what's the chances of ICESave going bust!?

ashm1

Hi,

http://news.independent.co.uk/business/news/article1963028.ece

Isn't it more likely that Icesave forces a UK bank to go bust ?

Or will the UK banks just keep merging....?

I'm with the Halifax. I see they have increased the variable rate mortgage but my variable savings rate hasn't changed. I guess it won't rise until they pay off these bankrupt customers (Farepak included). :mad:

Did any banks go bust during the last property crash ?


Kind regards,

Ashley.

LizEstelle

If I were you, I'd get whatever money I might have with them out immediately.

martyn4764

LizEstelle wrote:

If I were you, I'd get whatever money I might have with them out immediately.

Here we go again :mad:

PJD (and others); LizEstelle's comment has no basis in economics or business - do a search to discover what her motives against Icesave actually are.

LizEstelle

I made a factually correct statement.

My 'motive' is an honourable one - although it doesn't play well in certain quarters...

si1503

Why save your money with foreign banks when there are UK banks offering just of good rates of interest? Birmingham Midshires are currently offering a 5.2% internet saver on £1+! There are also other UK banks/BS offering better rates for savings meeting certain T&C. I just don't really understand why people would stop supporting the domestic banks, and save with overseas banks when these foreigners really aren't offering anything that special. I don't know if people think its trendy or cool, or makes them ahead of the game by choosing to save with a foreign bank, but it is not exactly the smartest thing to do. I would laugh if a foreign bank did go bust! But my main concern would be information handling and security when giving out personal details to overseas companies.

prudryden

Chrismaths wrote:

Very very slim. Landsbanki are the bank behind this, and they are A rated (from memory). It's not a risk worth worrying about.

Chris -
The BFSR (Bank Financial Strength Rating) rating on Landsbanki by Moody's is C which is not that great, but a lot better than ICICI which is D+.

However, Moodys does say that because of the importance of the Icelandic Banks to the economy of Iceland, the Icelandic government would support the banks, but not guaranteed.

I think you might be thinking of the Icelandic country debt ratings which is A. Landsbanki debt is Baa1 by Moodys, which corresponds to BBB+ by S & P.

In any case, the UK Deposit Protection Scheme woud be in affect up to £31,700. How long it takes to get your money, however, is anyone's guess.

ICICI scares me. BCCI and Barings ghosts still haunt me.:)

keefrto

Have I missed something? Has Martin himself not even recommended this account? 8th november 2006.
"Don’t worry that you’ve probably never heard of this bank, it is regulated by the FSA so you have the same protections as with other banks and it is also a member of the Banking Code."

ReportInvestor

ashm1 wrote:

Isn't it more likely that Icesave forces a UK bank to go bust?

Dunno about that. The building societies are moaning about intense competition in the savings market (Portman cited it as a reason for the merger with Nationwide.) So IceSave and ICICI may bring about change (rather than bankruptcy).

And they may also indirectly cause a few UK homeowners to go bust.

I see that Nationwide BS wasted no time before slapping 0.25% on its basic mortgage rate. Other societies may follow suit.

Intense competition in the savings market may mean that some institutions who might previously have "softened the blow" on homeowners will no longer feel that they can.

The Halifax rate decision will be interesting.

prudryden

ATTENTION:

I have just read the other comments on this thread REF: BFSR and referring to another thread whereby I spoke about the BFSR. My intention was not to discredit Landsbanki as an unsafe bank. It was meant as a caution because people were talking about putting their entire savings funds into ICICI and Landsbanki. In one case £200,000. It is just more prudent to diversify. Taking a few basis points less in interest to reduce exposure to one bank is intelligent investing.
I was not giving advice - but providing some information so that an investor can make his own decision with a little more knowledge. When I say ICICI worries me - that doesn't mean you should be worried.

[Deleted User]

ReportInvestor wrote:

The Halifax rate decision will be interesting.

Already announced, isn't it?