Icesave Fixed Rate Accounts - Poll

oldagetraveller

Just one maturing May 2009. Kept it there, too good a deal to withdraw and re-invest elsewhere at a much lower rate.

KingL

Bumping this, as the question seems to be coming up a lot lately...

Slim

If fixed rate accounts are left to run to maturity no interest will be paid during the term but all at the end. It is unclear to me whether this interest will be compounded or simple interest.

isofa

Slim wrote: »

If fixed rate accounts are left to run to maturity no interest will be paid during the term but all at the end. It is unclear to me whether this interest will be compounded or simple interest.

It'll be exactly the interest you'd have received if everything was normal and you left it to mature, the only difference being if you elected to have monthly interest, you'll only receive the total interest at the end of the term.

So if say you had £1000 deposit at 7% AER gross, you'd get back at the end of the term in total: £1070 gross or £1056 net.

I initiated a claim yesterday successfully, after receiving the 2nd email, setting a fixed term to run until maturity.

It's worth noting, that for fixed rate accounts, you wish to run to maturity - to initiate the claim you have to enter the current balance in the box (which is the deposit + interest paid on collapse), not the final balance due at maturity. I've checked with FSCS and this is fine, you aren't committed to this amount, and will be paid out the full maturity balance. Forms should apparently be sent out during the first week in Dec, or so I was told on the telephone.

meggsy

isofa wrote: »

I initiated a claim yesterday successfully, after receiving the 2nd email, setting a fixed term to run until maturity.

It's worth noting, that for fixed rate accounts, you wish to run to maturity - to initiate the claim you have to enter the current balance in the box (which is the deposit + interest paid on collapse), not the final balance due at maturity. I've checked with FSCS and this is fine, you aren't committed to this amount, and will be paid out the full maturity balance. Forms should apparently be sent out during the first week in Dec, or so I was told on the telephone.

I emailed them on Sunday because I am leaving my account to run to maturity but after ticking the box and entering the amount and clicking 'I agree' on the terms, it returns 'You have not completed all of the required details for all your selected options' which I clearly have.

Stompa

Hmmm, this is a tricky one. Mine matures in the first week of Jan 2009. So I can either:

1. Take the funds now, lose a couple of months interest, and reinvest elsewhere at currently available rates.

2. Let it run to maturity, get 3 months interest at 6.7%, then reinvest in Jan 2009 at what will almost certainly be much lower rates.

I wish I could make my mind up!

Primrose

Stompa - this is a dilemma I think a lot of us have had. We had a fixed rate expiring end December and were weighing up whether to cut and run with it or leave it to mature and risk losing all the current good deals before rates dropped severely. By juggling our finances around we were able to just about raise the equivalent sum from elsewhere from our Emergency Fund and obtain another fixed rate account elsewhere. Now some of our Icesave money has arrived back, we've refunded that account, but by the time our two other fixed term Icesave accounts have matured, interest rates will probably be down at 1% so the whole business is a case of swings and roundabouts.

KingL

Gerontius has kindly posted an example of the (?a) paper claim, for those that have been asking....

http://forums.moneysavingexpert.com/showthread.html?t=1312053

Stompa

Primrose wrote: »

Stompa - this is a dilemma I think a lot of us have had. We had a fixed rate expiring end December and were weighing up whether to cut and run with it or leave it to mature and risk losing all the current good deals before rates dropped severely. By juggling our finances around we were able to just about raise the equivalent sum from elsewhere from our Emergency Fund and obtain another fixed rate account elsewhere. Now some of our Icesave money has arrived back, we've refunded that account, but by the time our two other fixed term Icesave accounts have matured, interest rates will probably be down at 1% so the whole business is a case of swings and roundabouts.

Yes, I've been looking to do something similar, hence my thread here:

http://forums.moneysavingexpert.com/showthread.html?t=1309379

not sure I've found a suitable home yet though!