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

London05

So if we all get our money back by say December - what is the betting all the best fixed rate 6 month accounts will have disappeared.

Who do we think (UK banks/building societies) will fight the hardest for our custom? B & M have a good rate at present but will it be still available when we have our money.

wagdog

Welliesorter wrote: »

All banks, even the properly run ones, lend more money than they have in deposits. They can do this because not all depositors will need all their money back at any one time. There are (or certainly used to be) rules about the ratio of deposits to lending. The system works because people have confidence in it, or did until recently

A good tutorial on how the fractional reserve system is supposed to work is "Money as Debt". This simple system is further complicated by the banks taking on risky complex investments like collateralised debt obligations, use of structured investment vehicles for long term financing, and then hedging risk using credit default swaps.

drink-stella

Fixed Rate Bonds - from here

Those with fixed rate bonds can opt to wait for them to mature and then receive the interest due up until the maturity date, or cash them in.
The FSCS has not clarified yet if those who decide to cash their bonds in immediately will lose interest by doing this.

LeonW

The Newcatle Building Society has an ISA plus online mini cash Isa giving 6% on over £3000, as they are handling the ICESAVE compensation I wonder if it would faciltate the move to put my ICESAVE ISA money there ?

Mind they do not accept partial transfers ;-)

shindigger

unhealthyman wrote: »

It means that some people may not get paid in November. They would never guarantee a specific date to have everything sorted by otherwise they would get themselves in a pickle. What they have done is guarantee all the money will get to everyone eventually.

Exactly. As a fixed bond holder (never again), if i am given, as seems likely, a clear choice of my money now, or the chance to let the bond run until December 22nd at 6.7%, i'm clear what i will take. So therefore i will not be in the "majority" who receive the refund in November. Im the first to look for sinister double talk, but im not seeing it in this statement.
Especially as, as has been hinted, should anyone opt to end the bond "early" they stand to lose all the interset so far accrued.
This is not gospel, just what ive read on here and on that link to the BBC. Who have finally decided to report some ACTUAL NEWS, rather than Yachtgate.
I ask myself how much more irrelevant could that story be to ordinary people and the answer is NONE!

altocumulus

Interesting and slightly worrying that the FSCS are going to email all Icesave account holders.......why do I fear a scramble of phishing opportunities with this idea.......

Icesaver

altocumulus wrote: »

Interesting and slightly worrying that the FSCS are going to email all Icesave account holders.......why do I fear a scramble of phishing opportunities with this idea.......

Maybe before they send out the e-mails they should put an example of what it will look mlike on their website... and hopefully no links to follow in the actual e-mail.

I would like to see an invite to log into our Icesave accounts, where the appropriate information on getting our compensation will be posted. This seems to be me to be the most secure way of going about things.

nilrem_2

altocumulus wrote: »

Interesting and slightly worrying that the FSCS are going to email all Icesave account holders.......why do I fear a scramble of phishing opportunities with this idea.......

I imagine that the FSCS are aware of this and will take steps to advise accordingly but people are just going to have to be sensible to this as they normally should be, but I suppose there are quite a few people who are not security savy!

OTOH unless one is a saver with Icesave one is often not generally aware of what is happening and hence scammers may not be that aware about the issue either (hopefully) also this only effects around 230,000 savers and the scammers usually target the largest banks with milions of savers.

GlasWolf

shindigger wrote: »

Especially as, as has been hinted, should anyone opt to end the bond "early" they stand to lose all the interset so far accrued.

Or at least the interest accrued after the default date. Seeing as I was getting monthly interest, there had already been amounts paid in to my account - I can't imagine they'll take this away, and by the same token I can't see them penalising those on annual interest just because the accrued interest hadn't been physically credited to them.

Be interesting to see what they do with term accounts with 2+ years left on them too. Will the option be there to keep these open until maturity? Seems like it would be a lot of administrative hassle unless they're passed on to a bank/BS while retaining the existing T&Cs.

Icesaver

GlasWolf wrote: »

Be interesting to see what they do with term accounts with 2+ years left on them too. Will the option be there to keep these open until maturity? Seems like it would be a lot of administrative hassle unless they're passed on to a bank/BS while retaining the existing T&Cs.

We'll just have to wait and see.
One of my fixed term accounts matures on Wednesday. I very much doubt interest will be added on Wednesday.

I'd be quite happy for my remaining fixed term accounts to run to maturity if they were taken over by a UK bank or BS I have accounts maturing in Feb May and Oct 09 so not long to wait for two of them, but then a week is a long time in banking these days!