ICESAVE Question - Fixed interest account

MILLWALLFC

I have a 6 month fix interest account that matures on the 13th Januaury 2009.Now my thinking is i may as well leave it there and get the full amount of interest back.

However are there any risks if i leave it with the FSCS. ?

Also i have 2 other accounts a Cash ISA and a normal account, both of those i probably take the money out now, can i select different option for both accounts.

What will everyone else be doing with Fix accounts ?

For fixed rate savings account holders, Icesave offered a range of accounts which are not repayable in full before their maturity (in some cases for up to three years). If you wish, you will be able to use the same electronic payment process to be paid the principal sum plus interest on that sum up to and including 7 October 2008. In other words, you do not have to wait until the end of the fixed term to have your money back. As above, payment will be made to your selected nominated account. On the other hand, if you prefer to wait until the end of the fixed term, and receive interest which would have been due at maturity, the electronic process option is not available to you. However, you should still log on to the website and tick the appropriate box to confirm that this is your wish. At that time, we will be notified that you wish to wait until the end of the fixed term and we will then send you an application form to complete and return to the FSCS. As described above, this process will be slower, although we aim to complete this process so far as possible within 6 weeks of receipt of a completed application form, with payment following the maturity date of the account. You should also be aware that if you hold a fixed rate savings account that pays interest on a monthly, quarterly, or annual basis, and you decide to hold that account until maturity, you will not be paid any interest prior to maturity.

masonic

My fixed rate account matures in two weeks. By the time my paper application would get processed, I'm likely to lose at least a month's interest after my account matures before I got my money back.

If my account matured in January or later, I'd not hesitate to leave it in.

Paul_Herring

MILLWALLFC wrote: »

What will everyone else be doing with Fix accounts ?

I have 6 maturing between Feb and Oct, I'll be collecting them ASAP, since the alternative looks to be applying 6 times by post.

arcadia00

I have 2 maturing in May and June. I don't really fancy applying twice by post with possible 6 weeks loss of interest in each case. Probably take the money now and rehouse it.

noh

arcadia00 wrote: »

I have 2 maturing in May and June. I don't really fancy applying twice by post with possible 6 weeks loss of interest in each case. Probably take the money now and rehouse it.

I don't think there will be six weeks loss of interest in your case. The email states they may take six weeks to process the paper application but as the application could be sent to them this month it will be processed long before your accounts reach maturity.

I will be leaving my 5 fixed accounts until maturity.

Nigel

daveoc22

I have one fixed account that does not mature until February 2010.

Is the email saying that if we don't take our money until maturity we will get the rate of interest that applied to the fix?.

If we do get our interest then where is it coming from, after all everyone else has only had interest up to October 7th/8th and then nothing after that.

Who would be managing the account in this interim period (Newcastle B.Soc?) and would they take over the account and fix.

stevedb11

Last time I checked my Icesave fixed rate account the Term end date had been changed to the Date Icesave went bust, (7th of Oct 2008 I think), so you won't gain anything by leaving you cash in the account. Hope this helps.

arcadia00

noh wrote: »

I don't think there will be six weeks loss of interest in your case. The email states they may take six weeks to process the paper application but as the application could be sent to them this month it will be processed long before your accounts reach maturity.

I will be leaving my 5 fixed accounts until maturity.

Nigel

Well, ideally, I'd like to leave my 2 to mature as well. So you're saying I do the paperwork now, and they will remember to promptly post me a cheque in May then another in June. I'd like to believe that will happen, but I havent a clue what will happen, which is leaning me toward taking the money now.

moon-pig_2

arcadia00 wrote: »

Well, ideally, I'd like to leave my 2 to mature as well. So you're saying I do the paperwork now, and they will remember to promptly post me a cheque in May then another in June. I'd like to believe that will happen, but I havent a clue what will happen, which is leaning me toward taking the money now.

[FONT=Helvetica,Arial,sans-serif]"On the other hand, if you prefer to wait until the end of the fixed term, and receive interest which would have been due at maturity, the electronic process option is not available to you. However, you should still log on to the website and tick the appropriate box to confirm that this is your wish. At that time, we will be notified that you wish to wait until the end of the fixed term and we will then send you an application form to complete and return to the FSCS. As described above, this process will be slower, although we aim to complete this process so far as possible within 6 weeks of receipt of a completed application form, with payment following the maturity date of the account. You should also be aware that if you hold a fixed rate savings account that pays interest on a monthly, quarterly, or annual basis, and you decide to hold that account until maturity, you will not be paid any interest prior to maturity.[/FONT]"

narrowboat_2

Interest on Fixed Rate Accounts will be paid on their maturity so you can opt to leave them and get the full rate which seems a reasonable deal considering. As mine will mature in 3 weeks time I'll just take it out, but otherwise I'd be leaving it to run its course and get the good rate that was being offered.

See Icesave FAQs Question 28. http://www.fscs.org.uk/faq/icesave_faqs/

28. If I claim under the manual process my claim will take longer, will I be compensated for interest I could have earned if I had been able to complete the electronic process?
No. Interest will be paid up until the date of default i.e. up to and including 7 October 2008. The only exception will be for those who elect to be paid for fixed term accounts at maturity, whose interest, due after the date of maturity, will also be paid.