Icesave Fixed Rate Account FSCS Option

Richchad

It would appear from the first FSCS email that there is an option to leave your money until the fixed term expires and to receive all of your interest accrued up to the term end date.

However there is no mention if it will be at the same interest rate as originally agreed or where exactly is your money being held? :think:

On the face of it this appears to be quite attractive if your savings are still guaranteed and at the original rate as you could in theory move your money to another possily unsafe bank at a lower rate and start all over again..

stevedb11

Richchad wrote: »

It would appear from the first FSCS email that there is an option to leave your money until the fixed term expires and to receive all of your interest accrued up to the term end date.

However there is no mention if it will be at the same interest rate as originally agreed or where exactly is your money being held? :think:

On the face of it this appears to be quite attractive if your savings are still guaranteed and at the original rate as you could in theory move your money to another possily unsafe bank at a lower rate and start all over again..

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 it appears you won't gain anything by leaving you cash in the account. Hope this helps.

Richchad

Strange...why would they give that option then?

I have a print out of my account taken after the collapse and can't see any mention of a term end date only a cleared balance showing interest added up to 10/10/08.

Can't log onto the site now to see what the term end date is now....

noh

stevedb11 wrote: »

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.

No that is not the case. Fixed rate account holders have the option to leave the receipt of their compensation until the original date of maturity which may be up to 3 years from now depending on the length of the term and when it was opened. At that point the capital and accured interest will be paid.

I will be taking this option on my fixed interest accounts because, as Richard said, it will be difficult if not impossible to find similar rates elsewhere.

Nigel

Baldur

noh wrote: »

No that is not the case. Fixed rate account holders have the option to leave the receipt of their compensation until the original date of maturity which may be up to 3 years from now depending on the length of the term and when it was opened. At that point the capital and accured interest will be paid.

Quite, people are obviously misreading the e-mail, this is confirmed by the FSCS FAQs.

8. Will you compensate me for any interest I have earned on my account? Interest owed to the depositor as at the date the bank is declared "in default" by FSCS will be paid as part of the compensation amount. Notice accounts will be paid as if notice had been served on the day the account was frozen and payment will be made, including interest, at the end of the notice period. Fixed term accounts will be paid at the maturity date with the interest that would have been paid by the bank at maturity date.

narrowboat_2

Richchad wrote: »

It would appear from the first FSCS email that there is an option to leave your money until the fixed term expires and to receive all of your interest accrued up to the term end date.

However there is no mention if it will be at the same interest rate as originally agreed or where exactly is your money being held? :think:

On the face of it this appears to be quite attractive if your savings are still guaranteed and at the original rate as you could in theory move your money to another possily unsafe bank at a lower rate and start all over again..

I believe the rate will be as originally declared and so would keep my Fixed rate accounts if they had a long time to run, but as it is mine is about to mature in 3 weeks so I will just take it all out when the process kicks in.

See 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.

Sionni_bach

My fixed term(1year) fixed interest Icesave account pays monthly into an Icesave savings account. As I understand the FSCS e-mail the savings account will have the interest up to 7th October last and the Fixed interest/term account will recoup the deposit and unpaid interest on maturity. Maturity for me is April so I might as well leave it there and gain a SECURE high interest. Icelandic banks give a new light on frozen accounts despite global warming!!

Sionni_bach

Sionni_bach wrote: »

My fixed term(1year) fixed interest Icesave account pays monthly into an Icesave savings account. As I understand the FSCS e-mail the savings account will have the interest up to 7th October last and the Fixed interest/term account will recoup the deposit and unpaid interest on maturity. Maturity for me is April so I might as well leave it there and gain a SECURE high interest. Icelandic banks give a new light on frozen accounts despite global warming!!

[/8. Will you compensate me for any interest I have earned on my account? Interest owed to the depositor as at the date the bank is declared "in default" by FSCS will be paid as part of the compensation amount. Notice accounts will be paid as if notice had been served on the day the account was frozen and payment will be made, including interest, at the end of the notice period. Fixed term accounts will be paid at the maturity date with the interest that would have been paid by the bank at maturity date. ]

isofa

Point 4 from the FSCS email:

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.

2little2late

can anyone answer this please.

If I take my money invested in a one year fixed rate bond via the electronic process 11 months after I opened it will I receive 11 months interest at the full 6.7% rate?

If not what would the rate be.

qamwc1

2little2late wrote: »

can anyone answer this please.

If I take my money invested in a one year fixed rate bond via the electronic process 11 months after I opened it will I receive 11 months interest at the full 6.7% rate?

If not what would the rate be.

You will get 6.7% up to 7 October if you take the electronic route.