Kaupthing Edge fixed term deposits

rach2008

Hi everyone

At a time when people were withdrawing their money with Kaupthing I decided to put money in thinking with interest rates going down and my savings guaraneed by the Government, it was a good idea. I moved £20000 into a 7.67% fixed rate 3 year account. The money was lost in cyber space for around 10 days. I phoned Kaupthing for reassurance that it was just because of their processing backlog and whilst on the phone took the opportunity to ask what the differences for me would be with ING now running the bank. They said there were no differences - the accounts would stay the same. Today I received an email (note some 6 weeks on from the date the firm went into administration) (and note also not even in letter form) saying that there had been a computer glitch and I shouldn't have been able to put the money in the fixed term account. They have therefore moved it back to their lower rate account. I am very angry about this as I have lost interest on the money in 6 weeks and much more potential interest over 3 years. I could have moved it into another high interest account with a different provider but missed this opportunity.

Anyone had this happen to them?

I'm thinking this can't be legal. They didn't say there was a 'computer glitch' at the time and should therefore give me what they advertised. I feel the new owners have decided they can't afford to pay the new rate and so have concocted a 'computer glitch' story.

Anyone have any feedback for me?

Many thanks

Baldur

Lots of discussion on this thread - http://forums.moneysavingexpert.com/showthread.html?t=1280421