.

If I concentrate on the red part, the part in green could be interpreted as as just saying when the interest will be paid, not how much the interest will be ie interest amount could still be just up to date bank declared in default.

No, I don't read it that way. It's very clear to me that interest is included up to maturity on fixed term accounts. There's no way that the FSCS would have suddenly made this concession.

London05

Paul_Herring wrote: »

1) Not all the savings are taxable. You want your cash ISA paid into your current account?
2) Your linked account is with an institution not covered by FSCS you say...?

There are sufficient numbers of people affected by both or at least one of the above to say no to 'just dump it into the linked account.'

Don't have an Isa in Icesave have fixed rate savings 6 & 12 months so yes I do want it back in my current account. :j

mystic_trev

Hard-up savers who deposited money with Icesave will not be able to bank on having their money back before Christmas.

This is despite European Union rules which state any European compensation scheme must forward savers' money to them within three months of a bank going into default.

http://www.thisismoney.co.uk/saving-and-banking/article.html?in_article_id=455849&in_page_id=7&ct=5