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

bjorn_again

masonic wrote: »

You can open a new ISA for a transfer without subscribing new funds, but typically you would need to submit the transfer details at the same time as your application. By far the easiest option is to transfer into your existing ISA. You do realise you each have a £50k compensation allowance and that some "brands" within the Santander group are operating independently with regards to FSA registration (and therefore compensation).

Thanks for the response - two problems - my Abbey ISA is maxed out for this year so can't put any more in and on top of my Abbey we have between us more than £100k in Cahoot.

Baldur

bjorn_again wrote: »

....my Abbey ISA is maxed out for this year so can't put any more in and on top of my Abbey..

You can still transfer the Cash ISA from Abbey to any provider that accepts inward transfers, I have done so on several occasions over the years - many do not require you to deposit additional funds.

NonGeographicalMan

Chancellor Alistair Darling said the government would ensure no individual UK depositor would lose any money as a result of the bank's failure. The loan will go towards covering the cost of compensating those who lost their money.

Due to the non availability of my funds in Icesave I am having to cash in a one year £10,000 Nationwide ISA bond early with 3 months interest penalty. That costs me £155 in lost interest penalty.

Then if the government takes till the end of November to return my £33,000 that costs me £300 in lost interest because the government does not think it has to pay any interest (even some modest standard instant access rate of a large high street bank of say 4.5% or whatever) from the date Icesave accounts were frozen on October 7th.

So Mr Darling assures me I will not lose any money as a result of the bank's failure but in fact I will be losing over £450 in lost interest.

The FSCS should be paying interest of some kind after October 7th as otherwise gross unfairnesses will occur for people in very complicated situations where it takes several months to prove to the FSCS they had the money with Icesave. To have an FSCS and then pay zero interest from the day the bank freezes to pay out day seems to go against the whole principle of the scheme that investors should not lose out if a deposit taker goes belly up.:mad:

barak

bjorn_again wrote: »

Thanks for the response - two problems - my Abbey ISA is maxed out for this year so can't put any more in and on top of my Abbey we have between us more than £100k in Cahoot.

None of my business, of course, but as a fellow 'cahoot-er' I do wonder why you keep more than £100k with cahoot :undecided

kenshaz

NonGeographicalMan wrote: »

[/b]Due to the non availability of my funds in Icesave I am having to cash in a one year £10,000 Nationwide ISA bond early with 3 months interest penalty. That costs me £155 in lost interest penalty.

Then if the government takes till the end of November to return my £33,000 that costs me £300 in lost interest because the government does not think it has to pay any interest (even some modest standard instant access rate of a large high street bank of say 4.5% or whatever) from the date Icesave accounts were frozen on October 7th.

So Mr Darling assures me I will not lose any money as a result of the bank's failure but in fact I will be losing over £450 in lost interest.

The FSCS should be paying interest of some kind after October 7th as otherwise gross unfairnesses will occur for people in very complicated situations where it takes several months to prove to the FSCS they had the money with Icesave. To have an FSCS and then pay zero interest from the day the bank freezes to pay out day seems to go against the whole principle of the scheme that investors should not lose out if a deposit taker goes belly up.:mad:

I guess £450 is a loss and we had a promise ,but some are getting interest. I wonder who decided that. The money to FSCS is a loan,therefore they must be intending to recoup the money via a legal action. We must have long memories,because when they do I want my interest.
Paul Herring what is the situation with your bank are they going to start lending after the government bail-out,because there is a moral question ,first they are not safe with our money ,now they are not returning help . A sorry bunch. Regulate. The MP's are not happy ,so you better watch out.

bjorn_again

barak wrote: »

None of my business, of course, but as a fellow 'cahoot-er' I do wonder why you keep more than £100k with cahoot :undecided

Opened up the accounts several years ago and just built them up. Liked how they worked and until recently never really bothered about chasing rates or considered that Banks could go to the wall. We have started to spread our funds a bit as a consequence of recent events but have not been unduly concerned that Abbey (Santander) could fold. I shall be retiring soon and will draw down on the Cahoot to start with so I figure that it won''t be long before we are under the threshold. Do you have any concerns over Abbey, are their rates not up to par or do you just feel it is best not to exceed the £50k mark?

NonGeographicalMan

bjorn_again wrote: »

Do you have any concerns over Abbey, are their rates not up to par or do you just feel it is best not to exceed the £50k mark?

Its best not to exceed the £50k whatever happens because in the end the government might not be able to afford to keep funding the bailouts. Having said that having bailed out the Icelandic banks they are more or less obliged to bail out anything else with a British parent that gets in to trouble.

I get the feeling the banking collapses are reaching an end now but may be there is another major one still to come?

barak

bjorn_again wrote: »

Do you have any concerns over Abbey, are their rates not up to par or do you just feel it is best not to exceed the £50k mark?

I use cahoot as my main current account and don't have any particular concerns about the Santander Group, but although their savings account is useful for temporary large deposits, I move excess balances to accounts with better rates, and now don't exceed £47k (to allow for accrued interest) with any institution.

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 17/1/09)

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!

I've just seen on another part of the forum that someone called the FSCS and was told that the claim forms would only be posted out after the maturity date - so the six week wait begins then. We all know that with the FSCS one week soon turns into two, so it is likely we stand to lose up to 12 weeks interest by waiting until maturity. This puts these calculations up the spout and I think I will just take the money electronically and run. But we do need absolute clarity over this! Can anyone contact Moneybox Live etc to find out for sure?

~Chameleon~

How do you figure out we will lose 12 weeks interest by waiting until maturity?