Is Icesave now the best place to leave fixed rate accounts?

Baldur

shindigger wrote: »

Can someone get clarification on this?

Yes, you can - as per the FSCS e-mail:

If you have any questions, please contact FSCS’s Customer Helpline on 0845 7300 131 (Icesave enquiries only).

DocProc

It isn't clear as to whether the repayment of claims 'in total' is to include Fixed Term accounts and the interest due on them right up to the original contractual termination date.

For non-Fixed Term Accounts, interest is only going to be paid out, that has accrued up to the date of 7th October.

Surely, if the regular 'easy access' type of customer gets a payout, say in mid November, and doesn't get interest from 8th October to mid-November, then neither should other people?

If they did, it would be one rule for some and another rule for others?

Baldur

DocProc wrote: »

It isn't clear as to whether the repayment of claims 'in total' is to include Fixed Term accounts and the interest due on them right up to the original contractual termination date.

For non-Fixed Term Accounts, interest is only going to be paid out, that has accrued up to the date of 7th October.

Surely, if the regular 'easy access' type of customer gets a payout, say in mid November, and doesn't get interest from 8th October to mid-November, then neither should other people?

If they did, it would be one rule for some and another rule for others?

There is one rule for variable rate products and another for fixed rate products - these have applied since well before the Icesave situation - http://www.fscs.org.uk/consumer/FAQs/Deposit_claims_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.

KingL

Irrespective of one's moral take on the situation, it looks like that's how it's gonna be....

DocProc

I hadn't seen that.

What excellent news, for those that it's applicable to.

Since I don't have a Fixed Term account with Icesave, it's a bummer that I was only involved in the theory of it rather than the actuality.

shindigger

Baldur wrote: »

Yes, you can - as per the FSCS e-mail:

Hey ya know what? I just rang them!

The paperwork process will only start AFTER the bond ends. They wont run the paperwork concurrently. The process could take a MAXIMUM of 6 weeks to complete. Depending on how busy they are.

I'll be having my cash straight out in that case.
With rates heading south and likely to be nowt by Xmas i need to act quickly methinx.

~Chameleon~

I know they say the process could take UP TO SIX WEEKS but thinking about it, all those of us with fixed rate accounts are going to have different maturity rates so it's going to be a continual process rather than the initial rush they will no doubt have to deal with in the immediate weeks.

Surely this will make the process run more smoothly and in reality we could receive a cheque within 1-2 weeks, depending on the postal system?

KingL

shindigger wrote: »

Hey ya know what? I just rang them!

The paperwork process will only start AFTER the bond ends. They wont run the paperwork concurrently. The process could take a MAXIMUM of 6 weeks to complete. Depending on how busy they are.

That's interesting, I rang them and they told me the exact opposite :huh: (i.e. that they would send out the paperwork straight after you indicate that you want to go that route).

KingL

Ok, now now I have phoned them for a second time to check which version is correct!

The lady I spoke to (the second time) said that the forms wouldn't be sent out until the end of the term, then when I told her that I had been told the opposite earlier in the day she went off and checked with 'head office' and came back with the revised story that forms would be sent out at the beginnning of the process (i.e. in early December) and that monies would be paid out a day or so after the end of the term*.

So I've had it now from (1) from the confident and competant sounding guy on the first call and (2) the lady who checked it out with head office; that paper forms for paying out on retained Term Deposits will be done at the front end of the process.

I think I'm satisfied with that now.

I've asked them to clarify it in writing on the FAQ, but don't hold out very much hope for that. Maybe it'll be covered in the second email (which are apparently coming out imminently).


* - that is, for my circumstances which is one maturing next Summer. People with terms maturing in December will still be subject to the 'six-week' processing delay

shindigger

KingL wrote: »

Ok, now now I have phoned them for a second time to check which version is correct!

The lady I spoke to (the second time) said that the forms wouldn't be sent out until the end of the term, then when I told her that I had been told the opposite earlier in the day she went off and checked with 'head office' and came back with the revised story that forms would be sent out at the beginnning of the process (i.e. in early December) and that monies would be paid out a day or so after the end of the term.

So I've had it now from (1) from the confident and competant sounding guy on the first call and (2) the lady who checked it out with head office; that paper forms for paying out on retained Term Deposits will be done at the front end of the process.

I think I'm satisfied with that now.

I've asked them to clarify it in writing on the FAQ, but don't hold out very much hope for that. Maybe it'll be covered in the second email (which are apparently coming out imminently).

They really need to clear this up and also end the ambiguity over the rates we will get.
Thanks for your post. As has has been said, i think as we will all have different maturity dates, i dont think it will take 6 weeks, but as my bond runs out in Dec, i think i have to move quickly to secure anything approaching a worthwhile rate.