IMPORTANT! FSCS Icesave payouts to start in November...

Welliesorter

Tom_Jones wrote: »

I would have thought they have details of your linked account and provided you confirm the correct details I would envisage no problem. I have asked Smile if it's possible to reinstate a DD as we cancelled ours to Icesave a few days ago also.

I'd be very surprised if it matters. A direct debit is for taking money out of your account. The process for paying the money back in is likely to be via a BACS payment. There doesn't need to be a direct debit mandate in place for that to happen. Anyone who has your account number and sort code can pay money into your account!

Edit: I now realise that the original question was about what happens if you've closed your linked account. I'd be surprised if the FSCS hasn't thought of that. Presumably they'll have some means for you to give them details of a different account if necessary. Surely there'll be lots of people with reasons for not wanting the money to be transferred to a linked account automatically, even if it's still open.

I hope there is some flexibility because there is another scenario. My Icesave account was linked to not one but two accounts: my bank current account and my Nationwide FlexAccount. The latter nearly always has a zero balance because I only use it for feeding money into and out of a Nationwide e-Savings account, which can't be run separately.

I would have set up a direct debit from the Nationwide Account when I transferred nearly all the money I had in the Nationwide into Icesave. Life would have been a lot easier if I hadn't done that but never mind.

DMX_2

I think we should say a big thank you to everyone, on this website and the government who has actually sorted this out quite quickly, even if we have had a few weeks of waiting. It’s easy to criticize but we should all be saying a big thank you if it actually goes through. Remember Fairpack? Not on the same scale but people still didn't get any help. Am so grateful this has taken a turn for the better as I am about to be made redundant.

dancingdandare

This is great news for all. Thank you to all involved.

I have one question, I was due interest on the 11th October on my easy access monthly interest account, therefore because of the default i missed any payment. Therefore am i going to get the months interest minus the 4 days from default. i.e 11th Sept to 7th October? As its a fair bit of money to me and i could use it in the current environment.

Anyone got any idea?

csiman

Transalper wrote: »

Just a quickie before I go out and get very very drunk (now I can almost afford to). I'm still unclear when we will get the first contact from FSCS and how. It could be crucial to me to know to the day as I'm off backpacking on 13th Nov to places on the globe that don't have telephones let alone internet. Will I have to get power of attorney sorted out for someone to sort my compensation out? How can I make sure the ISA account deposits go into another, can I open another ISA with no funds (as I used my tax free allowance) before the compensation date? I know one thing for sure I can't just relax 100% until I see my deposits in a printed statement.

Yes you can open a new ISA with zero funds. I did a week ago with the A&L and will transfer my icesave money from my linked account once received (unless instructions from FSCS differs of course).

oldfella

my theory on how they are going to do this ...

set the easy access interest rate to 0% or 4% or whatever from 8/10
turn the system on again - its been stuck at 9/10
this will release fixed rate accounts that have matured and calculate interest to maturity - this assumes that fixed rate accounts wont be paid until they mature
request people to login to make withdrawals to linked accounts
phase the withdrawals in some way - maybe random or alphabetical sequence each day

the only part of this which will need a program change is to phase the withdrawals - this is the key thing, they will want to minimise system change and manual admin

MoneySavingNovice

Can I suggest that if not sure of their linked-account, check on the IceSave site - its quite easy to do and you can change it as well (via the post)

The other thing I have done is to cancel my Direct Debit. As this is only used for taking money from my current account to my IceSave account (which I obviously don't want to do) it is just a safety move.

isofa

nilrem wrote: »

If they decide to 'mature' all fixed accounts on the day that Icesave went defunct (7th Oct) I would imagine that they will pay interest up until that date.

OTOH if they stick to the term and pay at it's true maturity date (unlikely I believe, it would be too much trouble) I imagine that interest will be paid as normal, it would hardly be fair to tie savers to the term and pay no interest.

The only other option I can see for fixed is for them to transfer to another bank or building society till the original term ends but maybe they would give the saver a choice first?

I'd assume the former too nilrem. But on the FSCS website FAQs point 8 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.

They make a distinction between "notice" accounts and fixed term accounts. So, unless I've read it wrongly it appears that fixed term accounts will be paid at the end of the term. So if that is true, people will surely benefit from the entire fixed term high rate of interest, or...?

Any thoughts?

meatandtwoveg

Umm, so if your account is fixed rate till September next year, so another year to run nearly, you opted for monthly interest, but are recieving nothing at the moment.

You will now get you stash back next September with all interest owed, is this correct?

~Chameleon~

isofa wrote: »

I'd assume the former too nilrem. But on the FSCS website FAQs point 8 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.

They make a distinction between "notice" accounts and fixed term accounts. So, unless I've read it wrongly it appears that fixed term accounts will be paid at the end of the term. So if that is true, people will surely benefit from the entire fixed term high rate of interest, or...?

Any thoughts?

But their most recent announcement that they hope to return all our money in November indicates they probably won't be running the fixed accounts until maturity. I agree with nilrem that the likely scenario will be that we will only receive interest up to the point the bank defaulted, i.e. 7th Oct.

justaquickie

isofa wrote: »

I'd assume the former too nilrem. But on the FSCS website FAQs point 8 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.

They make a distinction between "notice" accounts and fixed term accounts. So, unless I've read it wrongly it appears that fixed term accounts will be paid at the end of the term. So if that is true, people will surely benefit from the entire fixed term high rate of interest, or...?

Any thoughts?

I agree the wording of the FSCS (FAQ) Ts and Cs is open to interpretation - although it does seem to clearly state that fix term bonds will run to maturity and deliver the expected interest - but my wider question is:

Do these Ts and Cs apply when the scheme is called upon to top-up a passport scheme? Or, are all bets off and they will make a decision as they best see fit?