Icesave – loss of interest – FSCS renege on Treasury undertaking

dillydilly

I think the OP has a fair point. The reason the govt guaranteed all savings was not a cynical ploy to gain votes, it was because they understand that an efficient financial system, which underlies the economic wealth of this country, is based on financial confidence whereby people can trust with 100% confidence that savings on deposit with the approval of the UK authorities are safe. Take away this trust and confidence and the financial system collapses, as does any chance of future economic wealth. Of course people have lost money - the money they could have earnt had their savings been in another bank account. There are two precedents - the interest being earned on Icesave fixed bonds and the interest earned after KE accounts were transferred to Ing. Investing in Icesave prior to the collapse was no more risk taking than investing in HSBC given the authorities were happy with the passport arrangement - even Which magazine had it as their best buy savings account in its September edition, I hardly think you can blame the savers as taking excessive risks. I was getting 6.25% on my savings - hardly excessive...

and looking again at Darling's words, when asked why then he won't commit to a 100% guarantee on all savings, his response was that you can judge him by his actions - ie. they would do exactly this again if it happened to any other bank, as they subsequently did with KE - transferred the accounts but Ing wouldn't have accepted them for nothing... the reason it's dangerous to give a 100% guarantees is that it encourages excessive risk taking by financial institutions, on the grounds that they won't have to take any consequences if it all goes belly up. The govt have made it quite clear however that 'no UK saver will lose their savings' - effectively a 100% guarantee. You watch - if a £50k covered bank goes Ts up, they'll cover all their savings too - though its easier to get them absorbed into a larger institution.

PJL1

ScarletBea wrote: »

I'm not complaining either, gosh!
Some people always want more, more, MORE! hehe
Just be grateful that you're getting compensation, according to the guidelines. I never EVER understood the statement that our money's protected and that we wouldn't lose anything (in any bank account) as meaning that we wouldn't lose interest - everywhere we see that information, it always refers to the original invested capital.

I can't believe that people are quibbling about losing interest when so many investors have lost their life savings. i.e. Savers with KE IOM and even share holders in supposedly safe institutions like Bradford & Bingley. Like so many savers I transferred a large sum out a couple of days before the crash. I can't describe the sick feeling when it appeared back in my Icesave account a few days later, and the relief after the announcement by the British government that we would get it back!
Have a look at these stories posted by IOM investors.
http://www.ksfiomdepositors.org/forum-topic/your-stories

bjorn_again

I urge readers to write to the FSCS, make a formal complaint, and seek recovery of interest in accordance with the Treasury’s undertaking.[/quote]

Will many be writing to the FSCS? I think you'll find that's a "No".

andy_l_2

One word sums it up "Ungrateful" be thankful you getting anything back at all :mad: The loss of a couple of hundred quid hasn't even crossed my mind but loosing the lot has.:cool:

Vectra

Me too I am grateful just to get my money back,and my wife's I for one am not going to upset the FSCS and my eternal thanks to Mr Darling and Brown for making me feel happier about my duff investments in Icesave and Kaupthing Edge,my money being returned thank god by Ing Bank in the latter.
I am gonna vote for Mr Brown from now on as well he is also giving me a £250 xmas box.

nrsql

Interest hadn't been added tote account and there was no reason for it to be. I think we're lucky to get interest paidto the 10th. I would have expected those with monthly interest to have received anything up to the last interest period before it did -similarly those with annual interest. Was a surprise to get the pro rata up to the 10th and to retain ISA status.

Don't really see how you can lose money that has never beenn in the account.
Ok you're not getting the interest you might have expected but that's a problem with your expectations.

soulsaver

And remember Darling pulled forward the guarantee up to £50k to effective Oct 7th: Best birthday prezzie I ever had, part one.
Then he said cover all retail deposits... best birthday prezzie I ever had part 2.
Progresses even though there is the diplomatic incident excuse for prolonged feet dragging.
Then you find you can leave your fixed rate bond to maturity at 7% in the 'safe' hands of HM Govt when the BoE drops base to 3%......

Write & complain? WRITE AND COMPLAIN?? Wake up and smell the cofee.
We aint got the dough yet but he's more likely to get nominated for beatification than a letter of complaint from me....& I'm not a labour voter!

Guesthouse

I urge readers to write to the FSCS, make a formal complaint, and seek recovery of interest in accordance with the Treasury’s undertaking.[/QUOTE]

I don't have the time to read through the T&Cs with anal interest but up until recently you wouldn't have got more than what? £32,000 back. Sometime just before Iceland fell over it was announced you would get £50,000 back and then in the case of IceSave (and as far as I'm aware only Icesave) it was announced savers will get every single penny back. My savings may have been modest but I potentially stood to lose most of it, along with many others. When the money arrives in my nominated account and the prospect of a single roomed cardboard box in a damp archway with a strong lager diet has receded I'll think about writing to the FSCS with my sob story about missing out on some interest but it's pretty unlikely.

slipp_digby

I wont be. I have 32k tied up and I am glad to be getting back my original investment with some of the interest.

It strikes me that the biggest interest 'loses' will be when people had significant amounts of cash in ICESAVE, probably against the then recommended 35k limit.

I am grateful that the money I invested will be returned to me. If someone had said when ICESAVE defaulted that I would lose £100-£200 in interest but get my £32k back I would have taken that - as I suspect you would have.

abarthman

I'm pleased to see that the vast majority of people who have been bailed out at the taxpayers' expense seem very grateful and relieved at the outcome, but I am shocked at the attitude of the OP and a few others.

I'm sure that most reasonable people will regard your greed and ungratefulness with utter contempt.

You should just think yourselves very, very lucky that you haven't been left high and dry here, and stop moaning.