Icesave compensation payouts... how to keep the pressure up

meunier

Just a clarification - I can understand on an Icesave fixed term product if NO interest was paid on the return of the capital AFTER the collapse of the bank (8th October 2008), (indeed I feel this to be only fair), however, as I understand it, interest should and will be paid up to the fall of the bank on the aforementioned date.

Am I correct in this understanding do you think?

meanmachine_2

bsimmons wrote: »

This stuff called money is very emotive!! Perhaps we should rename this thread Handbags At Dawn.

I'd use my handbag, but there ain't any money in it!!!!

I think many of us get so angry and suspicious because we've been lied to - mainly by the Icelandic people (bankers and politicians), to be fair - and it's hard to trust anyone right now.

Likewise, Brown's pledge of "no more boom and bust". Another lie which too many people believed and which we're all going to have to pay for now.

soulsaver

meunier wrote: »

Just a clarification - I can understand on an Icesave fixed term product if NO interest was paid on the return of the capital AFTER the collapse of the bank (8th October 2008), (indeed I feel this to be only fair), however, as I understand it, interest should and will be paid up to the fall of the bank on the aforementioned date.

Am I correct in this understanding do you think?

It does say somewhere plus accrued interest, so I assume it will. I prefernot to speculate and am happy to wait & see what the FSCS say. I'll want to know who is holding the bond but if it were Northern Rock or other gov body and offering to maintain interest rate I'd be over the moon. Think about: 100% guarantee at c.7% while BOE interest rate maybe at 3.5%.... I'd put more in if they'd let me!

Rep_2

Scooby64 wrote: »

Not sure if we're talking at cross purposes, because AER effectively removes any variation due to payment frequency http://moneyterms.co.uk/aer/ so the account with the highest AER has the best reyurn even if it doesn't credit the interest daily

We weren't talking at cross purposes before and your latest comment concerning the purpose of AER for comparative purposes is correct, although I wasn't specifically thinking of AER implications at the time!

Your previous comment ("Banks accrue the interest daily and calculate the next days interest on the "compounded" balance") is, however, incorrect as I was endeavouring to point out. Interest is only accrued on cleared balances - no account is taken of interest which has not yet been credited to the account. Once it has been physically credited to the account and could be shown on a statement it becomes a factor in the AER, but not before. Hence my original point about the benefit that we will gain by receiving our interest "early" which will mitigate the loss of interest in the period between the demise of Icesave and regaining control of our money (as long as the money is re-invested, of course!)

M00NST0NE

Rep wrote: »

Interest is only accrued on cleared balances - no account is taken of interest which has not yet been credited to the account. Once it has been physically credited to the account and could be shown on a statement it becomes a factor in the AER, but not before.

So will someone who opted to have interest credited anually not get any interest at all if the account is less than a year old?

Rep_2

M00NST0NE wrote: »

So will someone who opted to have interest credited anually not get any interest at all if the account is less than a year old?

In normal circumstances your interest would only be credited on the first anniversary, but since these are far from normal circumstances you will get your interest paid up to the date of default. The original comment was on the technicalities of compound interest - it wasn't meant to add to your worry! Sorry!

Paul_Herring

whiterabbit3 wrote: »

I think the voice that has been missing from this discussion is that of the person who doesn't just have their savings tied up in this fiasco, but who draws a monthly amount on which to live.

I don't. I've seen quite a few posts by people who were relying on monthly interest payments wondering !!!!!! they were supposed to rely on now.

And it was either Fool or Money Box that brought up the case of someone who was relying on their overdraft at the moment, to cover lack of income due to Icesave.

Paul_Herring

justaquickie wrote: »

That would suit me too. Even if it's separately ringfenced and branded: WhyayeSave maybe?

Amusing (More so because I happen to live close by.)

But I'd like to point out that NBS only provide the web software front-end (as they do for FirstSave (The Nigerian one) for those that recognised how similar they were.)

NBS aren't actually holding (nor will) any money for IceSave. This isn't an KE/Heritable -> ING arrangement.

Paul_Herring

oldagetraveller wrote: »

That'll not please the Wilsons, however it's a logical solution similar to boarding a 'plane but some people can't adhere to the instructions so there will be some "queue jumpers".
I've just changed my name by deed poll to AAAAAAAAA as a precaution!

Ah - ASCII sorting order. I've decided to change my name to

!

I'd use



(That's a single space) but since it's not entirely visible it may cause problems at passport control, as would ^g since it's a bit noisy....

Me first!!!

nilrem_2

zoebel wrote: »

I think it comes down to a couple of cliches we should all learn fairly early in life and should stick with:

1. If it sounds too good to be true, it probably is
2. High (potential) returns = high risk

The cliches are true but neither applied to Icesave

1) nothing about the account led people to believe it was too good to be true it was not 'that' special or outstanding as an account

2) It did not offer a return much higher than was available elsewhere indeed better rates were to be found from UK banks/BS.