Icesave

tonkoro21

We have money in a fixed rate bond (maturing around June next year) in Icesave. We've recently received the Icesave email and it says something to the effect that we can opt to take the money out immediately or instead to leave the money until it matures and we'll receive the interest as per the orginal terms of the agreement.
My instinct is 'once bitten twice shy' - ie get the money back and put it into a 'safe' UK based account where I can get to it. But it seems instead we can opt to leave it there and continue to get the high interest rate originally promised until June. My question is, is this safe? Where will the money be held? It seems also elsewhere to be indicated that the interest on savings will only be paid up till the time the banks stopped trading (7th or 8th October) so I was a little confused by this. Does anyone else know more about this?
Thanks

KingL

You can claim it now and lose interest from 7 Oct to the point of claim or you can choose to let it run to term and take the full interest.

In the interim the funds will be held by (or at least on behalf of) the FSCS, so it's probably as safe as it ever could be.

If you choose to stay on until the end of the term, you will claim via the manual process. When you get your second email, logon and indicate that you want to use the manual process. You will be sent a form during December.

Have a read of other threads in the forum. Dozens of people are in the same position.

Baldur

If your fixed rate account is not safe with the FSCS, then nowhere you can put it is safe.

The FSCS remit has always been that Fixed Rate deposits are paid on the original date of maturity and with the interest contracted with the defaulting institution, whereas variable rate deposits are only paid interest up to the date of default.