Full text of email being sent to Icesavers

EalingSaver

Further to my prior post. The situation to me on FTDs seems to be completely clear:

9. What about interest on my account?
FSCS calculates claims (including interest) to the date of default (the end of the 7th October 2008 for Landsbanki - Icesave is the UK branch of the Icelandic bank Landsbanki). We will provide more detailed information on this when we write to you.

...

16. If I choose to keep my fixed rate savings account until maturity, what will happen?
We will process your claim through the manual paper-based process so far as possible within 6 weeks of receipt of a completed application form. Once this process is complete, you will receive 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.
If your contact details change, please inform FSCS.


Interpretation: Interest will be paid on all accounts up to time of default (7/10). Period. If you choose to keep you FTD open until the maturity date, that interest, and that interest only and no more, will be credited on maturity.

the only question is why they didn't add in the additional line P.S. Doing this as opposed to taking the capitial and the currently accrued interest would be a very silly thing to do as it prevents you from reinvesting the money somehwere it could earn additional interest.

EalingSaver

Baldur wrote: »

It's clearer in the general FSCS Deposit Claims FAQs http://www.fscs.org.uk/consumer/FAQs/Deposit_claims_FAQs/

OK, so minor addendum to my other prior post. The situation in regard to FTDs appears to me to be completely unclear

Or, its completely clear but in two utterly contradictory ways

He hoh.

ses99

I went to NatWest yesterday to open a new cash ISA into which to transfer my Icesave money when I receive it. The reason for being quick off the mark was that they have an offer of a 2% bonus for 12 months if you apply to transfer funds (defined as completing and submitting the ISA transfer form) from another ISA provider by 9 November.

The first thing was that the lady didn't think that I should be completing a transfer form as the money wouldn't be coming from Icesave but from my account. Having taken the email from the FSCS with me I could point out that that was exactly what we had been told to do.

After consultation with a central bod on the phone, it seems that banks haven't really had much information of the process that we are to go through to get our money back and how to deal with ISA transfers in from Icesave. NatWest certainly didn't want to commit to accepting my money and therefore the bonus rate that I'd been trying to secure.

They have stamped my transfer form with yesterday's date to indicate that I applied for the transfer yesterday in the hope that I can secure the higher bonus rate (it drops to a 1.76% bonus from 10th Nov so it's still not bad).
They opened up the new ISA and are going to get back to me when they've figured out how to handle the transfer.

I have to say that the lady I spoke to in the branch was very helpful and did her best to get as much information as possible but I think it will take a bit of time for banks to figure out how to handle ISA transfers in from personal accounts. One tip is definately take a copy of the FSCS email when you go to open your new ISA. If I hadn't have had that with me, I'd have got nowhere.

pkr

I wanted to take advantage of NatWest's ISA transfer only offer with my Icesave ISA. Even though I confirmed the gov had stated ISA status would be preserved, was told that the ISA transfer had to come from ISA provider and I therefore could not proceed. I know NatWest have got this wrong but have not pursued as was informed the offer expires today.

rapid

You will need to log on and access your account as usual. The same security measures will apply, including your User ID, unique password and memorable information. You will be guided through a process where you will be asked to confirm the balance of your Icesave account, and then make your application for compensation. This process will take a short while to complete, and you should be paid your compensation within five working days of completing the application.

Is this the balance at the time of collapse? or current balance which might include any interest earned up to the date of collapse?

suesie999

this is the current balance inc interest which you can get by either logging on and viewing statement, or phone the Icesave hotline and once they do security they will tell you

rapid

Thanks suesie, i didn't know you could still log in to the icesave site.

Darth_Calculus

Some people have been asking questions regarding IceSave fixed term accounts (fixed rate bonds), and whether if they keep the money in the account until maturity, whether they will just get interest up to the 8th Ocotber 2008, or if they will get an amount that is equal to what they would have got, had IceSave not gone under.

Well, I think this answer gives the most conclusive view yet:

33. 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 after maturity, whose interest, due at the date of maturity, will also be paid.
http://www.fscs.org.uk/faq/icesave_faqs/

That puts my mind at ease, and I think I will keep the money in there until maturity, as I dont think I can get better than 7.05% (I already have an ICICI fixed term account).

James

Skieasy

Darth_Calculus wrote: »

Some people have been asking questions regarding IceSave fixed term accounts (fixed rate bonds), and whether if they keep the money in the account until maturity, whether they will just get interest up to the 8th Ocotber 2008, or if they will get an amount that is equal to what they would have got, had IceSave not gone under.

Well, I think this answer gives the most conclusive view yet:

33. 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 after maturity, whose interest, due at the date of maturity, will also be paid.
http://www.fscs.org.uk/faq/icesave_faqs/

That puts my mind at ease, and I think I will keep the money in there until maturity, as I dont think I can get better than 7.05% (I already have an ICICI fixed term account).

James

So what about those who opted for monthly payment from their fixed term accounts? What rate of interest will they get for the full term, bearing in mind that monthly payments fetch a lower rate?

Anything on this?

ScarletBea

Skieasy wrote: »

So what about those who opted for monthly payment from their fixed term accounts? What rate of interest will they get for the full term, bearing in mind that monthly payments fetch a lower rate?

Anything on this?

The AER was always the same between monthly and yearly interest payments, because it assumes that you leave your interest in the account, so by only receiving the interest at the end of the year (or multiples of 1 year), you're actually getting the same rate.

(or is it the other way round, gross rate the same for different AERs? suddenly I got confused...)

Anyway, you'll get the rate that was contracted in the first place.