Icesave Fixed Rate Account FSCS Option

rosebud666

Thanks cos69, that makes sense for "lost" payment but why is the newley added interest not Septembers interest recredited + seven days interest? If we have no A/C any more then we can't query what they pay us in a year or twos time if we have no exact sum quoted.

cos69

With interest rates down 1.5% just now - might be academic, the compensation scheme looking not too bad by the time you can reinvest the money from Icesave, especially on savings with more than 18 months to run

isofa

cos69 wrote: »

With interest rates down 1.5% just now - might be academic, the compensation scheme looking not too bad by the time you can reinvest the money from Icesave, especially on savings with more than 18 months to run

I have one fixed term at Icesave until summer next year, so I'm not going for the quick payment on that one.

People with longer fixed accounts at Icesave are sure to benefit I'd have thought too.

ScarletBea

^ I agree with you, but at the same time:

dommorton wrote: »

My only concerns however would be where my money is, and how it's being looked after. Having an account with a non-bank scares me slightly, though perhaps it will actually be in the safest hands? However surely to enable them to pay interest as high as Icesave's they'll have to invest the funds elsewhere? Or perhaps they will just give my account to another bank to manage?

I would like all this clear before I agree to leave it be.

I had just started a 1 year 7% in the beginning of October, and especially now it's looking great, but what will happen in October next year?

Maybe it does look too good, but it's a way of the FSCS trying to spread the compensation payment, so easier for them (cash-wise).

Birdie100

My understanding is that essentially all our original money is lost - the FSCS will simply shell out from its compensation scheme. Since they have provided the guarantee (at least up to he £50000 limit) therefore the money must be paid out. It would seem that the FSCS is paid for by all the other banks signed onto the scheme - so to pay the 7% rate of interest on a fixed rate bond, the Government simply raises the levy it makes for the banks/ building societies to be part of the FSCS. This means that what you are actually testing is not whether or not it is possible to invest in any asset at 7% (it simply isn't), but testing the FSCS's promise. And since there would be uproar if the Chancellor now reneged on his promise to ensure us Icesavers would not lose a penny, I'm pretty certain that these 7% bonds are a good deal!

pem2

Birdie100 wrote: »

I'm pretty certain that these 7% bonds are a good deal!

Possibly, but only if on maturity they return our money is returned to us almost instantly.

bryanb

pem2 wrote: »

Possibly, but only if on maturity they return our money is returned to us almost instantly.

Bank rate down to 3.5% I guess I'll take the chance

rosebud666

My point was that they have credited my A/C with about £30 less than it should be. If they go on doing that for the 9 months it has left to run I will not be much better off. I would like a writen quote of the amount due on maturity which I can agree with BEFORE making a decision.

cos69

rosebud666 wrote: »

.... . I would like a writen quote of the amount due on maturity which I can agree with BEFORE making a decision .

That's a good point - have you worked out what you think you should be getting. I suppose you could use the AER rate to do that, although must be a calculator on the net that lets you plug in the figures.

cos69

bryanb wrote: »

Bank rate down to 3.5% I guess I'll take the chance

Maybe even 3% :mad: