Icesave Fixed Term Deposit Accounts

1+1=3

Ok, this is a thread specifically about Icesave Fixed Term Deposit accounts.

I've read some conflicting views about recovering Icesave FTD's, so hopefully it can be cleared up here.

I've just received my 2nd email, and as I understand it I have 2 options.

1) Withdraw my FTD account money electronically now, in which case I receive the originally invested amount, plus interest accrued up to 7th October 2008.

2) Leave my FTD account until maturity date, in which case I receive the original amount, plus all interest up to the maturity date.

So, if I choose option 1, I lose the interest that would have been accrued for most of October and November, whereas if I choose option 2 I don't lose out in any way.

Can anyone tell me if I've got this right ?

Many thanks,
Andy.

Wolfhound

Hi Andy, you are right. I chose option one simply because I wanted to get
another fixed rate up and running now, rather than take my chances with
who knows what rate next year. Hopefully i've got a Saga 1 year fixed rate
at 6.85pc. Time will tell if I meet the 30th November deadline.
:eek:

masonic

The only loss of interest with option 2 is the delay in the FSCS sending you your compensation cheque after your account matures. That's almost certainly not going to take the best part of 2 months. Unless your account is very close to maturity now, waiting is the best option if you are only worried about potential interest losses.

Chalet-Frollie

Is there any MORE risk leaving the money for the full fixed term length?

cos69

Chalet-Frollie wrote: »

Is there any MORE risk leaving the money for the full fixed term length?

Probably less risk than moving the money elsewhere. Your in effect entering into a contract with the UK government to be paid your money plus interest at maturity, so its as safe as the UK government. For that reason I plan on leaving some of my fixed rate accounts to maturity at very good interest rates.

isofa

There are many detailed threads covering this topic for fixed rate accounts, including a poll of what people are doing, do a search.

There is no additional risk for leaving the money until maturity, the FSCS have 100% guaranteed it.