All these complaints about 'lost interest' in Icesave

thor

Icesave, I think you have misjudged the feelings of the overwhelming majority of people waiting on the FSCS.
Sure there are a few who are wanting all the interest even after the default date but nearly everyone else has the same attitude as myself which is that we are grateful to get our deposits back and even more grateful that interest will be paid upto October 7. I think the responses you have got so far bears that out quite clearly. There is no need for tin hats.

Icesaver

thor wrote: »

Icesave, I think you have misjudged the feelings of the overwhelming majority of people waiting on the FSCS.
Sure there are a few who are wanting all the interest even after the default date but nearly everyone else has the same attitude as myself which is that we are grateful to get our deposits back and even more grateful that interest will be paid upto October 7. I think the responses you have got so far bears that out quite clearly. There is no need for tin hats.

I started this thread after reading a number of posts on this forum by various individuals re their loss of interest post 7 Oct. I was interested to see what sort of reaction I'd get to my views.

It's heartening to learn that the majority of respondents to this post have supported what I said, and like you say I can put my tin hat away.:T

Sapphire

Polka_dot wrote: »

Well said Icesaver, though I do feel empathy for people who are reliant on interest as a monthly income.

I am just so glad that the government has been willing to step in on this occasion

Isn't the money coming from taxpayers, at the orders of the 'government'?:cool:

Or is there some separate fund with money stashed in it specifically for such purposes?

agsnu

Sapphire wrote: »

Isn't the money coming from taxpayers, at the orders of the 'government'?:cool:

Or is there some separate fund with money stashed in it specifically for such purposes?

The first ~£16k should be coming from Iceland, but we'll see about that. The rest up to £50k should be covered by the FSCS, which is funded by levies imposed on financial organisations in this country - it was pre-funded to the tune of £4bn, but it's having to borrow from the BoE in the interim because of the huge payouts it's had to make recently. The money will theoretically be recouped in future years and repaid with interest.

The over-£50k guarantee is taxpayer money.

arjar

I think it's about time someone challenged Icesaver's supine gratitude for the actions of the Government. Surely it's just a cynical gesture to placate the masses at a time when zillions (well, billions) of public £ are being given to usurers (i.e. banks) to compensate them for their incompetence?

But it won't be me. I agree that the rescue scheme is generous at a time when most Governments and institutions are diving for cover. I'm not so much grateful to the FSCS civil servants (though they're doing their best in difficult circumstances, and deserve patience and support), as to whomsoever it was that decided that compensation to retail depositers should be complete regardless of the theoretical limit of UK liability and the inability of the Icelandic authorities to fulfill their promise. As far as lost interest is concerned, well that's a technicality which might exercise the minds of Gradgrind bank accountants but shouldn't diminish the sense that UK depositers are lucky to have survived this collapse relatively intact.

Oh - and we might spare a thought for the people of Iceland, who are in deeper s**t than any of us.

investor7_2

The arguments in favour of Icesavers being paid interest from after 7th October are twofold

1. The government really had no option but to pay compensation to Icesavers after they recompensed Northern Rock savers last year. Following this argument they should compensate us for all interest up untill we are repaid our money.


2. Having decided to pay savers with fixed rate accounts interest up untill the date they mature (if savers wish to keep those accounts going ) i think that a court of law would deem it inequitable not to pay the rest of us interest from the 7th of October up untill the date we are repaid our money.

qamwc1

investor7 wrote: »

The arguments in favour of Icesavers being paid interest from after 7th October are twofold

1. The government really had no option but to pay compensation to Icesavers after they recompensed Northern Rock savers last year. Following this argument they should compensate us for all interest up untill we are repaid our money.


2. Having decided to pay savers with fixed rate accounts interest up untill the date they mature (if savers wish to keep those accounts going ) i think that a court of law would deem it inequitable not to pay the rest of us interest from the 7th of October up untill the date we are repaid our money.

1. AD actions were nothing to do with Northern Rock but about people losing confidence in banks and there being "queues" to withdraw money from losts of banks - then the problem facing HMG would have been unthinkable. We can be cynical about HMG but at the same time KE was transferred to ING and nobody has lost interest (or will lose interest after they deal with the backlog). Icesave was setup in a way that they could not do that and so we are where we are.

2. The rules with regard to interest are in the FSA Handbook - they have not dreamt this up just to short-change Icesave savers. Please remember that paying compensation means somebody has to find the money - the advantage of allowing fixed term savers to leave their money is that it allows the finding of cash to be managed.