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

sympatex

Hi all, i've scanned back a few pages but i can't find the answer.

Regarding ISA transfers, from the email received from the FCSC, it sounds like they want you to transfer the balance to your nominated account, you then get posted a ISA certificate and then you give this to the new ISA provider, i presume with a cheque from the account the money's in (or some other choice of transfer mrthod avail). Does this sound about right?

In which case, you lose it's tax free status briefly, this isn't a problem but asking if anyone else has a different take on it, like perhaps leaving it in icesave then sending the certificate to a new isa provider with your icesaves accounts details. this i think is wrong though.

kenshaz

sympatex wrote: »

Hi all, i've scanned back a few pages but i can't find the answer.

Regarding ISA transfers, from the email received from the FCSC, it sounds like they want you to transfer the balance to your nominated account, you then get posted a ISA certificate and then you give this to the new ISA provider, i presume with a cheque from the account the money's in (or some other choice of transfer mrthod avail). Does this sound about right?

In which case, you lose it's tax free status briefly, this isn't a problem but asking if anyone else has a different take on it, like perhaps leaving it in icesave then sending the certificate to a new isa provider with your icesaves accounts details. this i think is wrong though.

They talk about a transfer form,which in normal circumstances you use when moving an ISA from an ISA to another ISA. WHY THE FORM IF THEY ARE SENDING YOU A CERTIFICATE.They have had weeks to word this and it is not easy to understand.

kenshaz

nilrem wrote: »

People might say you "want your cake and eat it"! AFAIAA the government did not have to compensate the whole amount as they are doing, according to the rules they only needed to pay the difference between the £16k guaranteed by the Icesave passport scheme and the £50k max, people with £16k would have got nowt and people with more than the £50k would have lost the first £16k plus anything above the £50k.

I think many of us are just grateful that the government are paying out TBH, obviously none of us wants to lose interest but we can live with it.

This is my hard earned money that we are talking about ,not food. They have frozen the money ,it was not legal for ICEsave to discriminate and pay their own nationals and not foreigners.The frozen cash must generate revenue.
I applaud Alistair Darlings stance,but if I am offered an interest rate and a guarantee, I expect interest,no-one is doing me any favours ,it is my money.

Grateful for getting my own money back and being out of pocket ,because the banks cannot manage their affairs.

oql61

Stormy wrote: »

At the moment I would just be happy to receive the first email! lol My parents have both got theirs and they have been with Icesave only a short time. Everyone I know seem to have all got theirs. I dont have mine. Typical.

Stormy, I have received no email either.

I joined Icesave early in february 2007. I wonder if this has anything to do with batch order. All I can hope is that this has no bearing on when the 2nd email will be sent to me.

Paul_Herring

kenshaz wrote: »

Why am I being greedy ,it is my money and I placed it in a bank ,not equities. The frozen money will generate revenue. Why is it greedy wanting interest from money deposited in a bank? I cannot understand your logic.

You clearly missed the bit of my post where I said it was well understood by (at least) most on here that if the FSCS ever got invoked you would not get any interest while it was being dealt with, and there are threads that discuss the possibility of this being up to 6 months without interest with others postulating that it's a gamble they're willing to take.

Complaining about it after the fact /is/ being greedy. Be grateful you got interest up to the 7th.


In answer to your original question about who's getting the interest at the moment, I imagine the tax-payer in the form of the government, since they're funding the initial £16K of each account, with the FSCS (i.e. the banks) picking up anything after that up to £50K, and then the tax-payer again for anything over that.

kenshaz

Paul_Herring wrote: »

Not at all. It's just that unlike the intricacies of the passport scheme, it was well known on these boards that money guaranteed under the FSCS would not be generating interest while the compensation was being sorted out.

You're getting your capital back, you're getting interest up to the 7th, you have the option of prematurely terminating any fixed rate bonds you had, and all (by the looks of it) before Christmas.

You're just being greedy.

They are paying us our money ,not from government funds ,but from frozen money ,no risk for the govenment. They are not paying compensation . This is unique ,not under compensation legislation,nothing is written down about this ,they can make their own rules up as they go along,and they have decided not to pay interest.

briskly_2

I've drawn up a spreadsheet to help sort out what to do with fixed term deposits. Assuming that:

A. The interest clock re-starts on the 8th October and interest accrual doesn't depend on when the FSCA get the forms back or process them

B. The interest rate is 6.7% APR (this this my original locked-in rate some might be slightly higher or lower)

C. The FSCA get the forms back by 6/12/08 and take 6 weeks to process the forms and get ready for payments (first payout likely on 17/1/09)

Calcs:

1. The gross loss of interest since 7 Oct on, for example, £35,000 is £336 if an electronic payout is requested and paid on 30/11/08.

2. Neutral point for fixed term deposits is 27/11/08 - for these accounts the loss of interest is same (around £320) whether the payment is electronic paid on 30/11/08 or by sending form and waiting until 17/1/09 for payment

3. For deposits maturing after this date, losses are reduced until, for deposits ending on 18/1/09 and after there is no loss of interest whatsoever - i.e. it is as if there had never been a problem




Hope this helps - lots of "ifs" still. please don't sue me if I've miscalulated!

kenshaz

Paul_Herring wrote: »

You clearly missed the bit of my post where I said it was well understood by (at least) most on here that if the FSCS ever got invoked you would not get any interest while it was being dealt with, and there are threads that discuss the possibility of this being up to 6 months without interest with others postulating that it's a gamble they're willing to take.

Complaining about it after the fact /is/ being greedy. Be grateful you got interest up to the 7th.


In answer to your original question about who's getting the interest at the moment, I imagine the tax-payer in the form of the government, since they're funding the initial £16K of each account, with the FSCS (i.e. the banks) picking up anything after that up to £50K, and then the tax-payer again for anything over that.

I did not gamble my money , I put it in a bank . Why should the tax-payer receive my interest? The money is frozen ,they are funding nothing ,the money has not moved .

Why should those on fixed rates continue to receive interest? They are making the rules up as they go along.

briskly_2

briskly wrote: »

I've drawn up a spreadsheet to help sort out what to do with fixed term deposits. Assuming that:

A. The interest clock re-starts on the 8th October and interest accrual doesn't depend on when the FSCA get the forms back or process them

B. The interest rate is 6.7% APR (this this my original locked-in rate some might be slightly higher or lower)

C. The FSCA get the forms back by 6/12/08 and take 6 weeks to process the forms and get ready for payments (first payout likely on 17/1/08)

Calcs:

1. The gross loss of interest since 7 Oct on, for example, £35,000 is £336 if an electronic payout is requested and paid on 30/11 08.

2. Neutral point for fixed term deposits is 27/11/08 - for these accounts the loss of interest is same (around £320) whether the payment is electronic paid on 30/11/12 or by sending form and waiting until 17/1/08 for payment

3. For deposits maturing after this date, losses are reduced until, for deposits ending on 18/1/08 and after there is no loss of interest whatsoever - i.e. it is as if there had never been a problem




Hope this helps - lots of "ifs" still. please don't sue me if I've miscalulated!

oops - sorry about the typos - I mean '09 not '08 !

Stormy

oql61 wrote: »

Stormy, I have received no email either.

I joined Icesave early in february 2007. I wonder if this has anything to do with batch order. All I can hope is that this has no bearing on when the 2nd email will be sent to me.

Looks like all my family have now got theirs (but all last night or early hours of today), they are all much more recent account holders than me. My esavings account has been open since 2006 and my ISA only about 6 or so months.

I was trying to ask if anyone had received emails today during business hours as I wonder if they are doing batch jobs evening/overnight. The question seemed to get lost in the weeds but I am loathed to start another thread as I did start a thread below about anyone NOT getting emails.